Capability centres · 6 min read

How to set up a global capability centre in India

What has to happen, and in what order, to open a capability centre in India that your company owns and that does real work from its first months.

By Akshay Dodhiwala, Co-founder & CEO · For COOs, CTOs and heads of global delivery at companies outside India

Decide the charter and the first roles

A global capability centre (GCC) is a team in another country that belongs to your company and does work your company owns. The first decision is what that work is. Write a one-page charter that says which functions the centre will run, what it will own outright, and what stays with the parent teams. A centre with a vague charter becomes a pool of extra hands, and good people leave pools of extra hands.

Then name the first roles. Start with work that is well understood at home, has clear inputs and outputs, and has a parent-side manager who wants it to succeed. Leave experimental work for later, when the centre has its own leaders and habits.

  • Functions the centre will own
  • Work that stays with the parent
  • The first roles, named one by one
  • A parent-side sponsor for each function
  • How success will be judged in year one

Appoint the leadership before the team

Hire the centre head first, or very early. This person will make hundreds of small decisions you cannot make from another time zone: who to hire, what to escalate, how to explain the parent company to a new team. Look for someone who has run delivery at scale in India and who is comfortable in a room with your executives.

Give the role real authority. If every hire and every purchase needs approval from head office, the centre moves at the speed of your inbox. Agree at the start what the centre head decides alone, what needs consultation and what needs sign-off. Add functional leads (engineering, data, operations) as each function grows past what one person can manage.

Hire in waves

Hiring a whole centre in one go rarely works. Recruit in waves, and let each wave settle before the next arrives. The first wave should be senior: people who can set standards, interview well and train those who follow. Later waves can carry more junior and mid-level staff.

Keep the parent team in the interviews for early hires so both sides agree on the bar. Write the bar down: the skills tested, the exercises used, the reasons for rejection. Notice periods in India can be long, so plan for the gap between an accepted offer and a first day. Employment terms, contracts and benefits follow local rules and practice. Take advice from local HR and legal professionals instead of copying your home-country templates.

  • Senior hires first
  • A written hiring bar
  • Parent-side interviewers for early waves
  • An onboarding plan for week one
  • Local advice on employment terms

Workspace, equipment and tooling

Choose the city for the skills you need and the leaders you can hire there, then choose the workspace. Many centres begin in a managed office and move to their own premises once headcount is predictable. Whatever you pick, people need laptops, network access, accounts and permissions on their first day. A new hire who waits two weeks for system access learns something about the company that is hard to unlearn.

Put the centre on the same tools as the parent: the same code repositories, ticketing, chat, documentation and data platforms. Separate tools create a separate company. Work through data access with care, because privacy and compliance requirements may limit what can be viewed or processed from another country. Involve your security and legal teams before the first hire.

Working practices that make it one team

Time zones shape every day. Agree a fixed overlap window for live conversation and protect it. Outside that window, work has to move in writing: clear tickets, written decisions, recorded handovers. Teams that depend on calls for everything stall when the other side is asleep.

Give the centre whole pieces of work with an outcome attached. A team that only receives tasks will wait for instructions. A team that owns a service, a product area or a process will improve it. In the first months, send parent-side people to India and bring centre leads to head office. Time together early prevents a great deal of misunderstanding later.

  • A fixed daily overlap window
  • Written decisions and handovers
  • Ownership of outcomes
  • Visits in both directions

Governance with the parent company

Governance answers three questions: who decides, how progress is measured, and how problems travel upwards. Set up a small steering group with the centre head, the parent sponsors, and people from finance and HR. Meet monthly at first.

Measure a few things that matter: hiring against plan, attrition, delivery against commitments, quality, and how satisfied the parent teams are with the work. Review the charter at set intervals. Most centres start with delivery and take on more ownership as trust grows, and governance should make that widening deliberate.

Legal entity structure, tax, the arrangements between the entities and the cost model belong here too. They depend on your circumstances and on current local rules, so this guide does not cover them. Take advice from qualified legal and tax professionals in India before you commit.

Alone, outsourced, or build-operate-transfer

There are three common routes. Doing it alone gives you full control from day one, and it means building local hiring, HR, facilities and leadership knowledge from nothing. It suits companies that already have people on the ground or have done this before.

Outsourcing the work to a services firm is quicker to start and easier to scale up or down. The team belongs to the vendor, so the knowledge and the people can leave with the contract. It suits work you do not need to own for the long term.

Build-operate-transfer (BOT) sits between the two. A partner builds the centre, hires the team and runs it, then transfers the people and operations to you at an agreed point. You get a working centre sooner and you end up owning it. The transfer terms need care: what moves, when, and on what conditions. Data Prophets works on this model and has built and handed over two centres, each with 80+ people.

  • Alone: full control, most to build yourself
  • Outsourced: quick start, vendor keeps the team
  • BOT: partner builds and runs, then you own it

What to do next

Write the one-page charter and list the first roles. Name a parent-side sponsor for each function. Then decide which route fits: alone, outsourced or BOT. Before any commitment, speak to local legal, tax and HR advisers. If BOT is on your list, we can talk through how a handover works in practice.

Your next step

Write the one-page charter and list the first roles. Name a parent-side sponsor for each function. Then decide which route fits: alone, outsourced or BOT. Before any commitment, speak to local legal, tax and HR advisers. If BOT is on your list, we can talk through how a handover works in practice.

Discuss a capability centre