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ARTICLE · 03 SEPTEMBER 2026

Setting Up A GCC In India: Managing Employment And IPR Risks

Lakshmikumaran & Sridharan
Lakshmikumaran & Sridharan
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Lakshmikumaran & Sridharan

Lakshmikumaran & Sridharan

Lakshmikumaran & Sridharan (LKS) is a premier full-service Indian law firm specializing in areas...

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India has emerged as the global hub for capability centres, but establishing one requires navigating complex employment laws, intellectual property protections, and data governance frameworks. Foreign businesses must understand how workforce structuring, restrictive covenants, IP ownership, and compliance obligations intersect to protect their investments and mitigate legal risks in this rapidly evolving landscape.

IndiaEmployment and HR
Paritosh Chauhan
Paritosh Chauhan
Shylla Sawhney
Shylla Sawhney
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In brief

The article discusses the principal legal and practical considerations that foreign stakeholders should keep in mind when establishing or scaling a GCC in India.

India has become the preferred jurisdiction for Global Capability Centres (‘GCCs’) across technology, financial services, pharmaceuticals, retail, manufacturing, consulting and digital businesses. What began as a cost-efficient offshore delivery model has evolved into a strategic platform for global innovation, product engineering, analytics, cybersecurity, finance, legal operations and AI-led transformation. India is home to more than 1,700 GCCs generating revenue of USD 64.6 billion and directly employ more than 1.9 million people.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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