Decision Framework
OpEx vs CapEx GCC Models
The single most consequential decision in your India GCC strategy. OpEx (Managed GCC) is faster, lower risk and ideal for the first 24 to 36 months. CapEx (Direct Entity) is cheaper at steady state above 250 FTEs. Here is the data driven decision.
Side by side comparison
| Dimension | OpEx (Managed GCC) | CapEx (Direct Entity) |
|---|---|---|
| Upfront capex | USD 0 to 50K | USD 800K to 3M |
| Time to first FTE live | 30 to 60 days | 6 to 9 months |
| Year 1 fully loaded cost (100 FTE) | USD 3.6 to 4.2M | USD 4.5 to 5.5M (incl. capex amortisation) |
| Year 3 fully loaded cost (100 FTE) | USD 3.4 to 3.9M | USD 2.8 to 3.2M |
| IP and people ownership | You own from day one | You own from day one |
| Entity, payroll, compliance risk | Partner absorbs | You absorb |
| Cancellation flexibility | 30 to 90 day notice | Wind down 9 to 18 months |
| Best for | Midmarket, pilots, first 24 to 36 months | Mature captives at 250+ FTEs |
Choose OpEx if
- • Your India headcount target is under 250 FTEs in the next 24 months
- • You want to go live in under 90 days
- • You do not yet have a dedicated India general manager
- • Your CFO prefers per FTE per month over balance sheet capex
- • You want to validate function and city before committing
Choose CapEx if
- • You will exceed 250 FTEs within 18 months
- • You have a dedicated India MD ready on day one
- • You want full control over real estate, IT stack and culture
- • You need SEZ or GIFT IFSC tax structures
- • Your transfer pricing strategy requires a wholly owned subsidiary
The hybrid path most enterprises actually take
Start with OpEx Managed GCC for the first 24 to 36 months. Validate function fit, city fit, leadership pipeline. Then run a Build Operate Transfer (BOT) conversion at FTE 200 to 300, where the managed partner transfers the entity, people and operations to your wholly owned subsidiary at a pre agreed multiple. This sequence captures OpEx speed with CapEx long term economics, without ever taking the capex risk during the unproven phase.
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