Introduction
Establishing a Global Capability Centre (GCC) in India has traditionally been associated with building a substantial team, securing office space and creating a long-term operational presence. But not every company needs hundreds of employees to begin developing capabilities in India.
Some organisations need only a small team of software engineers, data specialists, financial analysts or cybersecurity professionals to support their global operations. Others want to test the Indian talent market before making a larger investment. For these businesses, a smaller capability centre can offer a more measured route into the market.
This is where Nano GCCs enter the conversation.
Nano GCCs are small, specialised centres that allow companies to build dedicated teams in India without immediately committing to the scale of a conventional large GCC. They can provide access to skilled professionals, closer control over operations and a foundation for developing capabilities over time.
Industry reporting in 2026 has highlighted Nano GCCs, typically employing between 5 and 100 specialists, as a potential route for mid-market companies entering India. Their appeal reflects a broader shift in how organisations consider the size, purpose and operating model of their Indian centres.
However, a small team is not automatically a successful GCC. Companies still need a clear business mandate, suitable talent, appropriate technology, sound governance and a realistic financial plan.
The key is to design the centre around a specific business need rather than treating it as a smaller version of a large operation.
This guide explains how Nano GCCs work, which companies should consider them, how to establish one in India and what to evaluate before deciding whether to scale.
1. What Is a Nano GCC?
A Nano GCC is a small, dedicated capability centre established by a company to perform specialised work for its global business.
Unlike a conventional outsourcing arrangement, in which an external service provider delivers agreed services, a GCC generally operates as an extension of the parent organisation. Its employees contribute to the company’s internal capabilities, processes, technology or products.
A Nano GCC applies this principle on a smaller scale.
It may begin with a handful of specialists and expand as the business case develops. The initial team could work on a specific technology platform, product development function, finance process or other defined business requirement.
The exact size of a Nano GCC is not governed by one universal definition. The term is generally used to describe a compact centre, and the number of employees can vary according to the company’s objectives and the terminology used by different industry participants.
How does a Nano GCC differ from a traditional GCC?
The primary distinction is the initial scale and scope of operations.
A larger GCC may support multiple functions, employ several hundred or thousands of people and have a substantial leadership structure. A Nano GCC typically begins with a narrower mandate and a smaller team.
That does not necessarily mean it has less strategic importance.
A team of 15 specialists working on a critical software platform or a specialised analytics capability may influence important business outcomes even though its headcount is limited.
The value of a Nano GCC should therefore be assessed by the work it performs, the expertise it develops and its contribution to the parent organisation.
Is a Nano GCC the same as outsourcing?
No. The distinction depends on the operating model, not simply the number of employees.
A Nano GCC generally forms part of the company’s own operating structure, with the organisation retaining responsibility for its people, capabilities and strategic direction.
An outsourcing arrangement places some or all of the contracted work with an external provider.
A company may also use a service provider to support the establishment of a Nano GCC. In that case, the provider’s role should be clearly defined, including which responsibilities remain with the company.
For a broader comparison of these models, see Flexo’s existing article, GCC vs Shared Services Centre vs Outsourcing: Which Model Is Right for Your Business?
2. Why Are Companies Considering Nano GCCs?
A smaller capability centre can be attractive when a company wants to build dedicated expertise without immediately establishing a large operation.
The decision should be based on the company’s business needs rather than the assumption that smaller centres are always cheaper or easier to manage.
Access to specialised talent
A company may need a small group of professionals with expertise in a particular area.
Examples include cloud engineering, data analytics, software development, cybersecurity, product testing or financial analysis.
Building a dedicated team can give the company greater control over recruitment priorities, knowledge development and the direction of the work.
However, access to suitable talent must be validated. A small team can be particularly vulnerable when hiring depends on a narrow skill set or a limited number of experienced professionals.
A measured entry into India
Companies considering India for the first time may be uncertain about recruitment timelines, employee expectations, operational costs and the suitability of different locations.
Starting with a smaller centre can help them test these assumptions before making a larger commitment.
The initial team can establish working practices, develop relationships with global stakeholders and provide evidence about the feasibility of expanding.
This approach is most useful when the pilot has defined objectives and a clear process for evaluating its results.
Greater control over important capabilities
Some businesses want to develop internal expertise in areas that are central to their products, technology or operations.
A dedicated team can provide continuity and allow the company to build knowledge over time.
For example, a software company may want an India-based team to contribute directly to product development rather than rely entirely on an external provider for selected engineering activities.
The value comes from the team’s role in the business, not simply from locating employees in India.
A starting point for future expansion
A Nano GCC may become the foundation for a larger centre if the company’s requirements grow.
The initial team can establish recruitment channels, operating processes and relationships with the parent organisation.
If the business case remains strong, the company can add new roles or functions in stages.
However, expansion should not be automatic. A centre that performs well at a small scale may require additional leadership, management processes and infrastructure before it can grow successfully.
3. Which Companies Should Consider a Nano GCC?
Nano GCCs may be suitable for companies whose initial requirements are specialised, relatively focused and manageable with a small team.
They are particularly worth evaluating when the business has a clear reason to build internal capabilities in India but does not yet require a large operation.
Mid-market companies entering India
A mid-market company may want to establish a dedicated team without committing to the size and infrastructure of a large GCC.
A smaller centre can provide a way to validate recruitment, operating requirements and business value before increasing the investment.
The company should still prepare a business case covering the full cost of establishing and operating the centre.
Technology and product companies
Companies developing software, digital products or technology platforms may need a small team to support engineering, testing, analytics or product development.
A Nano GCC can provide a dedicated group of employees who work within the company’s development processes and priorities.
The model is most suitable when the team can operate effectively at the proposed scale and has access to the technical leadership and systems it needs.
Companies building a specialised function
An organisation may need a focused team to strengthen one part of its global operations.
This could include a data analytics group, a finance capability, a cybersecurity team or another specialist function.
Before establishing the centre, the company should assess whether the required talent is available and whether the work can be managed effectively by a small team.
Companies testing a longer-term GCC strategy
A company may use a Nano GCC to test the feasibility of a broader Indian operation.
The initial centre can provide practical evidence about hiring, retention, productivity, infrastructure and management requirements.
The company can then decide whether to retain the small team, expand its mandate or establish a larger operation.
This should be treated as a deliberate operating strategy rather than an informal trial with no defined outcome.
4. Choose the Right Function Before Choosing the Office
A common mistake is to begin with a location or office requirement before determining what the centre is supposed to accomplish.
For a Nano GCC, the function should drive the location, hiring plan, technology requirements and workplace decision.
Define the team’s mandate
Specify the work the centre will perform and how it will contribute to the parent organisation.
A mandate such as “support global technology operations” may be too broad to guide recruitment or establish clear performance expectations.
A more useful mandate would identify the particular systems, products, processes or capabilities the team is responsible for supporting.
The mandate should also clarify how much authority the India-based team will have over decisions affecting its work.
Assess whether the work suits a small team
Some functions can begin with a compact team because their responsibilities are clearly defined.
Others may require a broader group of specialists, extensive management support or round-the-clock coverage.
Consider the dependencies between roles, the level of senior expertise required and the consequences of losing a key employee.
A five-person team may be sufficient for one specialised activity but inadequate for a function that requires multiple independent responsibilities and continuous coverage.
Establish measurable outcomes
Define what success should look like before the centre begins operating.
Depending on the mandate, this may include product delivery, project completion, process accuracy, service reliability, automation outcomes or other business-specific indicators.
Avoid relying only on headcount or cost savings to evaluate performance.
The centre should demonstrate that it is delivering the capability for which it was established.
5. Select a Suitable Location in India
A Nano GCC does not necessarily need to be located in the largest technology market. The right city depends on the skills required, the scale of hiring and the practical requirements of the operation.
Established hubs and emerging locations may both be suitable, but companies should assess them using consistent criteria.
Evaluate talent availability
Start by identifying the professionals the centre needs and the level of experience required.
Examine the availability of relevant skills, compensation expectations, recruitment timelines and competition from other employers.
A small centre may be especially sensitive to recruitment difficulties because each position can represent a substantial proportion of its workforce.
Consider established GCC hubs
Bengaluru, Hyderabad, Pune, Chennai and Delhi NCR offer established business and technology ecosystems, although conditions vary by city and micro-market.
These locations may be appropriate when the centre requires access to specialised talent, experienced managers or a broader professional network.
The company should compare the specific locations that meet its needs rather than treating an entire city as one uniform market.
Evaluate emerging locations where appropriate
Other Indian cities may offer relevant talent pools and different cost structures.
However, the company should confirm the availability of the required skills, suitable office infrastructure and the services needed to support the operation.
A smaller city is not automatically the best choice for a Nano GCC. If recruitment is difficult or the office cannot support the centre’s requirements, potential savings may be offset by operational challenges.
For more context, see Flexo’s existing article, Best Cities in India to Set Up a GCC: A Comparative Guide.
Assess the practicalities of operating the centre
The location review should cover connectivity, commuting, access to employees, technology infrastructure and the availability of suitable office facilities.
If the team needs frequent interaction with global leadership or regular visits from international colleagues, travel connections may also influence the decision.
The objective is to find a location that supports the work, not simply the lowest quoted office rent.
6. Decide How Much Office Space the Team Needs
A Nano GCC may not need a large dedicated office from the beginning.
The workplace should reflect the size of the team, the work it performs and its expected growth.
Consider flexible workspaces
A flexible workspace may be suitable when a company needs to establish a small presence quickly or wants to avoid committing to a large office before its requirements are clear.
Depending on the provider and location, options may include dedicated desks, private cabins or other arrangements.
The company should confirm that the available workspace provides the necessary privacy, security, connectivity and facilities.
A flexible arrangement should not be assumed to meet every operational requirement.
Evaluate managed offices
A managed office may suit a company that needs dedicated space but wants support with some workplace operations.
The scope of services varies by agreement, so the company should establish which responsibilities are included and which remain with the occupier.
For a small team, a managed arrangement may simplify certain operational tasks, but the overall commercial terms should be compared with other available options.
Consider a traditional lease when justified
A traditional lease may be appropriate if the company requires specialised infrastructure, greater control over the premises or a stable long-term workplace.
However, a lease should be assessed against the expected size and duration of the operation.
A small team with uncertain growth may not need the same level of space commitment as a larger centre with established long-term requirements.
Plan for growth without paying for unnecessary capacity
The company should estimate its initial headcount and consider how the workplace could accommodate additional employees.
If the centre grows, the company may be able to expand within the existing premises or move to a larger facility.
The availability of additional space should be verified rather than assumed.
Flexo’s article, GCC Office Space Strategy in India: Planning for Hybrid Work, Utilisation and Expansion, provides further context for evaluating workplace models and future capacity.
7. Build the Right Team and Leadership Structure
A small centre needs a clear structure, even if it does not require multiple layers of management.
The challenge is to provide sufficient leadership and accountability without creating unnecessary overhead.
Hire for the actual mandate
Recruitment should follow the work the centre is expected to perform.
Identify the essential skills, seniority levels and responsibilities required for the initial team.
Avoid hiring a large number of employees before the centre has established its processes and workload.
At the same time, do not underestimate the need for experienced professionals who can provide direction and help establish effective working practices.
Define local and global responsibilities
Determine who will manage the centre, approve important decisions and resolve operational issues.
In a small operation, one person may perform several responsibilities, but those responsibilities should still be clearly understood.
The team should know how its work connects to the parent organisation and which decisions require approval from global leadership.
Plan for employee development
A small team can become dependent on a few individuals if knowledge is not shared.
Document important processes, establish appropriate backup arrangements and provide opportunities for employees to develop additional skills.
Career development is also important for retention. Employees should be able to understand how their roles can evolve as the centre’s capabilities grow.
Avoid dependence on one employee
If a critical process relies entirely on one specialist, the centre may face disruption when that person is unavailable or leaves the company.
Identify critical responsibilities and establish reasonable continuity arrangements.
For a small team, cross-training and documentation can be particularly valuable because there may be limited capacity to redistribute work at short notice.
8. Establish Technology, Security and Governance from Day One
A small team does not eliminate the need for appropriate technology and governance.
The requirements should be proportionate to the work, but the company should not postpone essential controls simply because the centre has few employees.
Provide the necessary technology infrastructure
Identify the systems, devices, software and connectivity required for the centre to perform its work.
The company should establish how employees will access corporate systems, receive technical support and collaborate with colleagues in other locations.
If the work requires specialised infrastructure, those requirements should be confirmed before the office is selected.
Define information security requirements
Determine how the centre will handle company information, intellectual property, customer data and access credentials.
Establish the relevant security policies, access permissions, employee training and incident reporting procedures.
The requirements will depend on the industry, the data involved and the parent organisation’s policies.
A small centre handling sensitive product or customer information may require substantial controls despite its limited headcount.
Establish appropriate governance
Define who is accountable for the centre’s performance, how risks are reported and how important decisions are made.
The company should also clarify its reporting arrangements and ensure that the India team understands the standards it is expected to follow.
Governance should be practical and proportionate, but essential responsibilities should never remain ambiguous.
Prepare for business continuity
Identify the systems, people and processes that are critical to the centre’s operations.
Consider how the company would respond if a key employee became unavailable, the office could not be accessed or an important system experienced an outage.
Document the appropriate response procedures and review them as the centre develops.
9. Understand the Costs of Establishing a Nano GCC
A small headcount does not mean that every operating cost will be small.
Some expenses, including technology setup, professional support, management time and security arrangements, may remain significant regardless of the size of the team.
A realistic financial model should include the full cost of establishing and operating the centre.
Initial setup costs
Depending on the operating model, initial costs may include recruitment, onboarding, equipment, software, workspace deposits, office setup and professional services.
Companies should also account for the internal time required to establish the centre and coordinate with the parent organisation.
The exact requirements will depend on the company’s structure and the activities the centre will perform.
Recurring operating costs
Recurring costs may include salaries, benefits, workspace, utilities, technology subscriptions, recruitment support, training and administration.
Some costs may be included in a managed or flexible workspace agreement, while others may be billed separately.
The company should verify the commercial terms rather than assume that a particular workspace model includes every service.
Allow for recruitment and retention costs
Hiring delays can affect the centre’s ability to begin delivering work.
Recruitment costs may include sourcing, assessment, onboarding and training. Retention also requires investment in compensation, management and career development.
These costs should be considered when comparing the Nano GCC with alternative operating models.
Compare alternatives using the same assumptions
The company should compare the expected cost of a Nano GCC with other practical options, such as outsourcing the work or expanding an existing team elsewhere.
The comparison should account for differences in control, expertise, flexibility, management responsibility and the long-term value of the capability being built.
The lowest-cost option may not provide the control or continuity the company needs.
10. Create a Roadmap for Launching the Centre
A phased approach can help a company establish its Nano GCC while managing uncertainty.
Phase 1: Define the business case
Specify why the centre is needed, which capabilities it will develop and what outcomes it is expected to deliver.
Identify the initial functions, target team size, key dependencies and expected timeline.
Phase 2: Validate the talent and location
Assess the availability of relevant professionals and shortlist locations that meet the centre’s requirements.
Review office options, infrastructure, recruitment expectations and operating costs.
Phase 3: Finalise the operating model
Decide whether the centre will use a flexible workspace, managed office or traditional lease.
Establish the leadership structure, reporting relationships, technology requirements and security controls.
Phase 4: Recruit and establish the initial team
Hire the people required to deliver the centre’s initial mandate.
Provide the necessary equipment, systems, training and access to global colleagues.
Ensure that employees understand their responsibilities and how their performance will be assessed.
Phase 5: Evaluate results before expanding
Review whether the centre is delivering its intended outcomes.
Examine recruitment performance, retention, operating costs, project delivery and feedback from the parent organisation.
Use these findings to decide whether the centre should remain at its current size, take on additional responsibilities or expand its workforce.
11. Common Mistakes to Avoid
Treating the Nano GCC as a temporary experiment without a clear purpose
A pilot should have defined objectives, a timeline and criteria for evaluating success.
Without these, the company may continue spending on a centre without knowing whether it is meeting its intended purpose.
Underestimating leadership requirements
Even a small team needs direction, performance management and access to decision-makers.
A lack of clear leadership can slow delivery and make employees feel disconnected from the wider organisation.
Choosing the location based only on cost
A lower-cost location may not provide the required talent, office infrastructure or connectivity.
The company should assess the overall operating model before making a location decision.
Ignoring security because the team is small
Security requirements depend on the work and information handled, not simply the number of employees.
Essential controls should be established before the team begins operating.
Expanding before the operating model is ready
Adding employees can increase complexity if processes, responsibilities and leadership arrangements are not prepared for growth.
The company should establish a stable foundation before increasing the centre’s scope.
Failing to define what happens next
The company should decide how it will evaluate the Nano GCC after launch.
Depending on the results, it may retain the existing team, expand the centre, change its mandate or reconsider the operating model.
These decisions should follow the business evidence rather than an assumption that every small GCC must eventually become a large one.
Frequently Asked Questions
1. What is a Nano GCC in India?
A Nano GCC is a small, dedicated capability centre established in India to perform specialised work for a parent organisation. It typically begins with a limited team and a focused mandate, although the exact size can vary according to the definition used.
2. How many employees does a Nano GCC have?
There is no universal size definition. Some industry reporting describes Nano GCCs as centres employing approximately 5 to 100 specialists. The appropriate team size depends on the functions performed and the company’s business requirements.
3. Are Nano GCCs suitable for mid-market companies?
They may be suitable for mid-market companies that want to build dedicated capabilities in India without immediately establishing a large operation. The company should validate the business case, talent availability and ongoing management requirements before proceeding.
4. Is a Nano GCC better than outsourcing?
Neither model is automatically better. A Nano GCC may provide greater direct control over the team and internal capabilities, while outsourcing can provide access to external delivery resources. The choice depends on the work, the level of control required, the cost structure and the company’s long-term plans.
5. Does a Nano GCC need a dedicated office?
Not necessarily. Depending on the work and security requirements, the company may consider a flexible workspace, managed office or traditional lease. The chosen arrangement should support the team’s operations and expected growth.
6. Can a Nano GCC expand into a larger centre?
Yes, if the business case supports expansion. The company can add employees, functions and infrastructure as its requirements develop. However, expansion should follow demonstrated business needs rather than being treated as an automatic next step.
7. What should a company evaluate before establishing a Nano GCC?
Key considerations include the business mandate, required skills, location, workspace, technology, security, leadership, operating costs and performance measures. The company should also determine how it will assess the centre’s results after launch.
Final Thoughts
Nano GCCs offer companies another way to approach capability building in India. Instead of beginning with a large operation, an organisation can establish a focused team around a specific business requirement and develop its capabilities over time.
The model may be useful for mid-market companies, technology businesses and organisations seeking specialised expertise without immediately committing to a substantial centre.
However, a small team still needs a clear mandate, suitable talent, appropriate infrastructure and effective leadership. The company must also understand the full cost of operating the centre and determine how success will be measured.
A well-planned Nano GCC should not be judged by how quickly it grows. Its value lies in whether it delivers the capabilities the business needs and provides a sound foundation for future decisions.
For some organisations, that may eventually mean building a larger GCC. For others, a small specialist team may remain the right long-term model.
