Karnataka GCC Policy 2024–29: Opportunities for Global Offshore Teams

Introduction

The Government of Karnataka’s Global Capability Centre (GCC) Policy 2024–29 marks a new era for global enterprises looking to expand their operations in India. As one of the country’s most advanced tech and innovation ecosystems, Karnataka is setting the stage for the next wave of offshore development, innovation hubs, and workforce expansion.

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For organisations seeking offshore workspace setup, dedicated offshore teams, or enterprise EOR solutions in India, this policy opens up significant opportunities to build and scale efficiently. Companies can now access a deep talent pool, modern infrastructure, and strong state support to strengthen their global capability centres in India.

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1. Understanding the Karnataka GCC Policy 2024 - 29

The GCC Policy, introduced by the Department of Electronics, IT & Biotechnology, is designed to position Karnataka as the Global GCC Capital. The state currently hosts more than 2,975 GCCs, representing 30% of India’s total.

This policy aims to:

• Strengthen innovation labs and Centres of Excellence (CoEs).
  
  
• Offer financial incentives for both new and existing GCCs.
  
  
• Support flexible offshore workspace models.
  
  
• Simplify compliance for offshore teams in India.
  
  

For enterprises planning to expand globally, Karnataka offers a secure and supportive ecosystem for offshore growth and technology development.

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2. Karnataka: The Ideal Base for Global Talent Pods

Karnataka’s ecosystem holds 35% of India’s total GCC workforce, making it an ideal destination for enterprises to set up talent pods or small, agile offshore units that can scale quickly.
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By establishing talent pods in India, companies can access world-class developers, data engineers, and analysts without the complexities of setting up a local entity. This flexibility enables companies to build global talent strategies that drive innovation, cost efficiency, and speed to market.

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3. Aligning GCC Incentives with Offshore and EOR Models

The Karnataka GCC Policy offers generous incentives that complement EOR services and offshore recruitment strategies. Enterprises can receive:

• Up to INR 1.5 crore in innovation funding support.
  
  
• 50% cost coverage for setting up immersive hubs.
  
  
• 100% reimbursement for lab utilisation and workspace development.
  
  

These initiatives encourage companies to establish compliant offshore teams in India without the administrative burden. With Nexocean’s Employer of Record (EOR) solutions, enterprises can hire talent legally and efficiently while staying fully compliant with Indian employment laws.

4. The Rise of Virtual Offshore Development Teams

The modern enterprise is increasingly global, with virtual teams operating across time zones. The GCC Policy strengthens this shift by supporting innovation hubs and hybrid work models, making India a powerhouse for remote engineering teams and offshore development centres.

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Through Nexocean’s dedicated offshore teams in India, companies can build product development, IT, and engineering teams that operate as a seamless extension of their headquarters. This model reduces costs while accelerating development cycles and innovation output.

5. Strategic Offshore Advisory for Enterprise Expansion

Setting up offshore operations requires more than just hiring talent. It demands a clear strategy covering compliance, infrastructure, HR policies, and legal frameworks. Karnataka’s GCC Policy simplifies many of these elements, but enterprises still need a partner who understands the nuances of India’s offshore hiring landscape.

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Nexocean offers strategic offshore advisory services, IT outsourcing consulting, and talent sourcing advisory for enterprises building offshore teams in India. With deep market insights and a compliance-first approach, Nexocean ensures that your offshore expansion aligns with both business goals and regional regulations.

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Conclusion: Partnering with Nexocean to Build the Future of Global Workforces

The Karnataka GCC Policy 2024–29 reinforces India’s position as a leading destination for global talent, offshore innovation, and enterprise workforce expansion. For forward-thinking organisations, this is the ideal time to build a global capability centre, hire offshore engineering teams, and expand virtual operations into India.

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Nexocean empowers enterprises to achieve this through comprehensive offshore workforce solutions, including EOR services, dedicated team setups, offshore workspace management, and strategic advisory support. By combining compliance, scalability, and local expertise, Nexocean helps global companies unlock India’s potential and shape the future of distributed work.

Planning to hire offshore teams or require seamless enterprise EOR support? Get in touch with Nexocean today!
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Frequently Asked Questions

1. What are the key objectives of the policy?

The Karnataka GCC Policy 2024–2029 focuses on accelerating the state’s growth as a global innovation hub. Its core objectives include attracting 500 new Global Capability Centres, generating 3.5 lakh new jobs, delivering USD 50 billion in economic output, and ensuring balanced development across emerging cities beyond Bengaluru. The policy aims to nurture a future-ready workforce, expand world-class infrastructure, incentivise R&D, and simplify the regulatory processes companies need to establish and scale GCCs in Karnataka.

2. What is a Global Capability Centre (GCC)?

A Global Capability Centre (GCC) is a strategic unit set up by multinational enterprises to manage and deliver key business operations from a single global hub. These responsibilities can include IT services, R&D, engineering, analytics, digital transformation, product development, and customer operations. While GCCs once existed primarily to reduce operational costs, they are now innovation-driven centres of excellence that enable companies to build talent, accelerate technology development, and support global growth.

3. Why is Karnataka a preferred destination for GCCs?

Karnataka, especially Bengaluru, is India’s strongest GCC ecosystem, hosting a large share of the country's GCC workforce and operations. The state offers deep tech talent, a thriving startup and research ecosystem, and strong capabilities in AI, deep-tech, engineering, and digital innovation. Government support, high-quality infrastructure, and a business-friendly regulatory environment further strengthen Karnataka's position as the top choice for companies establishing global innovation hubs and offshore teams in India.

4. What are the main incentives offered under this policy?

The Karnataka GCC Policy introduces a wide range of incentives to encourage both new and existing GCCs, with additional benefits for centres located Beyond Bengaluru. These include:

• Rental reimbursements for offices outside Bengaluru
• EPF contribution reimbursements to support new employment
• Support for R&D infrastructure and innovation labs
• Electricity duty exemptions
• Tailored incentives for Nano GCCs (5 to 50 employees)
• Subsidies for training, internships, and talent development programmes

These incentives aim to reduce setup costs, promote regional expansion, and fuel innovation-led growth.

5. What is the “Beyond Bengaluru” initiative?

The “Beyond Bengaluru” initiative is Karnataka’s strategy to decentralise GCC-led growth by developing emerging tech hubs across cities such as Mysuru, Mangaluru, Hubballi–Dharwad, Belagavi, Tumakuru, Kalaburagi, and Shivamogga. The initiative provides additional incentives, infrastructure investment, and policy support to encourage companies to expand outside the state capital. Its goal is to create new clusters of innovation, spread economic opportunities more evenly, and build a multi-city GCC network across Karnataka.

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