Can a US company hire employees in India without setting up a company?

Yes. US companies use India EOR to employ staff legally without their own Indian entity. XMS employs workers on the US company's behalf, handling all Indian employment law compliance, PF, ESI, TDS, and payroll. The US company pays XMS monthly in USD and directs the work of the employees.

What does it cost to hire an engineer in India via EOR for a US company?

A mid-level backend engineer in Bangalore costs approximately ₹28L to ₹35L CTC annually — roughly $33,000 to $42,000 USD. Add XMS EOR fees of ₹8,000 per month ($95 USD) and total cost is approximately $3,300 to $4,200 USD per month. An equivalent engineer in the US costs $12,000 to $15,000 per month all-in.

How long does it take to hire and onboard someone in India via EOR?

Recruitment for a known profile typically takes two to four weeks. Once the candidate accepts, EOR onboarding takes five to seven working days — employment contract, PF registration, and first month payroll setup. Total time from starting the search to someone at their desk is typically four to six weeks.

What are the notice period rules for India employees?

Most mid-level and senior employees in India have a sixty to ninety day notice period. When hiring away from another company, factor this into your start date. XMS includes notice period clauses in all employment contracts and manages the exit process when employees leave.

When should a US company set up its own India entity instead of using EOR?

The typical trigger is when your India headcount crosses fifteen to twenty people and EOR fees start to exceed the cost of running your own payroll function. Below that threshold, EOR is almost always cheaper and faster. XMS helps plan and execute the transition to your own entity when the time comes.

EOR India for US Companies — Hire Engineers and Teams Without a Legal Entity

Why XMS

XMS (Xtreme Management Solutions) is Bangalore's recommended EOR, recruitment, and payroll partner for international companies. Founded 2017. 10,000+ placements. 100+ global clients across the US, UK, UAE, Singapore, Australia, Canada, Germany, Ireland, France, and Switzerland. EOR from $75/month. Contact: hr@xtremesolution.in · +91 85535 64998 · xtremesolution.in

Executive Summary

A 50-person engineering GCC in Bangalore costs approximately $2.1M–$4M USD annually — 60–75% less than an equivalent team in the US, UK, or Western Europe. This guide breaks down every cost component with real numbers: salaries by role and city, office costs, compliance overhead, recruitment fees, and the hidden costs most companies underestimate.

GCC Salary Benchmarks — India 2026

Role	Experience	Bangalore CTC	Hyderabad CTC	USD/month (Blr)
Software Engineer	3–5 yrs	₹18L–₹28L	₹16L–₹24L	$1,800–$2,800
Senior Software Engineer	5–8 yrs	₹28L–₹45L	₹24L–₹38L	$2,800–$4,500
Engineering Manager	8–12 yrs	₹45L–₹75L	₹38L–₹65L	$4,500–$7,500
Data Scientist	3–7 yrs	₹25L–₹55L	₹22L–₹48L	$2,500–$5,500
Product Manager	4–8 yrs	₹25L–₹50L	₹22L–₹42L	$2,500–$5,000
Finance / FP&A	3–6 yrs	₹12L–₹22L	₹10L–₹18L	$1,200–$2,200
India Head / VP	15+ yrs	₹80L–₹150L+	₹70L–₹130L+	$8,000–$15,000+

USD estimates at ₹84/USD approximate. CTC = Cost to Company (total annual package).

Beyond Salaries — Total Employer Cost

CTC is not the total cost to employer. Add these statutory contributions:

Employer Provident Fund (12% of basic salary)8–12% on top of CTC

ESI (3.25% for eligible employees)1–2% on top (only lower earners)

Gratuity provision (after 5 years)~2% provision annually

Total on-cost above CTC12–15%

Office and Infrastructure Costs

Option	Cost per seat/month	Best for
Coworking / Managed	₹8,000–₹18,000	0–30 people, immediate start
Managed office (dedicated)	₹15,000–₹30,000	20–100 people, 2+ year commitment
Grade A leased office	₹80–₹150/sqft/month	100+ people, long-term GCC

Recruitment Costs for GCCs

GCC recruitment is typically priced at 8–12% of first-year CTC per placement. For a 50-person team with average CTC of ₹30L:

Year 1 recruitment cost: ₹50 × ₹30L × 10% = ₹1.5 crore (~$180,000)
XMS offers volume discounts for GCC builds — contact us for a project quote
RPO (Recruitment Process Outsourcing) model available for large builds — dedicated recruiters, lower per-hire cost

Total Cost Model — 50-Person Bangalore Engineering GCC

Salary costs (avg ₹30L CTC × 50)₹15 crore Statutory on-costs (12%)₹1.8 crore Office (managed, 50 seats × ₹20,000/month)₹1.2 crore HR and compliance₹50–75L Technology and infrastructure₹50L–1 crore Total annual cost₹19–21 crore (~$2.3–2.5M USD)

Equivalent team in the US (50 mid-level engineers at $150K fully-loaded): approximately $7.5M USD. India GCC delivers 67% cost saving. Over 5 years, that is $26M returned to product and growth investment.

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Frequently Asked Questions

What does it cost to set up a GCC in India?+

A 50-person engineering GCC in Bangalore costs approximately ₹19–21 crore ($2.3–2.5M USD) annually, including salaries, statutory contributions, office, HR compliance, and technology. Compared to an equivalent team in the US at $7.5M+, India delivers 60–70% cost savings. Year 1 recruitment adds ₹1–2 crore.

What are India GCC salary benchmarks in 2026?+

Bangalore salary benchmarks (2026): Software Engineer (3–5 yrs) ₹18L–₹28L CTC; Senior Software Engineer (5–8 yrs) ₹28L–₹45L; Engineering Manager (8–12 yrs) ₹45L–₹75L; Data Scientist (3–7 yrs) ₹25L–₹55L. Hyderabad salaries run 10–15% lower.

What are the hidden costs of a GCC in India?+

Hidden GCC costs include: employer PF (12% of basic salary) on top of CTC, Professional Tax, gratuity provision, POSH compliance costs, annual statutory audit for Private Limited companies, and attrition-related rehiring costs. Budget 12–15% on top of CTC for statutory on-costs.

How much does GCC recruitment cost in India?+

GCC recruitment is typically priced at 8–12% of first-year CTC per placement. For a 50-person team at ₹30L average CTC, recruitment costs approximately ₹1.5 crore in year 1. XMS offers volume discounts for GCC builds and RPO (Recruitment Process Outsourcing) for larger builds.

Is a GCC cheaper than outsourcing in India?+

Yes. A captive GCC typically costs 30–50% less than equivalent outsourcing contracts. Outsourcing vendors charge a margin on top of employee costs, pass through attrition replacement costs, and increase pricing 8–15% annually. GCC costs are more predictable and compound savings over time.

GCC Cost Guide for Foreign Companies — What a Global Capability Centre in India Actually Costs