GIC Setup Guide 13 Sep 2018
GIC Setup Guide

13 Sep 2018
by Sakshi Garg, Rohitashwa Aggarwal, Vivek Bhatia

The GIC Setup Guide is available only to Strategic Outsourcing & Vendor Management and GIC & Shared Services members. For information on membership, please contact us

As companies look to join the Do-It-Yourself (DIY) bandwagon through the Global In-house Center (GIC) model, a range of elements need to be considered to optimize the time and effort that goes into setting up a GIC and to achieve the desired objectives.

Successful enterprises adopt an intentional approach to setting up the GIC, as they think long-term and articulate the role of the GIC and their business impact. During the implementation, enterprises evaluate different setup options available, assess the financial impact, and key risks inherent within each option.

This document provides a summary of the key asks that every enterprise needs to think through before embarking on the journey of setting up a new GIC. These include:

  • Understanding the potential of insourcing and the extent of market adoption
  • Articulating the business objectives, the role that your GIC is likely to play, and the business impact that is expected to be delivered
  • Defining the nature and complexity of services to be delivered by the GIC
  • Evaluating different setup options (e.g., location, talent model, and commercial & legal options) and corresponding pros and cons
  • Assessing the financial impact of setting up and operating a GIC
  • Preparing the implementation blueprint (e.g., timeline, sequencing of activities, vendor selection & coordination, and operating & governance model)

The document further illustrates select aspects of a new GIC setup in India including prevalent commercial setup options (e.g., SEZ) and pros and cons of setting up as a Limited Liability Partnership (LLP) vs. Wholly-Owned Subsidiary (WOS), and typical setup timeline for a de novo GIC.


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