India isn’t just a consumer market anymore—it’s the operational nerve center of the global economy. With its GDP projected to hit $5 trillion by 2027, a deep digital talent pool, and robust infrastructure, India is now the strategic destination for offshoring mission-critical functions.
But let’s be clear: diving into India without a defined offshoring strategy is like deploying a product without QA—you may crash before you even launch.
Whether you’re setting up a tech delivery center, a financial back office, or a full-fledged GCC, this guide breaks down the most effective offshoring models.
So, how do you crack this market? What’s the best way in?
Let’s explore the most common routes foreign companies take when entering India, what works for whom, and what you should consider before making your move.
Joint Ventures: Partner Up to Navigate the Maze
If your offshore scope involves stepping into a regulated sector or you need someone who knows the local ropes, joint ventures are a solid bet. You team up with a local player who understands the culture, government, and market quirks. You share risk, resources—and ideally—rewards.
Starbucks nailed this with Tata Global Beverages in 2012. The result? Over 300 outlets across 25+ cities by 2023.
SRKay Consulting’s survey shows 30% of businesses prefer JVs to tackle India’s regulatory complexity while leveraging local expertise.
Wholly Owned Subsidiaries: Own It All, If You Can
Want total control? This is your route—but it’s not for the faint-hearted or undercapitalized.
Owning your Indian arm outright means you steer every decision, from branding to operations.
Amazon did just that. Since 2013, they’ve invested over $6.5 billion, grabbing more than 30% of India’s e-commerce market.
But this route demands legal acumen and capital. Still, 40% of business leaders prefer this for long-term alignment and autonomy.
Build-Operate-Transfer (BOT): Reduce Risk, Own Later
Not ready to commit upfront capital? Want to test scalability before going all in?
The BOT model is ideal.
- A local partner builds the delivery center
- Operates it for a few years
- You take over once things stabilize
SRKay’s BOT-as-a-Service has helped companies scale from 0 to 500+ employees within 12–18 months—with minimal setup hassle.
Captive + Strategic Partner: Own Core, Outsource Non-Core
Many global firms now blend ownership with outsourcing:
- Keep high-sensitivity functions in-house via captives
- Outsource support roles (e.g., payroll, recruitment) to Indian vendors
Best of both worlds: control where it matters, flexibility where it doesn’t.
Strategic Alliances: Share Strengths, Not Equity
Tech, industrial, and B2B firms often opt for strategic alliances—collaborations without equity involvement.
Example: Cisco’s partnerships with Indian telecom firms to roll out infrastructure.
These alliances allow for co-innovation and agility. SRKay’s research shows 40% of global respondents rank local partnerships as very important.
Greenfield Investments: Build Your Own Castle
Need a customized setup like a plant or data center? Go greenfield.
It’s costly and slow—but offers full infrastructure control.
Hyundai’s Tamil Nadu plant? Now India’s second-largest automaker.
Initial costs are high, but India’s capital subsidies (up to 25%) in some states make it attractive.
Acquisitions: Buy Your Way In
Need speed and want a ready footprint? Acquire a local company.
It’s the fastest way to access:
- Customers
- Talent
- Infrastructure
But it’s complex—due diligence and integration challenges are real. Still, many global players prefer this for quick scale.
Remote Offshoring: Test Before You Build
Want to test Indian talent before setting up shop?
Start with:
- EOR (Employer of Record) platforms
- Freelance hiring
It’s a low-risk way to test for:
- Productivity
- Cultural alignment
- Skill fit
Once validated, scale to formal operations.
Quick Snapshot of Market Entry Strategies
| Model | Key Benefit | Investment Level | Best For | Example |
|---|---|---|---|---|
| Joint Venture | Local expertise + shared risk | Medium | Regulated sectors | Starbucks-Tata |
| Wholly Owned Subsidiary | Full control, brand alignment | High | Tech, BFSI, long-term GCCs | Amazon |
| Build-Operate-Transfer | Low-risk scaling | Medium | Mid-sized, cost-sensitive firms | SRKay BOT programs |
| Captive + Partner | Optimize core vs. non-core | Medium | Large global firms | Retail + BPO hybrid |
| Greenfield Investment | Infrastructure control | High | Manufacturing, data centers | Hyundai (manufacturing) |
| Acquisition | Speed to market, talent access | High | Time-sensitive scaleups | Accenture India deals |
| Remote Offshoring/EOR | Talent testing, quick start | Low | Startups, exploratory teams | Freelance/EOR hiring |
How to Pick Your Best Fit?
Ask yourself:
- Are you offshoring product dev, operations, analytics, or compliance?
- Do you need IP control from day one?
- Are you looking to test first or scale fast?
- Is India core to your digital backbone or just a support hub?
- What level of regulatory exposure can you handle?
SRKay’s I.N.D.I.A.S. Playbook helps design the right fit, avoid missteps, and accelerate value realization.
Interestingly, 42% of senior executives favor wholly owned subsidiaries for control, but 50% of junior managers highlight regulatory complexity as a barrier—making a strong case for expert guidance.
Final Thoughts
Offshoring to India is no longer about cost arbitrage—it’s a strategic growth move.
The rewards are massive, but only for companies that plan smart, localize operations, and adapt fast.
The model you choose will define your pace, risk, and control—so pick wisely.
Thinking of launching a GCC, delivery center, or tech hub in India? Check out our whitepaper for detailed case studies, compliance maps, and execution frameworks.