GCC vs EOR vs Offshore Extension Center — which fits a 5–20 person team?

"GCC", "EOR" and "Offshore Extension Center" get used interchangeably — but they're three different operating models with very different cost curves, control profiles and break-even points. Here's how to choose for a small team.

The three models in one paragraph each

EOR (Employer of Record): A licensed Indian entity employs your hires on your behalf. You pick the people and direct the work; the EOR handles contracts, payroll, tax, PF/ESI, gratuity and statutory compliance. Best for: 1–25 hires, fast launch, no entity yet.

Offshore Extension Center (OEC): A dedicated team operating as an extension of your HQ — same brand, same tools, same cadence — but housed and managed by a partner like A+ Search. Typically EOR-employed, with shared infrastructure, security and operations. Best for: 5–50 hires across functions, founders who want a "team" not just headcount.

GCC (Global Capability Center): Your own owned entity in India running strategic functions — engineering, product, finance, support. Maximum control, maximum overhead. Best for: 50+ hires, multi-year horizon, board-level commitment.

Decision framework for 5–20 people

Question	Lean EOR / OEC	Lean GCC
Headcount in 24 months	< 25	> 50
Time to first hire	2–4 weeks	4–6 months
Setup cost	Zero	₹25–50 lakhs
Annual fixed overhead	~6% of employment cost	₹15–25 lakhs minimum
Compliance burden on you	None	Full
IP ownership	Contractually assigned	Direct
Reversibility	30-day exit	Wind-down 6–12 months

Why most 5–20 person teams should NOT open a GCC

The math rarely works under 25 people. Statutory audit, transfer-pricing study, GST returns, MCA filings, professional tax, labour-law compliance and a chartered accountant retainer alone consume ~₹12 lakhs/year — before you account for HR, office, infra and business continuity.

The hybrid path: Build → Operate → Transfer (BOT)

Start with EOR/OEC. Once you cross ~25–30 hires and the team is stable, transfer the entity to your name. You get speed at the start and ownership at scale, without paying GCC overhead during the unproven phase.

What A+ Search recommends

• 1–10 hires: EOR — flat 6% fee, US-hour overlap, Hyderabad CSM.
• 10–30 hires: Offshore Extension Center — dedicated team, shared infra, your brand and rituals.
• 30+ hires, 3-year horizon: GCC build, optionally via BOT from an existing OEC.

Talk to us about a tailored model on the contact page.