Comparison Guide
Both models work. Neither is universally better. Here's an honest breakdown to help you choose the right one for your situation — written by a GCC partner who'll tell you when outsourcing makes more sense.
| Factor | GCC (Captive Center) | IT Outsourcing |
|---|---|---|
| Team ownership | Your employees, your culture | Vendor's employees |
| IP ownership | 100% yours | Typically shared or licensed |
| Cost (Year 1) | Higher (setup + ramp) | Lower (pay-per-project/hour) |
| Cost (Year 2-5) | Lower (amortized setup, no vendor margin) | Higher (vendor margins compound) |
| Control over quality | Full control | Limited (SOW-dependent) |
| Talent retention | High (employees invested in your mission) | Low (vendor rotates talent) |
| Scalability | Scale at your pace, your terms | Vendor-dependent |
| Knowledge retention | Institutional knowledge stays in your org | Walks away when contract ends |
| Time to start | 8-12 weeks | 2-4 weeks |
| Minimum viable size | 5-10 people | 1 person |
| Management overhead | Requires India leadership or partner | Vendor manages day-to-day |
| Best for | Long-term capability building, AI/IP-heavy work | Short-term projects, non-core work |
You're building a long-term engineering capability (2+ year horizon)
Your work involves proprietary AI models, core IP, or sensitive data
You want to own your team and retain institutional knowledge
You're spending $500K+/year on outsourcing and want better economics
Talent retention and cultural alignment matter more than speed to start
You need dedicated, embedded teams — not rotating contractors
You need to ship a specific project in <3 months
Your needs are project-based, not ongoing
You need fewer than 5 people and don't plan to scale
The work is non-core (testing, maintenance, support)
You don't have bandwidth to manage an India operation (and don't want a managed GCC partner)
Scenario: 25-person engineering team over 5 years
| Cost Component | GCC (5 Years) | Outsourcing (5 Years) |
|---|---|---|
| Setup costs | $150K | $0 |
| Annual team cost | $1.2M/yr × 5 = $6M | $1.8M/yr × 5 = $9M |
| Vendor margin | $0 | $2.5M (embedded in rates) |
| Knowledge loss cost* | $0 | $500K-$1M (re-onboarding) |
| Total 5-year cost | ~$6.15M | ~$10-12M |
| IP ownership | 100% | Negotiable |
| Team at end of 5 years | Yours | Gone |
*Knowledge loss cost estimates based on industry averages for re-onboarding replacement teams when vendor contracts change.
Is this a 2+ year need?
Does the work involve core IP?
Are you spending $500K+/year?
Do you need >10 dedicated people?
We're a GCC partner, so naturally we believe in the model. But we'll tell you when outsourcing is the better fit. If your project is short-term, small-scale, or non-core, outsourcing may make more sense.
Absolutely. Many companies start with outsourcing to validate the India model, then transition to a GCC for long-term cost savings and IP ownership. NeoIntelli supports this transition.
A hybrid model works well for many companies. Core IP and long-term capabilities go to your GCC, while non-core or surge-capacity work goes to outsourcing vendors.