Pick the model for the next stage, not the vendor in front of you.
The three common models, recruitment agency, employer of record, and global capability center, are not competitors. They are stages. This guide explains how each works, what it costs, and when to move from one to the next.
Most founders pick an India operating model based on what a vendor sells them, then discover the model no longer fits a year later.
If you have ten minutes before a hiring review, read only this.
The three models, briefly.
finds and places candidates. You or an EOR employ them. Best for a few hires.
legally employs your India team on your behalf, handling payroll and compliance, with no entity required.
your own Indian legal entity and team. Maximum control, highest setup cost.
How each one works.
Planning a hire like this? Tell us the role and we will map the right approach within a week.
Book a consultation →Recruitment agency: when it fits.
Use an agency when you have a handful of roles and no infrastructure to build yet. You get speed and reach without commitment. The limit is that an agency hands you candidates, not an operating model; once you are hiring continuously, per-hire fees add up. This is where hiring through a recruitment partner bridges into a longer-term build.
EOR: when it fits.
Use an EOR when you want a small India team running in weeks without registering an entity. It is the right way to test the market and prove the model. The trade-off is per-head monthly cost that becomes expensive at scale, and less control than owning the entity. Many US companies hiring in India start here.
GCC: when it fits.
Set up a GCC when headcount, strategic control, and IP ownership justify the fixed cost, usually past 30 to 50 people. A captive gives you full control over culture, retention, and roadmap. Below that scale, the overhead rarely pays for itself.
The smart play is to sequence the models, not commit to one forever. Agency for the first hires, EOR to stand up a team fast, GCC once scale justifies it. We have run this progression for clients building from zero, so the move between stages does not reset your momentum.
Where a specialist partner changes the outcome.
The decisions that make or break an India team are made in the first ninety days. A partner who has built teams before prevents each mistake from being discovered the expensive way.
City strategy → Bangalore, Pune and Hyderabad compared on depth, cost and attrition for your roles.
Leadership first → The India lead is hired through executive search before any pod.
Operating model → EOR, entity or both, sequenced to headcount. See India team build.
Notice and retention → Candidates are managed through 60 to 90 day notice periods, with counter-offers mapped early.
Discuss a mandate →Real mandates, real numbers.
A first technology team in Mumbai with no prior operating footprint and sourcing restrictions that ruled out several obvious talent pools.
Planning your India team?
If you are hiring your first India employees, choosing a city or moving from an EOR to your own entity, we can map the right sequence for your stage before any commercial conversation.
A senior team member responds within one business day. No pitch deck, no obligation.