Hyderabad surpasses Bangalore in GCC delivery setups

The State capital’s status as the preferred destination for companies to set up their new units or expand existing ones has once again been affirmed with the city surpassing Bengaluru in terms of Global Capability Centre (GCCs) establishments in the first half of 2023.

More than 40 global companies established or expanded their Acceleration Centres, Centres of Excellence (CoEs), Centres of Innovation and R&D Centres in Hyderabad during this period, according to the Dallas-headquartered research and analysis firm Everest Group.

This trend is also reflected in the growth of technology jobs in the city. Hyderabad’s share of tech jobs, as a percentage of overall technology jobs in India, has surged from 33 per cent to 44 per cent during 2021-22. Simultaneously, the demand for non-tech services continues to grow, reflecting strong investor sentiment, an Everest Group blog report said.

The city has shown admirable growth and resiliency during the past two years, recording one of the country’s highest growth rates for global service delivery, it said, adding that the commitment to fostering a conducive business environment was evident by the regular engagement between IT and Industries Minister KT Rama Rao and top corporate executives.

Several announcements of new centre setups and expansions, including those from Mondee Holdings, Storable, Rite Software, Tekgence, Zapcom, and Charles Schwab Corporation, resulted from the Minister’s trip to the United States this May.

Difference between Hyderabad and Bengaluru 

On the difference between Hyderabad and Bengaluru, the latter being known as India’s Silicon Valley, it said there were multiple factors. With high-quality talent, state-of-the-art infrastructure for delivering advanced technological services and strong government support, Hyderabad has ascended as a top global services destination.

In contrast to the thriving atmosphere in Hyderabad, the environment in Bengaluru is comparatively subdued for a city seems to be grappling with the impacts of the economic downturn. The two cities present a stark juxtaposition in terms of their future growth



trajectories, the blog said.

Though Hyderabad has been popular for pharmaceutical enterprises, the city’s appeal has now expanded to diverse fields. Over the years, the city has also attracted multiple Fortune 500 giants from aerospace, manufacturing, retail services, pharmaceuticals, and professional services industry verticals.

Hyderabad’s diversity is not limited to industries. In fact, different types of services are being delivered to clients from these GCCs set up in the city to across the globe.

Goldman Sachs is expanding its delivery footprint for engineering services and business innovation by employing over 2000 full-time equivalent employees (FTEs), FedEx is establishing a centre of innovation for supply chain optimization, and Lloyds Banking Group is utilizing the location for delivering cyber security services. This apart, Apollo Tyres, DAZN, Ocugen, Pi Square and Warner Bros. Discovery are also leveraging the location for a wide variety of services, it said.

Hyderabad is also emphasizing on delivery of future technologies. A wide range of advanced services such as animation, Artificial Intelligence (AI), cloud computing, Internet of Things (IoT), Machine Learning (ML), Natural Language Processing (NLP), Robotic Process Automation (RPA), visual effects (VFX), Augmented Reality (AR), and Virtual Reality (VR) are also being delivered by companies in the city.

Hyderabad’s trajectory is increasing with every passing quarter. And this is possible due to availability of high quality talent and world-class infrastructure, the blog says, adding that this apart, the city earned a reputation as an educational hub that houses globally-recognized institutions such as ISB, IIIT and BITS Pilani.

More importantly, in contrast to Bengaluru’s high cost of living and infamous traffic congestion, Hyderabad offers a more affordable lifestyle without compromising quality.

The unwavering government support has amplified the impact of both Hyderabad’s talent and infrastructure. The State government has implemented multiple initiatives to improve the conduciveness of the city’s business environment and foster growth.