In a significant shift, Hyderabad is rapidly becoming the preferred destination for multinational companies looking to establish captive units in India, challenging Bengaluru’s long-standing dominance. This change is marked by a surge in the number of Global Capability Centers (GCCs) being set up or expanded in Hyderabad during the first half of 2023.
The city’s meteoric rise as a global services hub is catching the attention of experts and industry insiders, prompting discussions about whether Hyderabad could dethrone Bengaluru as the top destination for global services. Everest Group, a prominent global research firm, suggests that if the current trend persists, Hyderabad could indeed surpass Bengaluru in a few years.
What’s particularly noteworthy is that Bengaluru, once the default choice for housing GCCs in India, has witnessed a decline in its prominence. More than half of the new GCCs established during H1 2023 are now located in cities other than Bengaluru.
This shift signifies Hyderabad’s growing allure for global corporations, with over 40 companies recently establishing or expanding their Acceleration Centers, Centers of Excellence, Innovation Centers, and R&D facilities in the city. Hyderabad’s ascendancy is driven by its robust ecosystem, skilled workforce, and specialized expertise in areas such as cloud computing, artificial intelligence, cybersecurity, and more. As Hyderabad continues to rise in the global corporate landscape, it’s clear that India’s tech landscape is undergoing a transformation, and the city is poised to play a pivotal role in shaping its future.
