DBT Bureau
Bengaluru, 1 July 2024
Hyderabad has emerged as the favourite destination for GCCs (Global Capability Centres) for setting up new centres, surpassing cities like Bengaluru, Pune, Chennai, Mumbai, & Delhi-NCR among others.
According to a ‘NASSCOM-Zinnov report titled ‘India GCC Trends- Half yearly Analysis H1CY2023’, Hyderabad and Bengaluru both saw 11 GCCs each that included new GCCs and expansion of existing centres.
Though Bengaluru saw a higher number of new GCCs during this period, Hyderabad topped in terms of expansion of existing centres.
Global companies like BlackBerry, CyberArk, Storable, Align Technology, Mondee Holdings, Lloyds Banking Group, and Inspire Brands opened their technology centres in Hyderabad during the first half of 2023.
The Nasscom-Zinnov report showed that India had 1,580 GCCs with 1.66 million employees by the end of FY23. As per a Deloitte study, GCCs contribute $5.4–5.6 billion or Rs 40,000-42,000 crore in taxes, of which about $4 billion or Rs 30,000 personal income tax contribution is 5.5% of the personal income tax collection by India for the financial year 2019-2020.
Most GCCs, which have come up recently in India encompass all three functional areas including engineering research & development (ER&D), information technology (IT), and business process management (BPM), said the Zinnov-Nasscom India’s GCC Trends report. According to global consultancy firm EY, India is likely to be the home of 2,000 GCCs in the coming years.
Why is Hyderabad preferred as the city of choice?
The capital city of Telangana is known for its cosmopolitan nature. It has emerged as a talent hub with engineers being available in key digital skill sets. Moreover, the compensation is fairly competitive in Hyderabad as compared to other technology centres like Bengaluru and Pune.
Sound infrastructure is also alluring global firms to set up their technology centres in the city. HITEC City, Kondapur, Manikonda, Kukatpally, and Raidurg have emerged as the hubs for opening new centres in the southern city. Supportive government policies also play a role in the growth of the entire GCC ecosystem in Hyderabad.
