Hyderabad Emerges as Hub for Global Capability Centers

Fast Summary

• Hyderabad is increasingly attracting global capability centers (GCCs) due to its superior infrastructure, skilled talent pool, supportive ecosystem, relatively lower operational costs, and responsive governance.
• Over the past three years, Hyderabad has seen meaningful growth in GCCs owing to regular engagements including site visits by decision-makers and new office inaugurations.
• Special Chief Secretary Jayesh Ranjan highlighted Hyderabad’s lower cost of living and rental expenses compared to bengaluru, along with reduced attrition rates and a robust innovation ecosystem aiding GCC expansion.
• The government is developing multiple IT parks such as Neopolis-expected to rival Mumbai’s Bandra-Kurla Complex in scale and infrastructure-to address challenges accompanying rapid development.
• Senior industry leaders convened at the GCC leadership Conclave in Hyderabad hosted by The Leadership Federation. Discussions focused on India’s evolving role as a global hub for innovation via modernized GCC networks enabled by technologies like AI.

Indian Opinion Analysis

Hyderabad’s emergence as a favored destination for global capability centers underscores the city’s competitive advantage not only within India but globally. Factors like affordability compared to Bengaluru add an edge for businesses seeking efficiency without compromising quality. Importantly, proactive measures like developing IT parks such as Neopolis indicate foresight from the Telangana government in maintaining growth momentum while addressing infrastructure demands.

The shift of India’s GCC landscape from traditional support functions to innovation-driven roles aligns well with broader trends prioritizing value creation through technology integration such as AI. This could possibly position India-and notably cities like Hyderabad-as pivotal players in the global technology ecosystem. However, sustaining this growth will require continuous investment into urban planning, skill development initiatives for local talent pools, and ensuring scalability across sectors vulnerable to rapid attrition or resource scarcity.Read More: Link