How Hyderabad Is Surpassing Bengaluru as India’s Top Hub for Global Capability Centres

India has firmly established itself as a global hotspot for offshore operations, with more multinational companies choosing the country to set up high-value strategic hubs. Over the past few years, a striking shift has emerged. Hyderabad is increasingly becoming the preferred destination for Global Capability Centres, surpassing Bengaluru’s traditional dominance. Backed by competitive costs, strong talent availability, progressive governance, and world-class infrastructure, Hyderabad is now shaping itself into a powerhouse for global enterprises seeking innovation-led growth.

In this article, I break down the reasons behind Hyderabad’s rapid rise and why it is outpacing Bengaluru in attracting next-generation Global Capability Centres.

Cost Advantage: Hyderabad Offers More Value for Global Firms

One of the biggest factors driving the shift is Hyderabad’s substantial cost advantage. Office rentals in many emerging micro-markets continue to be priced under $1 per sq ft, making it one of the most cost-effective office destinations among India’s major metros. Commercial leasing in the Financial District ranges between ₹60–70 per sq. ft., while portions of Hitec City fall in the ₹110–130 per sq. ft. bracket.

Compared to Bengaluru, where rentals are significantly higher and availability in key micro-markets is limited, Hyderabad offers scalability without the price pressure. For Global Capability Centres, which operate large, high-density office setups, this differential translates into millions of dollars in annual savings.

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Skilled and Abundant Workforce Fuels GCC Expansion

The depth and diversity of Hyderabad’s talent pool have become one of its strongest advantages. The city attracts a large migrant workforce and has a strong base in technology, pharmaceuticals, life sciences, BFSI, and engineering. Companies now value cities where they can seamlessly hire for cross-functional roles, and Hyderabad delivers exactly that.

This multi-sector talent availability gives Global Capability Centres the ability to scale advanced functions such as AI, machine learning, product development, analytics, and engineering services without facing the saturation seen in Bengaluru’s more mature micro-markets.

World-Class Infrastructure and Seamless Connectivity

Hyderabad offers one of India’s most robust physical and digital infrastructures. With specialised hubs like HITEC City, Gachibowli, Genome Valley, and the Financial District, it presents an ecosystem specifically designed for enterprise needs.

The city’s airport access, well-planned road network, power surplus, and readiness of commercial real estate add to its appeal. Bengaluru, in comparison, struggles with infrastructure bottlenecks and congestion factors that companies can no longer overlook when choosing strategic locations for their Global Capability Centres.

Progressive Governance Supporting High-Value Growth

Telangana’s proactive governance model has played a significant role in Hyderabad’s rise. The state has introduced investor-friendly policies and is currently working on frameworks designed to push Global Capability Centres into more value-driven, innovation-led capabilities.

This includes enabling R&D-focused operations, advanced analytics, cloud computing, and next-generation engineering functions. The government’s approach of building long-term partnerships with enterprises has been particularly effective in drawing high-quality investments.

Global Giants Strengthening Hyderabad’s GCC Ecosystem

Hyderabad’s GCC ecosystem has expanded rapidly with the entry of global heavyweights across multiple sectors. Today, the city hosts around 70 Global Capability Centres, and this number continues to rise.

Some notable names include:

• L’Oréal, establishing one of its largest global centres
• Netflix, expanding its tech and analytics operations
• Costco, building a large technology centre
• McDonald’s, launching its biggest office outside the US
• Eli Lilly, investing heavily in manufacturing and quality operations
• Google, Amazon, JP Morgan, and several others are expanding their existing centres

This influx spans industries such as manufacturing, FMCG, engineering, renewable energy, pharmaceuticals, technology, hospitality, and BFSI creating a diversified and resilient GCC ecosystem.

India’s GCC Surge and Hyderabad’s Rising Share

India currently hosts over 1,700 Global Capability Centres, generating nearly $65 billion in annual revenue and employing over 1.9 million people. According to industry data, this sector is expected to reach the $100 billion mark by 2030, employing over 2.5 million professionals.

What stands out is Hyderabad’s rising dominance. The city has captured nearly 40% of new greenfield GCC setups in the last three years. Nearly 45% of Hyderabad’s office space demand in recent months has been attributed to GCCs, reflecting their overwhelming preference for the city.

What Industry Leaders Are Saying

Industry experts consistently highlight a set of common advantages that make Hyderabad the new GCC hotspot:

• Anshuman Magazine (CBRE) emphasises talent availability, scalability, and infrastructure readiness as decisive factors.
• Raja Seetharaman (Propstack) points to the city’s strong digital ecosystem and diversification across major sectors.
• Vimal Nadar (Colliers India) highlights that nearly half of Hyderabad’s office demand is being driven by Global Capability Centres.
• Joseph Thilak (Knight Frank) notes that rentals under $1 per sq. ft. and Hyderabad’s multicultural talent pool give it an edge.
• Veera Babu (Cushman & Wakefield) stresses that Hyderabad offers 15% lower operating costs than Bengaluru, while matching its tech ecosystem.

These insights reflect a strong market consensus: Hyderabad has become the preferred destination for companies seeking future-ready GCC locations.

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Why Hyderabad Is Pulling Ahead of Bengaluru

While Bengaluru continues to be a major technology powerhouse, several factors have contributed to Hyderabad’s current momentum:

• Bengaluru’s micro-markets are approaching saturation, especially in premium tech corridors.
• Talent competition in Bengaluru is intense, leading to higher attrition and salary escalation.
• Hyderabad offers modern commercial supply with room for expansion, allowing firms to plan long-term growth.
• Operating costs are significantly lower, enhancing cost-efficiency for firms setting up large Global Capability Centres.
• The city’s infrastructure is more balanced, reducing friction for both companies and employees.

Together, these factors have tilted the preference scale towards Hyderabad, positioning it as a strategic alternative rather than a secondary choice.

Conclusion

Hyderabad’s rise as India’s leading destination for Global Capability Centres is the result of a well-balanced combination of cost-effectiveness, deep talent availability, global-grade infrastructure, and proactive governance. As more multinational companies prioritise innovation, scalability, and long-term growth, Hyderabad has emerged as the city best positioned to meet those demands.

With a diverse GCC ecosystem, strong real estate pipeline, and supportive policy framework, Hyderabad is set to lead the next phase of growth in India’s high-value enterprise sector, firmly establishing itself as a global hub for strategic and technology-led operations.