Hyderabad Races to Challenge Bangalore’s GCC Lead
The Telangana government has signed a memorandum of understanding (MoU) with the US Chamber of Commerce’s US India Business Council (USIBC), aiming to focus on collaboration in IT, AI, electronics and global capability centers (GCCs). Sridhar Babu Duddilla, Telangana’s IT minister, took to X to call Telangana “a global leader in innovation” and said, “This MoU is a major milestone in deepening our partnership with the US.” He went on to add that the Telangana government participated in the industry roundtable on AI and GCCs, further solidifying Telangana and Hyderabad’s position as a global technology hub. “Our collaboration is focused on driving investment, fostering innovation and generating employment opportunities creating a future dominated by AI and GCCs,” Duddilla added. As per the GCC policy, over 980 new GCC units have been set up in tier-I cities, with Bengaluru leading with over 875 GCC units, followed by NCR, Hyderabad, Pune, and Mumbai. Notably, tier-II and tier-III cities are also attracting new setups due to cost advantages and emerging talent pools. Bengaluru VS Hyderabad GCC Fight Bengaluru has the highest concentration of GCCs, with over 875 GCC units, and is a vital hub for global business operations. While Bengaluru will continue to be the hub for new GCCs, the Karnataka government is aiming to replicate the efficiency and success of the city in other parts of the state. As per AIM Research, GCCs employ over 2.2 million people in India, with major hubs in Bengaluru, Hyderabad, and Mumbai. Bengaluru’s large share (34%) highlights its position as India’s top hub for GCCs, supported by its strong IT industry, skilled workforce, and good infrastructure. A Reddit user, who has been to both Bengaluru and Hyderabad,  said, “Bengaluru>Hyderabad when it comes to tech overall. The only thing threatening to Bengaluru is [that] it is getting saturated, and the government isn’t fast enough to tackle or expand…its infrastructure. Hyderabad’s HITEC City is solely dedicated to tech and [has] lots of scope to expand infra if required.” Meanwhile, another person pointed out that about 25% of all office buildings in Hyderabad are empty. “There are just mindlessly constructing office blocks, but demand is low. Don’t get fooled by fancy…glass buildings; there’s a good chance that the block may never get occupied at all.” Recently, Warner Bros. took to LinkedIn to announce the opening of its new office in Hyderabad. Earlier this year, Flutter Entertainment, a global leader in online sports betting and iGaming, inaugurated a new GCC in Hyderabad, signalling a significant investment in the country’s skills market. “The Hyderabad GCC is designed to foster creativity and growth, further strengthening our presence in the Indian employment and skills market,” said Phil Bishop, chief operating officer at Flutter Entertainment. Overall, GCCs in India are focusing on talent retention, niche resource partnerships, expansion to more centres in different cities, and tier-II city interests. With a thriving startup ecosystem, India offers GCC startup collaboration for innovation.
GCCs employ over 2.2 million people in India, with major hubs in Bengaluru, Hyderabad, and Mumbai.
GCCs employ over 2.2 million people in India, with major hubs in Bengaluru, Hyderabad, and Mumbai.
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Shalini is a senior tech journalist, exploring the latest advancements in AI. When she's not reporting on the latest innovations, you can find her immersed in her next literary adventure.