Hyderabad has emerged as India's leading destination for Global Capability Centres (GCCs), cementing its position as the country's preferred hub for multinational companies. A study published last week on India's GCC office market found that Hyderabad topped all major cities in GCC office rentals, overtaking established technology hubs such as Pune and Bengaluru. It also revealed that MNCs are willing to pay around 15% higher market rents for office space in Hyderabad than other occupiers, underscoring the city's growing appeal for high-value business operations.
Once known primarily as an IT outsourcing destination, Hyderabad has evolved into a global hub for innovation, where MNCs are setting up centres for AI, engineering, product development, R&D, cybersecurity, financial services and life sciences. Recognising the sector's growing importance, the state government has identified Global Capability Centres (GCCs) as a key pillar in its vision of building a $1 trillion economy by 2035. Hyderabad is now home to more than 450 GCCs, with the government aiming to attract another 100 this year.
What is a Global Capability Centre?
A GCC is a wholly owned offshore unit established by a multinational corporation to support its global business operations.
Initially, GCCs were largely responsible for back-office functions such as finance, accounting, customer support and IT services. Over the past decade, however, they have evolved into strategic innovation hubs where companies develop products, build software, conduct research, design AI models, strengthen cybersecurity, manage cloud infrastructure and create solutions for global markets.
Unlike outsourcing companies, which provide services to multiple clients, GCCs function as an extension of the parent organisation and play a direct role in shaping its global strategy.
Why are global companies choosing Hyderabad?
According to Telangana IT Advisor Sai Krishna, Hyderabad's success as a GCC destination rests on four key pillars—competitive costs, a deep talent pool, a globally experienced workforce, and a strong infrastructure and business ecosystem.
Compared with many international cities and several Indian metros, Hyderabad offers significantly lower operating costs while providing world-class office infrastructure. This enables multinational corporations to build large, high-value teams without compromising on quality.
The city also boasts one of India's strongest technology talent pipelines. Universities, engineering colleges and an established IT industry continue to produce professionals skilled in emerging fields such as AI, machine learning, cloud computing, data engineering and analytics.
Hyderabad has also witnessed the return of experienced Indian professionals from overseas, who are taking up leadership roles in GCCs. According to Sai Krishna, this influx of global talent has strengthened the city's leadership ecosystem and made it easier for multinational companies to recruit experienced specialists.
The city's well-developed IT corridors—including HITEC City, Gachibowli and the Financial District—along with a mature ecosystem spanning technology, healthcare, pharmaceuticals and financial services, further enhance its attractiveness as an investment destination.
How big is Hyderabad's GCC ecosystem?
It has expanded rapidly over the past decade and is now among the largest in India.
According to the Telangana government, the city hosts more than 450 GCCs and aims to attract another 100 this year.
Among companies that have established GCCs in the city are the world’s best-known: Microsoft, Wells Fargo, Marriott International, BASF, HCA Healthcare, UBS, Cigna, Vanguard, Deutsche Börse, Zurich Insurance, McDonald's, Sanofi, Novartis, AstraZeneca and DAZN.
These centres undertake functions ranging from software engineering and AI research to financial technology, pharmaceutical R&D, product development and advanced engineering.
How much investment have GCCs attracted?
Sai Krishna estimates that around 75 GCCs were established in Hyderabad last year, attracting cumulative investments of approximately ₹1.45 lakh crore.
However, the economic impact of GCCs extends well beyond direct investments. Beyond direct investment, GCCs also generate economic value by developing intellectual property, creating patents and commercialising new technologies.
This, in turn, attracts additional multinational companies, startups, venture capital and research collaborations, creating a virtuous cycle of investment and innovation.
Are more global companies looking at Hyderabad?
Yes. In recent months, Dutch brewing giant Heineken inaugurated its Asia-Pacific Global Capability Centre in Hyderabad. US biotechnology company Regeneron Pharmaceuticals announced plans to establish a GCC focused on artificial intelligence, data science, clinical trial operations and digital technologies. US-based digital manufacturing company Protolabs is setting up its India GCC in Hyderabad, while French pharmaceutical major Sanofi has announced a major expansion of its existing centre.
How do GCCs benefit Telangana?
The impact of GCCs extends far beyond employment generation. These centres create high-value jobs in engineering, AI, cybersecurity, finance, product development and scientific research while strengthening the State's innovation ecosystem. It is estimated that jobs in the IT sector, driven by GCC and MNC expansion, will surpass the 11-lakh-employee mark by the end of 2026.
Professionals trained in GCCs often move on to establish startups or join emerging technology firms, creating a multiplier effect across the economy.
Because GCCs span diverse sectors, they also deepen Telangana's domain expertise across multiple industries.
Healthcare companies develop medical technologies, pharmaceutical firms undertake drug research, financial institutions build global digital platforms, while engineering companies design products used worldwide.
What challenges does Hyderabad face?
One of the city's biggest concerns is ensuring adequate supply of highly specialised talent as demand for complex digital skills continues to grow.
The city also needs continued investment in public transport, urban infrastructure and Grade A office space to accommodate the next wave of multinational investments.
Industry experts believe addressing these issues proactively will be critical if Hyderabad is to retain its competitive edge against emerging GCC destinations in India and overseas.
What lies ahead?
The next phase of GCC growth is expected to be driven, apart from AI, by life sciences, semiconductor design, financial technology, digital engineering and advanced manufacturing.
GCCs have emerged from their back-office support avatars to become strategic hubs where MNCs design global products, conduct advanced research and lead technological innovation.
As high-value work continues to shift to India, Hyderabad appears well placed to remain a leading GCC destination. Sustaining that momentum, however, will depend on its ability to keep expanding its talent pool, infrastructure and innovation ecosystem.