Hyderabad overtakes Bengaluru as India’s top GCC hub
Hyderabad has surged ahead as the premier destination for Global Capability Centres (GCCs) in India, a study by Nasscom and ZInnov finds.
This intensifies its competition with Bengaluru.
The study, “India GCC Trends – Half Yearly Analysis H1CY2023,” highlights the factors propelling Hyderabad to the forefront.
It includes a highly skilled talent pool, technological innovation, and a thriving startup ecosystem.
As of the first half of 2023, Hyderabad and Bengaluru were neck and neck with 11 GCCs each.
This makes them the cities with the most new GCCs and expansions.
Bengaluru did have an edge in new GCCs, with eight established in the first half of 2023.
It’s compared to Hyderabad’s seven out of 18 new GCCs nationwide during the same period.
However, Hyderabad and Pune led in expanding existing GCCs, with four each compared to three in Bengaluru.
A notable shift is the diminishing dominance of Bengaluru, traditionally the preferred choice for hosting GCCs in India.
55 percent of the new GCCs established in the first half 2023 were in cities other than Bengaluru.
The report reveals that 83 percent of the 18 new GCCs established in H1 2023 have all three functional areas: engineering R&D, IT, and BPM (business process management).
India boasts over 1580 GCCs as of FY2023, employing around 1.66 million skilled professionals.
Total market of $46 billion
The country represents a total market size of US$46 billion, with a compound annual growth rate of 11.4 percent, per the report.
The study underscores that GCCs have evolved into core tech hubs specializing in areas.
These are Cloud, Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), Cybersecurity, Low Code/No Code (LC/NC), Advanced Analytics, Blockchain, and Internet of Things (IoT).
Indian GCCs not only incubate digital enablement but also handle end-to-end digital requirements for their parent organizations.
These centres focus on emerging technology domains such as data science, data analytics, digital innovation, web applications, platform engineering, automation, and software development.
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Sukanya Roy, Head of GCC and BPM at Nasscom, noted India’s commitment to domain expertise and sustainable practices, positioning the country as a premier hub for GCCs.
She said: “This robust ecosystem not only strengthens India’s tech industry but also fosters deep-seated collaborations with start-ups, educational institutions, and external partners to leverage India’s state-of-the-art technologies and drive innovation for their HQ organizations.”
The study also identified seven key pillars supporting the growth of the GCC ecosystem in India.
It includes generative AI, engineering excellence, digital prowess, global business services, global leadership, networked globalization, and India’s new talent pool.