The latest report on Global Capability Centers (GCCs) by Nasscom and Zinnov has found that Hyderabad, along with Bengaluru, has become a top choice for global players to establish their GCCs in India. This is due to factors such as the availability of highly skilled talent, technological innovation, and a thriving startup ecosystem.
The report titled ‘India GCC Trends – Half Yearly Analysis H1CY2023’ reveals that Hyderabad and Bengaluru have an equal number of GCCs, with 11 each. These two cities have the highest number of new GCCs and centers of expansion for GCCs.
While Bengaluru leads in terms of new GCCs, Hyderabad leads in the expansion of GCC centers. In the first half of 2023, Bengaluru saw the establishment of eight new GCCs, compared to seven in Hyderabad out of the total 18 new GCCs in the country during H1 of 2023.
Several companies such as BlackBerry, CyberArk, Storable, and Align Technology established their GCCs in Hyderabad in Q1 of 2023, while Mondee Holdings, Lloyds Banking Group, and Inspire Brands set up their GCCs in Q2 of 2023.
Hyderabad, along with Pune, witnessed the expansion of four established GCC centers each during H1 of 2023, compared to three in Bengaluru. Omni Design and Bristol Myers Squibb expanded their GCCs in Hyderabad in Q1 of 2023, while London Stock Exchange Group and TechnipFMC expanded their GCCs in the city in Q2 of 2023.
Interestingly, Bengaluru, which was previously the preferred choice for housing GCCs in India, is now losing ground to other cities, with 55% of the new GCCs being established in other cities during H1 of 2023.
The report highlights that as of FY2023, India has 1580 GCCs, employing around 1.66 million talented professionals and contributing to a market size of $46 billion. The GCC sector is experiencing a compounded annual growth rate of 11.4%.
Nasscom-Zinnov states that GCCs are increasingly functioning as essential technology hubs for their headquarters, specializing in niche skills such as 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).
