Hyderabad, India, has solidified its position as a premier global services destination, driven by its exceptional talent pool, advanced technological infrastructure, and robust government support, according to Everest Group.
The city’s remarkable progress has caught the attention of numerous Global Capability Centers (GCC), showcasing its resilience and growth over the past couple of years. Recent data reveals that Hyderabad has outperformed Bangalore, traditionally the leader in this sector, by establishing more GCC delivery setups during the first half of 2023, Parul Jain, Vice President and Kanishka Chakraborty, Senior Analyst at Everest Group, said in the report.
Historically, Bangalore had dominated the global services delivery landscape in India since the 1990s. However, Hyderabad, along with other tier-1 Indian cities like Delhi NCR, Mumbai, and Pune, has been making significant strides in the sector’s growth. In a significant shift, Hyderabad took the lead in GCC setup activity in H1 2023, as more than 40 global corporations expanded their Acceleration Centers, Centers of Excellence (CoEs), Centers of Innovation, and R&D facilities within the city.
This growth is reflected in the surge of technology-related jobs in Hyderabad. The city’s share of tech jobs, as a percentage of India’s total technology employment, increased from 33 percent to an impressive 44 percent between 2021 and 2022. Simultaneously, the demand for non-tech services continues to rise, indicating strong investor confidence in Hyderabad’s capabilities.
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Traditionally recognized for its dominance in the pharmaceutical sector, Hyderabad’s appeal now extends beyond this industry. Fortune 500 giants from diverse sectors such as aerospace, manufacturing, retail, pharmaceuticals, and professional services have been drawn to the city’s offerings. This diversity extends not only to industries but also to the wide array of services being provided to clients worldwide.
Global corporations have recognized Hyderabad’s future-ready potential. These enterprises are concentrating on delivering advanced services such as animation, Artificial Intelligence (AI), cloud computing, Internet of Things (IoT), Machine Learning (ML), Natural Language Processing (NLP), Robotic Process Automation (RPA), visual effects (VFX), Augmented Reality (AR), and Virtual Reality (VR). This tech-savvy approach positions Hyderabad as a hub for innovation and cutting-edge solutions.
The key to Hyderabad’s success lies in its winning formula: a combination of high-quality talent and world-class infrastructure. The city’s educational institutions, including renowned names like ISB, IIIT, and BITS Pilani, have nurtured a skilled talent pool that has driven growth across multiple industries. Collaborative initiatives, such as the postgraduate diploma program offered by IMT Hyderabad and HCL Technologies, aim to further enhance skill development and talent pipeline.
Hyderabad’s state-of-the-art infrastructure, including an expanding metro rail system and well-developed road networks, has significantly improved accessibility and commuting. This stands in contrast to Bangalore’s higher cost of living and notorious traffic congestion. As Hyderabad offers an affordable lifestyle without compromising quality, it continues to attract businesses and professionals alike.
In summary, Hyderabad’s rise as a global services powerhouse, surpassing Bangalore in GCC setups, is attributed to its high-quality talent pool, futuristic infrastructure, and a diverse range of industries and services. The city’s winning formula and commitment to growth bode well for its continued success on the global stage.