Introduction: Hyderabad’s Meteoric Rise as a Global GCC Hub

Hyderabad has rapidly transformed into a powerhouse for Global Capability Centers (GCCs), with its share of India’s GCCs soaring to an impressive 19% in 2024. According to a Deccan Chronicle report, this growth is fueled by a surge in investments from global professional services and technology firms, robust talent availability, and a thriving business ecosystem. As companies look to scale their operations and leverage India’s skilled workforce, Hyderabad stands out as a strategic destination for establishing and expanding GCCs.

What Are Global Capability Centers (GCCs)?

Global Capability Centers, formerly known as Global In-house Centers (GICs), are offshore units set up by multinational corporations to deliver a wide range of services such as IT, finance, engineering, analytics, and professional services. GCCs play a pivotal role in driving innovation, operational efficiency, and digital transformation for their parent organizations. India, with its vast talent pool and cost advantages, has emerged as the global leader in hosting GCCs, and Hyderabad is now at the forefront of this revolution.

Hyderabad’s GCC Growth Story: Key Highlights from 2024

• Hyderabad’s share of India’s GCCs has grown to 19% in 2024, up from 15% in 2022, as per the Deccan Chronicle.
• Over 150 global firms have established or expanded their GCC operations in Hyderabad in the last 18 months.
• Hyderabad is now home to GCCs of leading professional services, technology, BFSI, pharma, and engineering companies.
• The city’s robust infrastructure, government support, and deep talent pool are key enablers for this growth.

Why Are Global Firms Choosing Hyderabad for GCCs?

The decision by global firms to scale operations in Hyderabad is driven by several strategic factors:

1. Talent Availability: Hyderabad boasts a highly skilled workforce, with over 650,000 professionals in IT and allied sectors. The city’s universities and technical institutes produce 100,000+ STEM graduates annually, ensuring a steady supply of talent for GCCs.
2. Cost Advantage: Operational costs in Hyderabad are 10-15% lower than other metros, making it attractive for firms seeking efficiency without compromising quality.
3. Business Ecosystem: Hyderabad’s proactive government policies, world-class infrastructure, and ease of doing business have fostered a thriving ecosystem for global firms.
4. Quality of Life: The city offers a cosmopolitan lifestyle, affordable housing, and excellent connectivity, making it a preferred destination for relocating talent and expatriates.

Recent Research: Hyderabad’s GCC Momentum in 2024

Recent industry research underscores Hyderabad’s growing dominance in the GCC landscape. According to the NASSCOM GCC Trends Report 2024:

• India hosts over 1,580 GCCs, employing more than 1.66 million professionals.
• Hyderabad’s GCC headcount has grown at a CAGR of 14% over the past three years, outpacing Bengaluru and Pune.
• Professional services and technology firms account for 60% of new GCC investments in Hyderabad.
• GCCs are moving up the value chain, focusing on digital transformation, AI, analytics, and product engineering.

Further, a Deloitte India GCC Survey 2024 highlights that Hyderabad is the top choice for new GCC setups among professional services firms, owing to its talent depth, innovation ecosystem, and favorable regulatory environment.

Professional Services Companies: The Next Wave of GCC Expansion

While technology and BFSI sectors have traditionally led GCC investments, 2024 has seen a surge in professional services firms establishing and scaling their global capability centers in Hyderabad. These include leading audit, consulting, legal, and business process management firms seeking to leverage Hyderabad’s:

• Access to specialized talent in finance, analytics, legal, and consulting domains.
• Advanced digital infrastructure and secure work environments.
• Collaborative ecosystem with academia, startups, and industry bodies.
• Ability to deliver high-value, client-facing services from India.

Professional services GCCs are increasingly focusing on innovation, digital transformation, risk management, and regulatory compliance, making Hyderabad an ideal location for their global operations.

Han Digital: Shaping Talent Strategies for GCC Success in Hyderabad

As global firms navigate the complexities of establishing and scaling GCCs in Hyderabad, Han Digital emerges as a strategic partner with its deep expertise in talent markets and strong connections with senior leadership across industries.

Han Digital’s Unique Value Proposition:

• Comprehensive Talent Intelligence: Han Digital leverages proprietary research and analytics to map Hyderabad’s talent landscape, helping global firms identify, attract, and retain top professionals for their GCCs.
• Leadership Hiring Expertise: With established relationships with CXOs and senior leaders, Han Digital ensures GCCs have access to visionary leadership critical for driving transformation and innovation.
• Tailored Talent Solutions: From workforce planning to employer branding, Han Digital offers end-to-end talent solutions customized for professional services and technology GCCs.
• Market Entry Advisory: Han Digital guides global firms through the nuances of Hyderabad’s talent market, compensation benchmarks, and regulatory landscape, enabling seamless GCC setup and expansion.

In 2024, Han Digital has supported several Fortune 500 companies and leading professional services firms in building high-performing GCC teams in Hyderabad, reinforcing the city’s reputation as a global talent magnet.

Case Studies: Leading Firms Scaling GCCs in Hyderabad

Several global firms have recently announced significant GCC expansions in Hyderabad:

• Deloitte: Opened its largest global delivery center in Hyderabad, focusing on analytics, risk advisory, and digital transformation.
• Ernst & Young (EY): Expanded its GCC to support global audit and consulting operations, leveraging Hyderabad’s finance and analytics talent.
• Novartis: Established a digital innovation hub in Hyderabad to drive healthcare analytics and AI initiatives.
• HSBC: Scaled its technology and operations GCC, making Hyderabad a key global hub for digital banking and cybersecurity.

These investments underscore Hyderabad’s growing clout as a preferred destination for high-value, knowledge-driven GCCs.

Future Outlook: Hyderabad’s GCC Share Set to Surge Beyond 2025

Industry experts predict that Hyderabad’s share of India’s GCCs will continue to rise, potentially surpassing 22% by 2025. Key drivers include:

• Continued investments from global professional services and tech firms.
• Increased focus on digital, AI, and product engineering capabilities.
• Government initiatives to foster innovation and ease of doing business.
• Growing collaboration between academia, startups, and GCCs.

Hyderabad is also emerging as a hub for next-generation GCCs in areas such as ESG (Environmental, Social, and Governance), cybersecurity, and digital health, opening new avenues for global firms to innovate and scale operations from India.

Best Practices for Professional Services Companies Establishing GCCs in Hyderabad

For professional services firms planning to establish or expand GCCs in Hyderabad, the following best practices are recommended:

1. Leverage Local Talent Intelligence: Partner with talent experts like Han Digital to gain real-time insights into Hyderabad’s talent pool, compensation trends, and leadership availability.
2. Invest in Leadership and Culture: Build strong local leadership teams and foster a culture of innovation, collaboration, and inclusion to attract and retain top talent.
3. Focus on Digital and Analytics: Prioritize digital transformation, automation,