Here’s why Hyderabad is outpacing Bengaluru in attracting Global Capability Centres

With more than 70 Global Capability Centres (GCCs) of companies such as Netflix, Eli Lilly, Costco and McDonald’s, now operating in Hyderabad, the city continues to cement its position as a global hub for enterprise innovation. Adding to this momentum, Hyderabad has reportedly attracted the GCC of French beauty major L’Oréal, the world’s largest cosmetics company.

Hyderabad is attracting a record number of GCCs, driven by its skilled and abundant workforce, under a dollar office rent, progressive government policies, world-class infrastructure, strong digital connectivity and a diversified sector base spanning pharma, technology, BFSI and life sciences. The city has outpaced Bengaluru in recent years, capturing nearly 40% of new greenfield GCC setups in India over the past three years, say real estate experts.

These factors are drawing global firms across technology, financial services, engineering and manufacturing, hospitality, and life sciences. In addition, policy frameworks currently in advanced stages of formulation are expected to incentivise GCCs to expand their real estate footprint in the city and accelerate capabilities in research, product development, advanced analytics, artificial intelligence, machine learning, drawing global firms across technology, financial services, engineering, and cloud computing, they said.

GCCs, also known as global in-house centres or captives, are offshore units of large multinationals that handle technology, analytics, operations and other strategic functions.

In July, reports indicated that retail giant Costco would establish its first GCC in the city to handle technology and research functions. The centre will start with 1,000 employees and expand over time.

Pharmaceutical major Eli Lilly has also announced plans to invest over ₹9,000 crore in Telangana over the next several years, primarily in new contract manufacturing. As part of this strategy, the company will set up a manufacturing plant and a quality centre in Hyderabad to support its India-based supply chain, a media report said.

American fast-food giant McDonald also inaugurated its first India GCC, referred to as its Global Office, in Hyderabad. Spread across 1.56 lakh sq ft in Hitec City and with the capacity to seat 1,500 employees, it is McDonald’s largest centre outside the US and will serve as a global hub for innovation and enterprise operations.

Also Read: ₹1.4 crore monthly rent”>McDonald’s leases office space in Hyderabad for ₹1.4 crore monthly rent

According to KPMG in India, GCCs today handle complex, high-value functions that directly contribute to revenue and serve as strategic hubs for innovation, analytics and operations. India’s appeal as a GCC destination extends beyond cost advantage, strengthened by its robust digital ecosystem, skilled talent pool and a pro-business policy environment. The total number of GCCs in India rose to more than 1,700 in FY24, operating over 2,975 centres. They generated an estimated $64.6 billion in revenue and employed over 1.9 million people. By 2030, the GCC market is expected to reach around $100 billion, with the workforce projected to exceed 2.5 million, according to KPMG India.

Also Read: US firms expand office leasing footprint in India; GCCs account for over two-thirds of activity

Hyderabad is attracting a record number of Global Capability Centres (GCCs) primarily due to its skilled and abundant workforce, progressive and supportive government policies, world-class infrastructure including SEZs and digital connectivity, and a diversified sector presence that includes pharma, tech, BFSI, and life sciences, said Raja Seetharaman, co-founder of Propstack.

Telangana’s strategic initiatives aim to shift Hyderabad’s GCC focus from outsourcing to value and innovation-driven operations, promoting sustainable high-value growth in the sector, he said.

According to Vimal Nadar, National Director and Head of Research at Colliers India, during the first nine months of 2025, office leasing activity in India totalled 50.9 million sq. ft., with GCCs accounting for nearly 20 million sq. ft. of Grade A space uptake. Interestingly, Hyderabad has emerged as one of the frontrunner cities, and around 45% of the city’s 6.4 million sq ft. office space demand was driven by GCCs.

“Its appeal lies in competitive rentals, a strong talent pool, and ongoing infrastructure development, attracting global firms across various sectors, including technology, financial services, engineering and manufacturing, hospitality, and life sciences,” he said.

Hyderabad now hosts around 70 GCCs, a number that is drawing attention as Bengaluru approaches saturation in certain sectors. This makes Hyderabad a natural alternative for companies looking to expand beyond Bengaluru. Commercial leasing in Hitech City ranges between ₹110–130 per sq. ft., while the Financial District sees rates around ₹60–70 per sq. ft. This combination of affordable, high-quality real estate and a deep talent pool allows companies to outsource functional operations such as finance, payroll, and other services efficiently, he said.

The city’s power surplus, robust social infrastructure, and supportive ecosystem further enhance its appeal. Key sectors benefiting include BFSI, technology, FMCG, and semiconductors, with major players such as Google, Amazon, McDonald’s, Pepsi, and JP Morgan establishing a presence. Hyderabad’s competitive rentals, high-quality commercial spaces, and ready access to skilled talent make it an increasingly preferred hub compared with Bengaluru, he said.

Veera Babu, Executive Managing Director, Tenant Representation, Cushman & Wakefield, said that post-pandemic, Hyderabad has rapidly emerged as a high-potential hub for business and talent. The city benefits from a deep and diverse pool of local and national talent, robust infrastructure, and a cosmopolitan environment that attracts companies from around the world. Its quality commercial real estate, spanning IT corridors and specialized hubs such as HITEC City, Gachibowli, Genome Valley, and the Financial District, continues to strengthen its appeal.

Compared with established office markets like Bengaluru and Delhi NCR, Hyderabad offers meaningfully lower operating and real-estate costs. Certain micro-markets provide an ecosystem on par with Bengaluru, while overall costs remain roughly 15% lower. This value proposition has made the city especially attractive to Global Capability Centres (GCCs) and mid-sized enterprises seeking a cost-effective alternative to India’s more expensive metros, he said.

Over the last 18 months, nearly 40 companies across sectors have set up operations in the city. New entrants include players in manufacturing, engineering, hospitality, BFSI, renewable energy, and packaging, among them names such as Goodyear and Vanguard. Global firms including American Airlines, Southwest Airlines, Netflix, Costco, Inspire Brands, Haworth, T-Mobile, Sonatype, L’Oréal , McDonalds, Amazon, Carlsberg, Heineken, and Land O’Lakes have also expanded or established new centres.

This momentum is further supported by strong activity in fintech, FMCG, agriculture, food processing, and process automation, industries drawn by Hyderabad’s skilled workforce and the opportunity to build new capabilities, he added.