LinkedIn
Email
Facebook
WhatsApp
Pinterest
Bengaluru and Hyderabad: Leading Hubs for Global Capability Centers (GCCs)
Skilled Tech Talent: Both cities have a large and affordable pool of skilled tech workers.
- Hyderabad is home to major tech campuses for companies like Amazon, Google and Microsoft.
- This attracts MNCs and stimulates local economies in surrounding areas like Shamshabad, Thukkuguda and Maheshwaram.
- Hyderabad, in particular, has scalable and flexible properties to meet GCC needs.
- The average GCC office lease in these cities is around 130,000 square feet.
- This drives real estate development in surrounding areas.
- Incentives include tax benefits, simplified regulations, and world-class infrastructure.
- The city also offers a high standard of living, affordable housing and good healthcare and education.
- This attracts professionals and drives urban expansion.
Bengaluru and Hyderabad have emerged as top destinations for Global Capability Centers (GCCs), transforming into major global business hubs. GCCs are offshore centers for multinational companies, providing critical support in IT, customer service, and back-office operations. In recent years, both cities have accounted for over 60% of office leasing in India’s GCC sector, making them attractive locations for multinational corporations (MNCs) looking to expand their global operations.
These cities offer a unique combination of advantages that position them at the forefront of India’s growing GCC market. Below are five factors that make Bengaluru and Hyderabad leading hubs for GCCs, and how this development benefits real estate and economic growth in Hyderabad’s surrounding areas, such as Shamshabad, Thukkuguda, and Maheshwaram.
1. Availability of Skilled Tech Talent
One of the key reasons Bengaluru and Hyderabad have attracted GCCs is their large pool of skilled and affordable tech talent. These cities boast well-established IT ecosystems, offering MNCs access to a highly qualified workforce. In particular, Hyderabad’s reputation as a tech hub has grown, with global giants such as Amazon, Google, and Microsoft setting up their campuses in the city.
The abundance of tech talent not only attracts MNCs but also stimulates the local economy. For instance, areas like Shamshabad, Thukkuguda, and Maheshwaram benefit from the spillover effects of these large corporations, as employees look for housing, services, and commercial amenities close to their workplaces. This has created a demand for residential real estate, driving up property values in these regions.
2. Integrated Commercial Real Estate Supply
Both Bengaluru and Hyderabad have abundant supplies of high-quality commercial real estate, which is crucial for meeting the growing demand from MNCs looking for large office spaces. Hyderabad, in particular, offers scalable and flexible commercial properties that can accommodate GCCs’ evolving needs. The average transaction size for GCC office leasing in these two cities is around 130,000 square feet, showcasing their capacity to handle large-scale operations.
This real estate boom has extended beyond the city limits into nearby areas like Shamshabad, Thukkuguda, and Maheshwaram. These regions, once considered peripheral, are now experiencing rapid development as they become prime locations for real estate investments. The construction of new office parks and integrated townships in these areas is further fueling demand for housing, retail, and hospitality projects.
3. Robust Complementary Ecosystem
Bengaluru and Hyderabad offer more than just office spaces and talent; they provide a thriving ecosystem that enhances the success of GCCs. These cities are home to tech startups, research institutions, and innovation hubs that encourage collaboration and drive business growth. Hyderabad, for example, has cultivated a strong biotechnology and pharmaceutical sector, complementing the IT and tech industries.
This robust ecosystem has helped attract foreign investments, fostering economic growth in Hyderabad and its surrounding regions. The development of infrastructure, such as the Hyderabad Pharma City near Maheshwaram and upcoming IT parks near Thukkuguda, is creating new opportunities for businesses to thrive. These developments also increase demand for commercial and residential real estate, contributing to the overall economic growth of these areas.
4. Favorable Business and Social Environment
Hyderabad’s pro-business policies and supportive regulatory framework make it an attractive destination for MNCs. The city offers incentives for companies looking to establish or expand their operations, such as tax benefits, simplified regulatory processes, and access to world-class infrastructure. Additionally, Hyderabad’s high standard of living, affordable housing, and excellent healthcare and education systems make it a preferred destination for expatriates and professionals.
As a result, the influx of GCCs into Hyderabad is driving urban expansion. Areas like Shamshabad, Thukkuguda, and Maheshwaram, with their proximity to the city center and Rajiv Gandhi International Airport, are becoming preferred residential destinations for professionals working in these centers. This has led to a surge in the development of gated communities, premium villas, and affordable housing projects, further boosting the real estate market.
5. Diverse Rental Options
Another key factor contributing to the growth of GCCs in Bengaluru and Hyderabad is the availability of diverse rental options. These cities offer a wide range of office spaces, from premium Grade A offices to more affordable options, allowing companies to scale their operations based on their requirements. The flexibility to choose from various rental options also helps companies manage costs effectively.
This flexibility has had a positive impact on the surrounding areas of Hyderabad. As businesses expand, the demand for additional office space grows, driving real estate development in nearby regions. Shamshabad, Thukkuguda, and Maheshwaram, with their expanding infrastructure, are becoming hotspots for commercial and residential real estate investments, providing affordable rental options for businesses and employees alike.
A Global Outlook: How GCC Growth Benefits Hyderabad and Beyond
The growth of GCCs in Hyderabad not only enhances the city’s global stature but also drives economic growth in its surrounding regions. As more MNCs establish their presence in Hyderabad, the demand for real estate in areas like Shamshabad, Thukkuguda, and Maheshwaram will continue to rise. This will lead to increased property values, greater investment opportunities, and improved infrastructure development, making these areas attractive for both domestic and international investors.
The ongoing development of Hyderabad’s infrastructure, including the expansion of the ORR and upcoming radial roads, will further enhance connectivity between the city and its suburban regions, facilitating the growth of residential and commercial real estate. The presence of GCCs also boosts job creation, leading to higher disposable incomes, which in turn stimulates retail, hospitality, and entertainment sectors.
Conclusion
Bengaluru and Hyderabad have established themselves as leading hubs for Global Capability Centers due to their skilled workforce, excellent commercial real estate supply, supportive ecosystems, and favorable business environments. As these cities continue to attract MNCs, the surrounding regions of Hyderabad, particularly Shamshabad, Thukkuguda, and Maheshwaram, will experience significant growth in real estate and infrastructure, positioning them as key contributors to Hyderabad’s global development.
