Blog Details

The Rise of Global Competency Centres (GCCs) and Hyderabad’s Strategic Role

In the evolving global business landscape, Global Competency Centres (GCCs)—also known as Global Capability Centres or Captive Centres—have become critical engines of growth, innovation, and operational excellence. With multinational corporations increasingly seeking scalable, cost-effective, and high-quality talent hubs, India has emerged as a preferred destination. Among Indian cities, Hyderabad stands out as a rising star, offering a compelling blend of talent, infrastructure, and business-friendly policies.

What Are Global Competency Centres (GCCs)?

A Global Competency Centre is an offshore unit set up by a multinational enterprise to handle key business functions such as:

• IT services and software development
• Finance and accounting
• Human resources and payroll
• Legal and compliance
• Data analytics and AI
• R&D and innovation

Unlike traditional outsourcing, GCCs are wholly owned subsidiaries or extensions of the parent company, giving firms greater control, confidentiality, and alignment with corporate goals.

Why India is a Global Hub for GCCs

India currently hosts over 1,600+ GCCs, serving Fortune 500 and global enterprises across industries like technology, pharmaceuticals, finance, and retail. The key advantages include:

• Access to a large and skilled English-speaking workforce
• Cost efficiency compared to Western markets
• Strong capabilities in STEM, analytics, and digital transformation
• A mature ecosystem with professional services, real estate, and regulatory support

Hyderabad: The Emerging Powerhouse for GCCs

While Bengaluru and Pune have long been known for their tech dominance, Hyderabad has rapidly emerged as a high-potential location for Global Competency Centers, thanks to a confluence of strategic factors:

1. Robust Talent Pool

Hyderabad offers a rich talent base from top institutions like IIIT-H, ISB, and IIT-Hyderabad, producing thousands of engineering, management, and analytics professionals annually. The city also attracts lateral talent due to its livability and cost advantages.

2. Business-Friendly Policies

The Telangana state government has introduced industry-friendly initiatives such as the TS-iPASS single-window clearance system, promoting ease of doing business and faster operational set-up for GCCs.

3. Thriving Ecosystem

Hyderabad is home to several multinational GCCs including Microsoft, Amazon, Facebook, Novartis, Deloitte, and Qualcomm. The presence of these players creates a knowledge-sharing and innovation-driven ecosystem.

4. High-Quality Infrastructure

With modern tech parks like HITEC City, Knowledge City, and Genome Valley, Hyderabad offers world-class office spaces and connectivity. The Rajiv Gandhi International Airport (RGIA) further strengthens its global accessibility.

5. Lower Operating Costs

Compared to metros like Bengaluru and Mumbai, Hyderabad offers more affordable real estate and cost of living, making it an economically attractive option for long-term GCC operations.

Key GCC Functions Emerging in Hyderabad

Multinational companies are leveraging Hyderabad not just for back-office services but also for high-value, strategic work, such as:

• AI/ML-based product development
• Cybersecurity and digital risk
• Pharma R&D and clinical trials management
• Global legal and compliance support
• Finance transformation and robotics process automation (RPA)

Major GCC Operating in Hyderabad

1.Microsoft India Development Center (MSIDC)

• Scale & Contribution: With over 18,000 employees, MSIDC in Hyderabad is Microsoft’s largest software development center outside Redmond
• Role & Focus: Acts as a global R&D hub—driving product development, support, quality assurance, and strategic innovation.

2.Oracle Global Capability Centre – Hyderabad

Oracle India operates a substantial GCC in Madhapur/HITEC City, spread across multiple state-of-the-art campuses

Core Focus Areas:

• Developing enterprise and cloud applications
• Database engineering and Oracle Autonomous services
• R&D to support global product development and innovation

3.Amazon Global Campus & AWS Expansion – Hyderabad

• Largest single-campus building globally: Located in Gachibowli, spanning 3 million sq ft over 9.5 acres, with seating for 15,000 employees—Amazon’s largest owned building outside the U.S.
• Service Spectrum:
  • Software development, ML/AI, product management, cloud services (AWS), and fintech
  • Backend operations for global marketplaces and services

AWS Expansion: Amazon Web Services is further developing its data center network and AI-driven cloud infrastructure in Telangana, backed by state-level investment support

4.Google Safety Engineering Centre (GSEC) – Hyderabad

• Global Cybersecurity Hub: Google’s GSEC Hyderabad is its second safety engineering centre in APAC (after Tokyo) and fifth globally

Primary Mandate:

• Advanced cybersecurity research and AI-powered product safety
• Collaboration with global experts to develop secure, scalable internet services

5.Sanofi Global Capability Centre

• Investment & Growth: Sanofi is investing around €400 million, aiming to double its workforce from 1,000 to 2,600 by 2026.
• Role & Focus: Focuses on drug clinical-trial documentation, data science, and AI-driven pharma systems, increasing Hyderabad’s prominence in life sciences innovation.

6.Dai-ichi Life & Capgemini GCC

• First Overseas Center: A BOT-operated GCC established by Dai-ichi in partnership with Capgemini—their first center outside Japan—enhances operations across Japan, US, and Australia .
• Role & Purpose: Core functions include AI, data analytics, cybersecurity, and digital transformation to augment customer service and global processes.

7.Eli Lilly Global Capability Centre

• New Leadership Centre: Announced in 2025 as a strategic enhancement to Hyderabad’s GCC ecosystem
• Role & Functionality: Focuses on pharmaceutical R&D, data analytics, supply chain optimization, and global operations support.

8.Advance Auto Parts GCC

• Strategic GCC Hub: Their Hyderabad center is a global hub for auto-services transformation
• Role & Focus: Supports North American operations in IT, digital transformation, finance, and supply chain & customer-facing innovations.

9.Hexagon R&D Centre

• Innovation Powerhouse: The largest R&D GCC globally for Hexagon, with about 2,100 employees
• Role & Focus: Specializes in patentable software development, design engineering, and product innovation in digital transformation.

10.Marriott International Tech Accelerator

• Hospitality Tech Innovation: Marriott’s first GCC in India is being launched in Hyderabad in early 2025
• Role & Focus: Dedicated to global tech infrastructure, including travel‑tech innovation, digital customer solutions, and hospitality analytics.

 

Hyderabad’s GCC Strengths & Ecosystem

• Diverse sectoral presence: From IT and engineering to life sciences and hospitality, Hyderabad’s GCCs are deeply embedded in high-value, specialized areas
• Robust knowledge pool & innovation: With over 355 GCCs employing 300,000+ professionals, the city is India’s second-largest GCC hub after Bengaluru
• Policy & infrastructure strengths: Supportive Telangana policies (like TS‑iPASS), modern tech parks (e.g., HITEC City), and proactive state initiatives fuel GCC expansion.

 Why These GCCs Choose Hyderabad

1. High-quality talent from premier institutes (IIIT‑H, ISB)
2. Cost-effective, scalable operations with world-class infrastructure
3. Collaborative innovation ecosystems, including T-Hub and STPI
4. Sector-ready support in AI, pharma, R&D, fintech, and hospitality

Refer: Nasscom  article https://community.nasscom.in/communities/gcc/nasscom-gcc-playbook-telanganas-blueprint-growth

Future Outlook

With India poised to attract over $50 billion in GCC investments in the coming years, Hyderabad is well-positioned to take a leading share. The government's continued investment in infrastructure, education, and digital readiness, combined with the city’s growing reputation as a talent hub, makes it a top-tier destination for next-generation GCCs.

 

 How A2 Consultants Can Help

At A2 Consultants, we specialize in helping global businesses set up and scale their operations in India, including:

• Subsidiary incorporation & structuring
• FEMA & regulatory compliance
• Talent strategy & advisory
• Transfer pricing & tax planning
• Governance, payroll & operational support

We empower global firms to establish and scale their GCCs efficiently in Hyderabad or other Indian cities.

A2consultants Indian Business Companion is also available on ChatGPT, making it more accessible for Professionals, Businesses, and Foreign Entities  seeking insights into the intricate tax challenges  you can acess from this link

Book a Free consultation 

https://chatgpt.com/g/g-6865f276fc1c8191b467aa48f145a369-a2consultants-india-business-companion.

Scan Here to Know More with ChatGPT