- First MNC in India in 1985
- First software company entered Pune in 1992
- In the first half of 2023, Hyderabad witnessed immense growth
- Job opportunities will increase
- Increasing demand for the real estate sector
King Johnson Koyyada : Hyderabad is gradually overtaking Bengaluru in attracting GCCs (Global Capability Centres), as per Cyril research latest report. The main reason for this is that Hyderabad attracted more GCCs compared to Bengaluru in the first half of 2023. What are the real GCCs? When did these enter our country? What is the benefit of these for Hyderabad? What is the benefit to the real sector with the arrival of these?
It can be said that the GCC is an offshore center. That is, foreign companies set up offices in Hyderabad to carry out their activities. These can be described as world-class organizations. Activities such as IT services, research, development, and customer support related to foreign companies are conducted from Hyderabad. For example, GCCs can be said to run the activities of an American company from Hyderabad. These are not new to our country. It started in 1980 and has been widespread since 1990. General Electric, Citigroup, and American Express are examples of this. These are the backbones of the Indian IT and business services industries. Since the last decade, innovative innovations have taken place in relation to these services.
Market strategy?
It is noteworthy that 50 percent of the GCCs in the world belong to India. Till now, there have been about 1580 institutions, and their number is increasing. By 2025, this number will reach 1900, and by 2030, it will reach 2400, Cyril’s organisation predicts. In the next five years, their value is likely to reach around 60–85 billion US dollars. That is, remember that even then, the Fortune 500 companies of the world will be in our country.
* Due to new discoveries, the number of GCCs in our country has increased from 2012 to 2023. Currently, 19 lakh employees are working in these. This number is likely to reach 45 lakh. From 2018 to 2023, a growth rate of 12.1 percent has been registered in this sector. It is expected to grow by around 14 percent from 2023 to 2030.
Where are we in the GCC?
Six cities in our country are in favour of setting up GCCs. Bengaluru, Delhi NCR, Delhi, Gurugram, Hyderabad, and Pune are the major ones. With the availability of infrastructure, a talent pool, a supporting ecosystem, etc., setting these up has become easy. GCCs are set up in an area of about 203 million square feet. It is noteworthy that 55 percent of these are in Bengaluru and Hyderabad. These companies are in the forefront of entering the second-tier cities of the country as well. Visakhapatnam, Jaipur, Vadodara, Kochi, Bhubaneswar, and Chandigarh are attractive. After all, Chennai and Coimbatore in Tamil Nadu are likely to become GCC hubs in the coming days.
Why Hyderabad?
There is no shortage of youth who studied in Hyderabad. Infrastructure is developing better. Hyderabad has many international educational institutes like ISB, Triple IT, and BITS Pilani. Most IT employees from Hyderabad and surrounding areas are working in various organizations. Lakhs of engineers complete their education in Telangana every year. Half of them are working in other metro cities as well.
Hyderabad has made significant progress in attracting international organisations in the last two years. GCCs like Microsoft, Google, Amazon, Apple, Wells Fargo, Bank of America, HSBC, Franklin Templeton, Brandridge, ADP, JP Morgan, Novartis, and Deloitte are already present in Hyderabad.
* In the last five to seven years, DBS Bank, Pepsi, Chubb, Massmutual, Goldman Sachs, Swiss RE, Advance Auto Parts, Arcesium, GAP, ZF, State Street, Intel, ICE, F5 Networks, Micron, and Callaway Golf have entered the Hyderabad.
In the first half of 2023, Goldman Sachs, Lloyds Banking Group, American Financial Services, State Street, FedEx, and Apollo Tyres etc., entered Hyderabad.
- 1985- 2000
The first MNC to enter our country was Texas Instruments. It was established in 1985 in Bengaluru. In 1992, Veritas Software started an R&D centre in Pune. Later, companies like AT&T/Lucent, Sun Microsystems, and Oracle started.
- 2001- 2005
In 2000, the Centre launched Special Economic Zones. A tax holiday has been announced. As a result, India’s youth talent has received a fresh boost. By 2005, 600 captive centres had been established.
- 2006- 2010
Although GCCs started providing back-end services, customer support, and finance related to IT in 2000, later these companies entered supply chain, sales, and HR departments.
- 2011- 2015
GCCs that provide backend services gradually started front-office services. Along with product design and artificial intelligence, digital marketing has started.
- 2016-2022
With the introduction of digital services, customers’ expectations have increased. As a result, the GCC ecosystem has changed. Start-up engagement and analytics at GCC have started. The Desh Bill was introduced.
Demand for luxury homes
Uber, which started with 500 employees, is increasing its capacity to 2,000. Germany’s ZF is doubling its workforce in Hyderabad. Micron has set up its largest centre in Hyderabad, after its corporate headquarters. Overall, with the increasing number of GCCs in Hyderabad, the demand for luxury homes will increase significantly. Kokapet becomes the prime location for these. As a result, the apartments in the surrounding areas will enjoy unprecedented popularity, says Prashant Rao, Director, Poulomi Estates.
