Hyderabad strengthens its GCC position with AI and sector-led expansion

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Hyderabad accelerates GCC growth with AI, talent and sector diversification
Hyderabad accelerates GCC growth with AI, talent and sector diversification

Hyderabad is gaining momentum as a major Global Capability Centre (GCC) destination in India, with growth increasingly driven by artificial intelligence, sectoral diversity, skilled talent, digital infrastructure and government support. Since 2024, the city has attracted 197 GCCs, while Telangana is now looking to widen this growth across technology, life sciences, semiconductors, banking, defence and other sunrise sectors.

Officials attribute the expansion to skilled manpower, competitive operating costs, proactive government measures and improved infrastructure. GCCs in core software and technology currently account for around 28% of incoming GCC investments.

At the recent Nasscom GCC Summit 2026 in Mumbai, the state government outlined its next phase of expansion through a broader urban and industrial development strategy. IT and Industries Minister D Sridhar Babu said Telangana is targeting 100 more GCCs this year, with the potential to generate nearly 1 lakh specialised jobs. The government also wants these centres to move beyond traditional back-office operations and become “global value centres.”

Hyderabad’s policy environment and infrastructure are also supporting this expansion. GCC growth is being linked with Bharat Future City, AI City, Metro Rail expansion, a new airport, the Regional Ring Road, Musi rejuvenation and Young India Skills University.

The state has also proposed a dedicated GCC policy for “Beyond CURE” areas. The plan aims to create new growth corridors towards Nizamabad, Karimnagar and Warangal, taking GCC investments beyond Hyderabad’s core IT zone.

The city is attracting GCC investments across technology, banking, life sciences, semiconductors, defence, FMCG, space technology and hospitality. The state government claims Hyderabad has attracted more new GCCs than Bengaluru over the past 2 years, supported by its digital and physical infrastructure and strong focus on AI.

With nearly 450 operational GCCs already based mainly in and around Hyderabad, the government sees the next phase as a shift towards higher-value work, deeper R&D and more distributed growth across Telangana.

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