With over 70 Global Capability Centers (GCCs) from companies like Netflix, Eli Lilly, Costco and McDonald’s now operating in Hyderabad, the city is cementing its position as a global hub for enterprise innovation. Adding to this momentum, Hyderabad has reportedly attracted the GCC of the world’s largest cosmetics company, French beauty major L’Oréal.
Hyderabad is attracting GCCs in record numbers due to its skilled and abundant workforce, one dollar office rents, progressive government policies, world-class infrastructure, strong digital connectivity and diverse sector base spanning pharma, technology, BFSI and life sciences. Real estate experts say the city has overtaken Bengaluru in recent years and has captured nearly 40% of new greenfield GCC setup in India in the last three years.
These factors are attracting global firms in technology, financial services, engineering and manufacturing, hospitality and life sciences. Furthermore, the policy framework currently being formulated is expected to encourage the GCC to expand its real estate footprint in the city and accelerate capabilities in attracting global firms in research, product development, advanced analytics, artificial intelligence, machine learning, technology, financial services, engineering and cloud computing, he said.
GCCs, also known as global in-house centers or captives, are offshore units of large multinational companies that handle technology, analysis, operations, and other strategic functions.
Companies that have established GCC in Hyderabad
A recent media report said that L’Oreal is setting up one of its largest GCCs in Hyderabad. The upcoming centre, separate from L’Oréal’s research facilities in Mumbai and Bengaluru, will foster global technology, innovation and research for the French group.
In July, reports indicated that retail giant Costco would set up its first GCC in the city to handle technology and research operations. The center will start with 1,000 employees and expand over time.
Pharmaceutical major Eli Lilly has also announced plans to invest Rs 9,000 crore in Telangana over the next several years, mainly in new contract manufacturing. A media report said that as part of this strategy, the company will set up a manufacturing plant and a quality center in Hyderabad to support its India-based supply chain.
American fast-food giant McDonald’s also inaugurated its first India GCC, as its global office is called, in Hyderabad. Spread over 1.56 lakh square feet in Hitech City and with a seating capacity of 1,500 employees, it is McDonald’s largest outside the US and will serve as a global hub for innovation and enterprise operations.
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According to KPMG in India, gcc Today handle complex, high-value functions that directly contribute to revenue and serve as strategic hubs for innovation, analysis, and operations. India’s appeal as a GCC destination goes beyond cost advantages, bolstered by its strong digital ecosystem, skilled talent pool and a pro-business policy environment. The total number of GCCs in India increased to over 1,700 in FY24, operating over 2,975 centres. They generated an estimated $64.6 billion in revenue and employed more than 1.9 million people. According to KPMG India, the GCC market is expected to reach approximately $100 billion by 2030, with a workforce estimated to exceed 2.5 million.
This is what experts say about the GCC boom in Hyderabad
According to Anshuman Magazine, president and CEO, India, South-East Asia, Middle East and Africa at CBRE, what may look like a straightforward real estate choice is actually a strategic assessment of talent, infrastructure readiness, operational conditions and long-term scalability. Today the conversation around the GCC has shifted from “where space is available” to “where operations can grow” based on factors such as strong infrastructure, seamless airport access and a dependable talent pool.
Raja Sitharaman, Co-Founder, Propstack, said Hyderabad is attracting a record number of Global Capability Centers (GCCs) primarily due to its skilled and abundant workforce, progressive and supportive government policies, world-class infrastructure including SEZs and digital connectivity, and diverse sector presence including pharma, tech, BFSI and life sciences.
He said Telangana’s strategic initiative aims to shift Hyderabad’s GCC focus from outsourcing to value and innovation-driven operations, thereby promoting sustainable high value growth in the region.
According to Vimal Nadar, national director and head of research, Colliers India, during the first nine months of 2025, office leasing activity in India totaled 50.9 million sq ft, including GCC has an area of approximately 20 million square feetTaking place of Grade A, Interestingly, Hyderabad has emerged as one of the leading cities, and about 45% of the city’s 6,4 million sq ft office space demand was driven by GCC,
“Its appeal lies in competitive rents, a strong talent pool and ongoing infrastructure development, which attracts global companies across diverse sectors including technology, financial services, engineering and manufacturing, hospitality and life sciences,” he said.
Rent for less than a dollar
Joseph Thilak, national director-OSS, Hyderabad and Chennai, Knight Frank, said that before entering a new city, companies usually evaluate factors such as talent pool, infrastructure and real estate opportunities. Hyderabad currently ticks all the boxes.
The city offers world-class real estate at competitive rates, as low as $1 per square foot or less. 75 per square foot, which makes it attractive to set up a Global Capability Center (GCC). Its cultural diversity and expatriate population further strengthen the city’s appeal, ensuring that growth continues uninterrupted.
Hyderabad now hosts around 70 GCCs, a number that is attracting attention as Bengaluru is moving towards saturation in some areas. This makes Hyderabad a natural choice for companies looking to expand beyond Bengaluru. commercial lease The boundaries between high-tech cities 110-130 per sq ft, while rates are seen around the financial district He said, 60-70 per square foot. This combination of affordable, high-quality real estate and a deep talent pool allows companies to efficiently outsource functional operations such as finance, payroll and other services.
The city’s power surplus, strong social infrastructure and supporting ecosystem further add to its appeal. Key sectors to benefit include BFSI, technology, FMCG and semiconductors, with major players such as Google, Amazon, McDonald’s, Pepsi and JP Morgan establishing presence. Hyderabad’s competitive rents, high-quality commercial space and access to skilled talent are making it an increasingly preferred hub compared to 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, strong infrastructure and a cosmopolitan environment that attracts companies from around the world. Its quality commercial real estate, spanning IT corridors and exclusive hubs such as HITEC City, Gachibowli, Genome Valley and the Financial District, continues to strengthen its appeal.
Compared to established office markets like Bengaluru and Delhi NCR, Hyderabad offers significantly lower operating and real-estate costs. Some micro markets provide an ecosystem comparable to that of Bengaluru, while overall costs remain about 15% lower. This value proposition has made the city particularly attractive to global capability centers (GCCs) and medium-sized enterprises seeking a cost-effective alternative to India’s more expensive metros, he said.
Over the past 18 months, around 40 companies from various sectors have set up operations in the city. New entrants include players from manufacturing, engineering, hospitality, BFSI, renewable energy and packaging, among them names like Goodyear and Vanguard. Global companies including American Airlines, Southwest Airlines, Netflix, Costco, Inspire Brands, Haworth, T-Mobile, Sonatype, L’Oréal, McDonald’s, Amazon, Carlsberg, Heineken and Land O’Lakes have also expanded or established new centers.
He said this momentum is supported by strong activity in fintech, FMCG, agriculture, food processing and process automation industries, Hyderabad’s skilled workforce ready and the opportunity to build new capabilities.
