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Hyderabad has surpassed Bengaluru as India's leading destination for Global Capability Centres (GCCs) in 2025. Unearth Insights conducted a study revealing that from January to November 2025, Hyderabad was home to 46% of all established GCC companies, whereas Bengaluru drew 33% during this time. Out of an estimated 85-95 new GCCs set up in this period, Hyderabad hosted more than 41 centres, while Bengaluru saw the addition of around 30. Meanwhile, cities like Chennai and Pune each attracted over 5 centres. This change demonstrates Hyderabad’s growing importance as a key hub for global companies setting up technology, R&D, analytics, and shared-services operations in India. In this article, we will look at a major change expected in 2025, where Hyderabad is set to outdo Bengaluru by drawing more Global Capability Centers (GCCs). And will also discuss how Hyderabad will have more GCC companies compared to Bengaluru, and why it is becoming a more favorable choice. Reasons Why GCC Companies Choose Hyderabad Instead of Bengaluru 1. Hyderabad’s Business Atmosphere Fits for GCC Needs A key reason why GCC firms select Hyderabad is its supportive business conditions that match their requirements well. Industries like banking, logistics, aviation, energy, retail, and real estate, which are strong in GCC countries, are growing in India. Hyderabad provides ideal conditions to grow these industries fast with its advanced infrastructure, strong connectivity, and government incentives to attract foreign investors. Many GCC companies in Hyderabad have praised the state’s active administrative efforts. Telangana’s government focuses on making business operations smooth by offering fast approvals for projects and creating specialized investor support centers. This approach cuts down on red tape and helps international investors feel secure when launching their ventures. 2. Top-Notch Infrastructure and Modern IT Parks Hyderabad has seen remarkable growth in its infrastructure over the past few years. The city boasts a growing Hyderabad IT park environment. Areas like HITEC City, Financial District, Kokapet Neopolis, and upcoming developments such as Pharma City and the Airport Corridor are drawing in several GCC companies. These IT hubs offer: High-quality office spaces Reliable data connectivity Round-the-clock electricity and top-notch facilities Modern shared workspaces Advanced transportation and road systems Companies in the GCC working in fields like finance, cybersecurity AI, cloud computing, and telecom see Hyderabad’s infrastructure as a great match for their technology-driven and complex operational needs. Also, renting office space in Hyderabad costs 20–30% less than in Bengaluru, which lets businesses expand at a lower expense. 3. Improved traffic flow and balanced lifestyle Bengaluru struggles the most with its traffic issues. Long, tiring commutes and unexpected delays hurt productivity, make operations harder, and lower employee spirits. On the other hand, Hyderabad makes city travel easier with its well-designed roads and steady upgrades to its infrastructure. With features like the Outer Ring Road, multiple flyovers, and planned metro extensions, Hyderabad has built an urban mobility system that works. To achieve quicker business turnarounds and support hybrid work setups, GCC companies in Hyderabad find a better travel experience a big plus. A city that feels calmer and more organized draws in skilled professionals. This is why Hyderabad is becoming a favorite for GCC companies. 4. Finding Skilled Talent Without High Costs Businesses need skilled workers to expand. While Bengaluru remains a tech hub, Hyderabad is catching up fast with its wide pool of talent in: AI and machine learning Cloud computing Cybersecurity Software development Digital transformation Shared services and customer support Big companies like Microsoft, Amazon, Meta, Google, and Deloitte have set up global delivery centers in the city. These centers from international giants help boost the overall expertise of the local workforce. To expand into India, many GCC companies focus on cost efficiency. Hyderabad provides talented workers with lower salaries than Bengaluru while maintaining top-notch standards. 5. Cheaper Living and a Higher Quality of Life Hyderabad often scores high on quality-of-life rankings in India. It blends affordability with modern facilities, making it a preferred spot for businesses and employees alike. Housing in Hyderabad costs much less. Daily expenses such as groceries, recreation, and other lifestyle needs are affordable. The city has cleaner areas, better air, and a balanced climate. These factors help teams from GCC countries relocate here. Businesses in cities like Dubai, Abu Dhabi, Doha, and Riyadh often send their leaders to Indian campuses to train or coordinate efforts. Hyderabad offers them a welcoming, modern setting that feels familiar to their own markets. 6. Policies Aimed to Attract Global Investors The Telangana government is known for policies that make it easy to invest. Programs like TS-iPASS give speedy industrial approvals, and industry-specific incentives encourage foreign companies to invest. GCC companies enjoy several major benefits: Fast approval processes Tax breaks and financial help for setting up new projects Strong backing to support startups and tech innovation Consistent political leadership aiming to grow the economy Enterprises looking to establish long-term operations in India see policy consistency as a big advantage. Bengaluru is a well-known hub, but it often struggles with administrative delays and infrastructure problems that slow down expansion plans. 7. Expanding Role of GCC Market Leaders Hyderabad is turning into a key hub in central India for industries led by GCC markets such as: Oil and gas Aviation Real estate Hospitality Fintech Retail and eCommerce Several GCC businesses are launching innovation hubs, customer support centers, shared services, and tech research units in Hyderabad. This builds a cluster effect bringing in more investors from the Gulf region and making the city stronger compared to Bengaluru. 8. Deep Cultural Connections and Ties with the Gulf Hyderabad shares strong cultural and historical links with GCC countries. The large number of people from the city living in places like Dubai, Saudi Arabia, Qatar, Oman, and Kuwait boosts business ties. You can catch frequent direct flights from Hyderabad International Airport to major Gulf cities. Executives from GCC countries visiting India for meetings find great convenience in Hyderabad. The city's food scene mixes cultures, and a community that speaks Arabic makes Gulf visitors feel at home. These friendly aspects play a role in shaping long-term investment choices. 9. Thriving Startup Ecosystem and Innovation Support T-Hub, T-Works, We-Hub, and many private innovation hubs have made Hyderabad a major center for startups in AI, health tech, enterprise solutions, and robotics. Several GCC companies work with Indian startups to drive digital transformation. Hyderabad’s ecosystem makes it simple for innovators and researchers to connect. 10. Real Estate Opportunities Around Hyderabad IT Park Zones Big opportunities exist in real estate near Hyderabad’s IT parks. The city’s growing commercial property market is a key reason why GCC companies keep expanding here. Areas like HITEC City, the Financial District, and the IT park zones in Kokapet and Nanakramguda offer advanced office spaces at affordable rates. Telangana’s projects like Neopolis, the Airport Corridor, and the upcoming integrated townships attract investors aiming to expand infrastructure over the long term. Unlike Bengaluru’s crowded real estate scene, Hyderabad gives space to grow, expand, and establish major GCC campuses. Conclusion: Hyderabad Leads the Race in 2025 In 2025, the shift is unmistakably clear: GCC companies prefer Hyderabad over Bengaluru due to its infrastructure, cost advantages, administrative support, lifestyle benefits, and strategic alignment with Gulf business ecosystems. With more GCC companies in Hyderabad expanding operations and the continuous growth of the Hyderabad IT Park ecosystem, the city is firmly positioned as the top choice for Middle Eastern enterprises entering India. Hyderabad’s rise is not just a trend-it’s the beginning of a new era where the city becomes the central gateway for GCC-India economic collaboration.

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Why GCC Companies Choose Hyderabad over Bengaluru in 2025?

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