GCCs (global capability centers) are big-sized facilities having a workforce to manage key operations such as business support, IT support, app development, and customer support. GCCs are formed by leading multinational companies at different geographic locations to expand their business in diverse markets.
The concept of GCCs is not something that is new. Places that were known as outsourcing/back office facilities about two decades back are now called global capability centers. The crucial difference is that the scope of modern GCCs has expanded in a big way; this is chiefly in terms of the integration of digital technologies. Here, the fact that the number of people working in a typical GCC in contemporary times is higher is an important facet, as well.
GCCs in Hyderabad-Growth
During the course of the last few years, there has been tremendous growth in the global capability centers established in Hyderabad. Let us now focus on more details about this development.
- A striking point is observed when the first six months of the year 2023 are taken into consideration. The total area occupied by the GCCs in Hyderabad is well over one million square feet. For this duration, Hyderabad ranks among the top Indian cities when the segment of global capability centers is viewed.
- In the last three years, there has been an outstanding surge in the number of people employed in the GCCs of Hyderabad.
- A study has pointed out that roughly 30% of the people working in GCCs situated in India are those employed in Hyderabad global centers.
- The initial half of 2023 has seen the opening of seven new global capability centers in the city. In this period, four of the already operating GCCs in the city have significantly expanded their operations.
- The GCCs of many global leaders, like Deloitte, Amazon, Novartis, Franklin Templeton, and Wells Fargo have already been set up in the city. And, many more prominent entities are in the process of establishing their centers in Hyderabad.
- In the recent past, Omnicom Group, Global Healthcare Exchange, and MetLife have communicated their decision to open GCCs in Hyderabad. It’s anticipated that this will encourage many more big players to set up their offices in this city.
- It is predicted that within the next couple of years, the total global capability centers in India will be in the region of 2000. And, it is also being forecasted that a significant chunk of those centers are going to be located in Hyderabad. Several sources in the markets strongly voice the view that the city will become the major hub for the Indian sector of global capability centers.
- One of the primary reasons for the phenomenal increase in the global capability centers in Hyderabad is the presence of TASK in Telangana. TASK is the acronym for Telangana Academy for Skill and Knowledge. TASK provides the required training for individuals desiring to work in GCCs; they are equipped with all the relevant skills. Even apart from that, there is no dearth of people in Hyderabad possessing the competencies to obtain employment in these centers.
- The top-class infrastructure there in Hyderabad and the city’s excellent connectivity to major zones have contributed to the rise in the global centers, too. Here, a mention should also be made of the investor-friendly initiatives of the government of Telangana.