Emerging Trends: The Future of GCCs in Hyderabad

Over the past decade, Hyderabad has transformed from a promising IT city to one of India’s leading hubs for Global Capability Centres (GCCs). With a robust talent pipeline, modern infrastructure, and progressive governance, the city continues to attract multinational corporations looking to build high-value global operations.

As the market matures, the next wave of GCCs in Hyderabad is expected to move well beyond traditional support functions, evolving into centres that drive core innovation, digital transformation, and strategic growth for their parent organisations.

In this article, we explore the emerging trends that will shape the future of GCCs in Hyderabad and how this evolution will impact the city’s commercial real estate landscape.

What is a GCC? And why is Hyderabad Important?

A Global Capability Centre (GCC) — also known as a Global In-house Centre (GIC) — is an offshore subsidiary that handles key business functions for its parent company. Initially established to deliver cost advantages for back-office and IT operations, today’s GCCs have matured into critical hubs for R&D, product engineering, AI, data analytics, and cybersecurity.

India hosts over 1,580 GCCs employing nearly 1.66 million professionals, with Hyderabad accounting for more than 10% of this footprint — a number that continues to grow each year. The city’s competitive costs, robust talent pool, and reliable civic infrastructure have made it an increasingly strategic choice for global enterprises.

Key Trends Shaping the Future of GCCs in Hyderabad

1. The Shift from Cost Centres to Innovation Hubs

In the coming years, GCCs in Hyderabad will focus more on value creation than pure cost optimisation. Many global companies have already set up Centres of Excellence (CoEs) here to lead advanced functions like AI, machine learning, automation, and big data analytics.

For example, companies such as Microsoft, Facebook (Meta), and Amazon have transformed their Hyderabad operations into innovation and R&D bases rather than just support centres.

2. Expansion of Hybrid and Flexible Work Models

The rise of remote and hybrid working models is driving a shift in workspace strategy for GCCs. More companies are now opting for managed office spaces in Hyderabad and flexible coworking arrangements to accommodate distributed teams while optimising real estate costs.

This is fuelling demand for high-quality coworking spaces in Hyderabad’s prime micro-markets, including HITEC City, Gachibowli, and the Financial District.

3. Talent Upskilling and Deep-Tech Focus

Hyderabad’s deep talent base has long been one of its biggest strengths. However, the next phase will see an increased focus on upskilling local talent to handle more complex, niche roles in AI, cloud computing, blockchain, cybersecurity, and Industry 4.0 solutions.

The Telangana government is also partnering with leading universities and tech companies to encourage industry-academia collaboration. This ensures a steady supply of professionals ready to work on next-generation technologies within GCCs.

4. Sustainability and Smart Workspaces

As sustainability gains momentum, new GCC campuses are being designed with green building certifications, energy-efficient systems, and smart infrastructure. Companies are increasingly looking for office spaces in Hyderabad that align with global ESG (Environmental, Social and Governance) standards.

This is influencing the commercial real estate market — developers are now building Grade-A office properties that offer sustainable design, better indoor air quality, and smart building management systems.

5. Expansion into Emerging Corridors

While HITEC City and Gachibowli remain the core hubs for GCCs, emerging corridors like Kokapet, Raidurg, and the Financial District are witnessing significant interest. Large developers are investing in integrated tech parks and SEZs to meet growing demand from companies looking for scalable, high-quality office space in Hyderabad.

A Look at the Numbers

Industry analysts expect Hyderabad’s office leasing demand to remain strong in the coming years. Hyderabad could account for up to 25% of India’s total office space absorption by 2026, with GCCs driving a large share of this demand.

This growth is backed by sustained interest from Fortune 500 companies and emerging startups alike, who see Hyderabad as a balanced option for cost, talent, and quality of life.

What This Means for Real Estate in Hyderabad

The changing nature of GCCs directly influences Hyderabad’s office space market. Companies are looking for flexible leasing models, plug-and-play managed offices, and built-to-suit campuses that support collaboration, digital infrastructure, and employee well-being.

At The Office Address, we are seeing increased demand for both managed office space in Hyderabad and fully serviced coworking spaces that cater to evolving GCC requirements.

Conclusion

Hyderabad’s evolution from a traditional IT base to a sophisticated hub for Global Capability Centres is a story of resilience, adaptability, and growth. As companies expand their focus from operational support to strategic innovation, Hyderabad’s role in the global GCC landscape will only grow stronger.

With sustained government support, robust talent pipelines, and Grade-A commercial real estate supply, Hyderabad is well-positioned to shape the next generation of global operations. For any enterprise planning to set up or expand a GCC, the city offers a unique combination of talent, cost efficiency, and future-ready infrastructure.