Hyderabad outpaces Bengaluru, emerges as the new Global Capability Centre (GCC) Hotspot

With one of the world's largest healthcare manufacturing organizations, Lonza Group AG, announcing its plans to set up a plant in Hyderabad, we take a look at how and why Hyderabad is emerging as the top destination for new global capability centres, outpacing Bengaluru.

Bengaluru’s status as the country’s undisputed IT leader is being challenged by Hyderabad’s exponential rise, with the 'City of Nizams' becoming the preferred destination for global corporations and new GCC setups.

Ever since the digital era, Bengaluru has remained everyone’s favourite as the premier IT capital. However, recent trends indicate that the tech geography is currently undergoing a massive transformation.

Recently, Hyderabad has become the favourites of Global Capability Centres' as it continues to pull major international players away from traditional markets.

Several multinational companies are vouching in their high-value operations for their new greenfield operations in Hyderabad, making it a direct competitor to Bengaluru.

Recently, Lonza Group AG, the Swiss contract development and manufacturing firm, revealed its decision to launch a global capability centre (GCC) in Hyderabad.

Hyderabad has officially outpaced Bengaluru in the GCC race. As data shows, Hyderabad secured 35 of the 85 new centers established in 2025, while Bengaluru managed to get just 21. Today, Hyderabad accounts for nearly one in five of India’s total GCCs.

Hyderabad is effectively bridging the gap for young talent across its region. Moreover, the city is setting the example by bridging the gap between rural & small-town graduates and global players like Microsoft, Amazon, Google, Infosys, TCS and others.

With easy access and fresh opportunities, this diverse blend is not just changing the face of the workforce but transforming the way of working in the modern era.

Hyderabad is winning the GCC race simply by getting its basics right. While Bengaluru continue to reel with traffic and infrastructure issues, Hyderabad has swiftly progressed with good connectivity and reliable public transport.

While there is no city without congestion, Hyderabad's well-managed growth has made it a highly attractive place for big companies.

Beyond the office, Hyderabad excels in making the transition easy for the new residents. What sets the city apart is its ability to adapt to an affordable lifestyle.

Over the years, the city has become a magnet for talent and expanding organizations. This balance mirrors why Hyderabad is rapidly becoming the primary home for budding leaders and entrepreneurs.

While still a tech giant, Bengaluru is grappling with mounting urban pressures that threaten its long-term appeal. Critical issues like chronic traffic gridlock, overstretched public utilities and a skyrocketing cost of living have become significant pain points for people.

Industry veterans have cautioned that unless these structural bottlenecks are addressed on time, the city risks a gradual diversion of capital toward more efficient, emerging tech hubs.

No longer just a hub for pharma and finance, Hyderabad is reinventing itself through a booming AI tech and animation scene. By adapting to new possibilities while retaining its cultural roots, Hyderabad has become a hub for global investments.