Hyderabad edges past Bengaluru, becomes preferred destination for companies

Hyderabad: Hyderabad has once again reaffirmed its position as the preferred destination for companies looking to set up new units or expand existing ones.

The city has surpassed Bengaluru in terms of Global Capability Centre (GCC) establishments in the first half of 2023.

More than 40 global companies have chosen Hyderabad for their Acceleration Centres, Centres of Excellence (CoEs), Centres of Innovation, and R&D Centres during this period, according to a report by the Dallas-headquartered research and analysis firm Everest Group.

Tech Job Growth and Beyond

This trend is not only reflected in the establishment of such centers but also the remarkable growth of technology jobs in the city. Hyderabad's share of tech jobs, as a percentage of overall technology jobs in India, has surged from 33 percent to 44 percent during 2021-22. Simultaneously, the demand for non-tech services continues to grow, reflecting strong investor sentiment.

The Everest Group blog report points out that Hyderabad has exhibited admirable growth and resiliency over the past two years, recording one of the highest growth rates in the country for global service delivery. This success is attributed to the commitment to fostering a conducive business environment, highlighted by regular engagements between IT and Industries Minister KT Rama Rao and top corporate executives.

Several announcements of new center setups and expansions, including those from Mondee Holdings, Storable, Rite Software, Tekgence, Zapcom, and Charles Schwab Corporation, stemmed from the Minister's trip to the United States in May.

Hyderabad Vs Bengaluru: A Contrasting Tale

So, what sets Hyderabad apart from Bengaluru, often referred to as India's Silicon Valley? The blog report cites multiple factors. With high-quality talent, state-of-the-art infrastructure for delivering advanced technological services, and strong government support, Hyderabad has risen as a top global services destination.

In contrast, the environment in Bengaluru appears relatively subdued, grappling with the impacts of an economic downturn. This creates a stark juxtaposition in terms of their future growth trajectories.

Hyderabad, traditionally known for its pharmaceutical enterprises, has diversified its appeal across various industries, including aerospace, manufacturing, retail services, pharmaceuticals, and professional services. Moreover, different types of services are being delivered to clients from these GCCs set up in the city, reaching clients worldwide.

Embracing Future Technologies

Hyderabad's trajectory is ascending with each passing quarter, driven by the availability of high-quality talent, world-class infrastructure, and a focus on future technologies. The city offers a wide range of advanced services, including animation, Artificial Intelligence (AI), cloud computing, Internet of Things (IoT), Machine Learning (ML), Natural Language Processing (NLP), Robotic Process Automation (RPA), visual effects (VFX), Augmented Reality (AR), and Virtual Reality (VR).

Hyderabad has also established itself as an educational hub, home to globally recognized institutions such as the Indian School of Business (ISB), the International Institute of Information Technology (IIIT), and BITS Pilani.

Affordability and Government Support

One of the key differentiators is the cost of living. Hyderabad offers a more affordable lifestyle without compromising quality, in contrast to Bengaluru's high cost of living and infamous traffic congestion.

Minister KT Rama Rao said “The growth and resilience of Hyderabad as a business hub are a testament to the state's commitment to fostering a conducive environment for corporations. Our regular engagements with industry leaders have been pivotal in attracting businesses to the city."

The unwavering government support has amplified the impact of both Hyderabad's talent pool and infrastructure. The State government has implemented multiple initiatives to improve the conduciveness of the city's business environment and foster growth.

Hyderabad's appeal goes beyond traditional tech industries, reflecting a diverse and resilient economy with a focus on future technologies. This, combined with government support and a high-quality workforce, places Hyderabad in a league of its own among India's business destinations