India has become a global hub for Global Capability Centers (GCCs), with over 1,700 centers contributing $64.6 billion in export revenue and employing nearly 1.9 million professionals. Companies across industries—IT, BFSI, life sciences, AI, and analytics—are choosing India to build cost-effective, innovation-driven global teams.

When it comes to selecting a location for a GCC, Bangalore and Hyderabad emerge as the top choices. Both cities offer world-class talent, infrastructure, and government support, but they differ in key areas such as cost, ease of doing business, and overall ecosystem. This article breaks down the comparison to help you make an informed decision.

📌 Looking to set up your GCC in India? Supersourcing provides end-to-end solutions, from strategy and recruitment to scaling your operations.

India’s Growing GCC Ecosystem

India is the second-largest hub for GCCs globally, with a projected 2,000+ centers by 2030. Major companies such as Google, Microsoft, Amazon, JP Morgan, and Wells Fargo have already established their engineering, R&D, and back-office operations here. The country’s cost advantages, highly skilled workforce, and government incentives make it the go-to destination for businesses looking to optimize global operations.

Talent Availability: Bangalore vs Hyderabad

Bangalore has been India’s tech capital for years, offering a vast pool of skilled professionals. The city is home to over 2 million IT professionals, with expertise in AI, cloud computing, and software engineering. It attracts senior and mid-level talent, making it a great option for companies needing deep technical expertise. However, the competition for talent is fierce, leading to higher salary expectations.

Hyderabad, on the other hand, has seen a rapidly growing talent base, particularly in BFSI, cybersecurity, and life sciences. The city offers highly skilled professionals at a lower cost, with salaries that are 15-25% lower than Bangalore. It also boasts lower attrition rates, making it attractive for companies looking for long-term stability in hiring.

Which City Wins?

If your GCC requires highly specialized, experienced talent, Bangalore is the better choice. If cost-effective hiring and workforce stability are priorities, Hyderabad is the stronger option.

Infrastructure & Real Estate

Bangalore has a well-established tech infrastructure, with premium business districts such as Electronic City, Whitefield, ORR, and Manyata Tech Park. However, high demand has led to expensive office spaces and heavy traffic congestion, making daily commutes challenging.

Hyderabad’s HITEC City and Financial District offer modern office spaces at 30-40% lower costs compared to Bangalore. The city also boasts better-planned roads, less congestion, and faster approvals for business setup, making it a more efficient option for GCC expansion.

Which City Wins?

For prestige and an established business hub, Bangalore is ideal. For affordable, high-quality office spaces with better connectivity, Hyderabad takes the lead.

Startup & Business Ecosystem

Bangalore is India’s startup capital, home to 40+ unicorns such as Flipkart, Swiggy, and Byju’s. The presence of global tech giants like Google, Amazon, and Microsoft fosters an innovative, high-growth business environment. Companies setting up GCCs here can tap into a vast network of tech experts, VCs, and startups, but they will also face high competition for talent and office spaces.

Hyderabad is catching up quickly, with major players such as Apple, Deloitte, and Facebook expanding their footprint. While its startup ecosystem is still growing, the city offers less competition and lower business setup costs, making it an attractive alternative for companies looking for scalability without the high expenses.

Which City Wins?

If you want to be part of India’s most dynamic tech ecosystem, Bangalore is the best choice. If lower competition and business-friendly policies matter more, Hyderabad is a great alternative.

Government Policies & Business Support

Bangalore benefits from Karnataka’s pro-business policies, especially in AI, deep tech, and R&D. A dedicated GCC policy is also in development to attract more multinational corporations.

Hyderabad stands out for its TS-iPASS policy, which ensures faster business approvals and streamlined setup processes. Telangana has also been ranked higher in ease of doing business compared to Karnataka, making Hyderabad a more business-friendly destination.

Which City Wins?

If you’re in AI or deep tech, Bangalore has stronger incentives. If you need faster approvals and easier business setup, Hyderabad is the better choice.

Cost of Operations: Salaries, Office Rent & Living Expenses

Bangalore is an expensive city. High demand for real estate leads to higher office rents, costlier salaries, and expensive housing. The competition for skilled professionals also drives up salary expectations, making it one of the most expensive cities in India for business operations.

Hyderabad, on the other hand, is 30-40% more cost-effective, with lower salaries, affordable office spaces, and a lower cost of living. Companies setting up a GCC here can optimize operational costs while still accessing top talent.

Which City Wins?

If cost-efficiency is a priority, Hyderabad is the better option. If access to top talent and networking matter more, Bangalore justifies the higher costs.

Quality of Life & Employee Retention

Bangalore offers higher salaries, strong career growth opportunities, and a dynamic social environment. However, traffic congestion and expensive living conditions can affect work-life balance and employee retention.

Hyderabad provides a more affordable, well-planned city with less traffic and lower living costs. Employees enjoy better housing options, improved infrastructure, and a growing cultural scene, leading to better work-life balance and retention rates.

Which City Wins?

For career opportunities and networking, Bangalore excels. For better employee retention and quality of life, Hyderabad is a more attractive option.

Final Verdict: Which City is Best for Your GCC?

Choosing between Bangalore and Hyderabad depends on your company’s priorities:

  • Choose Bangalore if: You need specialized tech talent, strong networking opportunities, and want to be in India’s most innovative business ecosystem.
  • Choose Hyderabad if: You want cost-efficient operations, easier business setup, and a less competitive hiring market.

📌 Hybrid Strategy: Many companies headquarter in Bangalore for talent access and expand operations in Hyderabad for cost efficiency.

FAQs

  1. What industries thrive in Bangalore vs Hyderabad?
    Bangalore excels in AI, software engineering, and deep tech, while Hyderabad is stronger in BFSI, cybersecurity, and life sciences.
  2. Which city has better government incentives for GCCs?
    Hyderabad’s TS-iPASS policy offers faster approvals, while Bangalore’s upcoming GCC policy focuses on high-tech industries.
  3. How do salaries compare?
    Salaries in Hyderabad are 15-25% lower than in Bangalore for similar roles.

Conclusion

Both Bangalore and Hyderabad offer excellent opportunities for GCCs. If talent and innovation are your focus, Bangalore wins. If cost-efficiency and business-friendly policies matter more, Hyderabad is the smarter choice.

🚀 Need expert help setting up your GCC? Supersourcing provides end-to-end solutions to help you build, scale, and optimize your GCC in India