Hyderabad: The Rising Hub of Global Capability Centres (GCCs)
Hyderabad, often referred to as "Cyberabad," has emerged as a significant player in India’s technology landscape, particularly with the rapid growth of Global Capability Centres (GCCs). These centres are not just expanding their physical presence across the country but are also redefining the compensation landscape for tech professionals. As the demand for advanced technological skills surges, GCCs are offering pay packages that are 12-20% higher than those provided by traditional IT services and non-tech companies hiring for tech roles, according to a recent report by TeamLease Digital.
The GCC Landscape in India
India is home to over 1,600 GCCs, employing more than 1.66 million professionals. This number is projected to rise to 1,900 GCCs with over two million professionals by 2025. The focus areas for these centres include cutting-edge technologies such as Generative AI, Artificial Intelligence (AI) and Machine Learning (ML), Data Analytics, Cybersecurity, Cloud Computing, and Robotic Process Automation (RPA). The growth of GCCs is a testament to India’s burgeoning tech ecosystem, which is expected to reach a staggering $350 billion by 2025, up from $254 billion in FY24.
Compensation Trends: GCCs vs. Traditional IT
The TeamLease Digital report highlights that GCCs are setting new benchmarks in compensation across various job roles. In key functional areas such as software development, cybersecurity, data management, and cloud solutions, GCCs are offering significantly higher salaries compared to their traditional counterparts. This trend is particularly pronounced at entry, mid, and senior levels, where GCCs are attracting top talent with lucrative pay packages.
Krishna Vij, Vice-President of TeamLease Digital, emphasized that the premium on digital skills is driving this compensation surge. "The compensation in these centres is notably higher—ranging from 12% to 20% more than traditional IT services," she stated. This shift underscores the increasing value placed on advanced technological expertise in today’s job market.
The Role of Tier-2 Cities
While major metropolitan areas like Bengaluru, Gurgaon, Hyderabad, Delhi, Mumbai, and Chennai have traditionally been the epicentres of tech employment, there is a noticeable shift towards tier-2 cities. Locations such as Jaipur, Indore, and Coimbatore are emerging as new hubs for GCCs and data centres. These cities are witnessing a growing demand for roles in Data Science, Product Management, and Data Engineering, reflecting a broader trend of decentralization in the tech industry.
Vij noted, "With 800 new GCCs anticipated in the next 5-6 years, this sector’s growth is not limited to major cities. There is a growing expansion into tier-2 cities." This expansion not only diversifies the job market but also contributes to regional economic development.
The Future of GCCs in Hyderabad
Hyderabad’s strategic location, coupled with its robust infrastructure and a skilled workforce, makes it an attractive destination for GCCs. The city is already home to several prominent global firms, and as GCCs continue to proliferate, Hyderabad is poised to solidify its status as a tech powerhouse. The emphasis on advanced technologies such as AI, ML, and cybersecurity will further enhance the city’s appeal to both domestic and international companies.
Moreover, the collaboration between GCCs and Indian higher education institutions (HEIs) is fostering innovation and skill development. This synergy is crucial for preparing the workforce for the future demands of the tech industry, ensuring that professionals are equipped with the necessary skills to thrive in a rapidly evolving landscape.
Conclusion
The rise of Global Capability Centres in Hyderabad and across India signifies a transformative shift in the tech industry. With higher compensation packages, a focus on advanced technologies, and an expansion into tier-2 cities, GCCs are not only reshaping the job market but also driving digital transformation. As the Indian tech industry continues to grow, the role of GCCs will be pivotal in fostering innovation, creating job opportunities, and enhancing the overall economic landscape. Hyderabad, with its vibrant tech ecosystem, is at the forefront of this exciting evolution, positioning itself as a global hub for technology and innovation.