India now hosts over 1,800 Global Capability Centers employing nearly two million professionals, and the country captured over $68 billion in GCC revenue by 2025. For enterprises planning their next strategic hub, the decision often comes down to two cities: Bengaluru and Hyderabad. While Bengaluru has dominated the GCC landscape for decades with 880+ centers, Hyderabad has emerged as a formidable challenger capturing 46% of all new GCC setups in 2025, overtaking Bengaluru for the first time. This article provides a data-driven comparison across talent, cost, infrastructure, government policy, and scalability to help you make the right choice for your GCC.

Talent Pool and Specialization

Talent availability remains the single most important factor in GCC site selection, and both cities bring distinct strengths to the table.

Bengaluru: Depth and Seniority

Bengaluru hosts India’s largest concentration of senior engineers, architects, and technical leaders. The city is home to roughly 40% of India’s GCC workforce, making it unmatched for roles in AI/ML, product engineering, chip design, and FinTech. Decades of sustained hiring by multinationals and high-growth startups have created a self-reinforcing talent ecosystem in which companies can scale from 50 to 5,000 people without moving cities.

Hyderabad: Scale and Emerging Expertise

Hyderabad employs over 300,000 GCC professionals across 355+ centers, with a 500,000-strong IT talent pool and 15% lower attrition than Bengaluru. The city has built deep capability in BFSI, aerospace, pharma R&D, cloud infrastructure, and cybersecurity. Initiatives like the Telangana AI Mission (T-AIM) and a network of 940+ startups are accelerating growth in digital engineering roles.

Cost Comparison: Office Space, Salaries, and Operations

Cost efficiency is where Hyderabad makes its strongest case. The city offers salaries 15–25% lower than Bengaluru across comparable roles, and office rental rates in HITEC City and Gachibowli range from ₹60–90 per square foot monthly, roughly 25% lower than Bengaluru’s ₹80–120 per square foot range in prime micro-markets like the Outer Ring Road corridor.

Bengaluru remains viable for companies prioritizing access to niche talent over cost optimization, but enterprises building large-scale operations with 500+ seats will find Hyderabad’s economics significantly more favorable. Hyderabad’s SEZ advantages can trim ₹50–70 lakh annually for a 50,000-square-foot office through tax savings alone.

Infrastructure and Real Estate

Both cities offer Grade A office supply, but their trajectories differ. Bengaluru led all cities with 12 million square feet of GCC leasing in 2025, driven by demand along the Outer Ring Road, Whitefield, and emerging micro-markets like North Bangalore (Hebbal, Devanahalli). However, vacancy rates are expected to ease further from 9.8% to 9.0-9.5% in the financial year 2026.

Hyderabad absorbed 5.5 million square feet in 2024 (up 20% year-over-year), with 28 million square feet of dedicated GCC office space across HITEC City, Gachibowli, and the Financial District. The city offers better real estate availability and faster lease turnaround, making it easier for new entrants to secure campus-style offices within weeks rather than months.

The infrastructure gap shows in urban livability.

Bengaluru faces well-documented challenges with traffic congestion, water scarcity, and commute times. Large firms are increasingly adopting multi-site models. SAP has expanded its second campus in North Bengaluru for over 15,000 seats. Hyderabad’s planned city layout, centered around the HITEC City corridor, offers more predictable commutes and infrastructure that can better accommodate rapid headcount growth

Government Policy and Ease of Setup

Government support can materially accelerate GCC launch timelines, and both states have recognized this opportunity.

Karnataka’s GCC Policy (2024–2029) aims to attract 500+ new centers through incentives, simplified compliance, and a dedicated setup pathway. At the national level, the National GCC Single Window Portal streamlines approvals across all states.

Telangana has been more aggressive with its TS-iPASS policy framework, offering single-window clearances, SEZ tax benefits, and dedicated industry support through T-Hub — one of Asia’s largest startup incubators. Recent high-profile wins like Vanguard’s first India GCC (targeting 2,300 engineers by 2029) and McDonald’s largest office outside the US demonstrate Hyderabad’s ability to attract marquee investments. Telangana’s proactive engagement with global enterprises has shortened GCC setup timelines, with several companies reporting approval-to-operations cycles of under six months.

Scalability and Long-Term Outlook

For enterprises planning multi-phase GCC buildouts, scalability drives the city selection math beyond Day 1 costs.

Bengaluru offers unmatched ecosystem maturity. The city’s network effects make it the safest choice for complex, multi-functional hubs that combine R&D, product engineering, and innovation under one roof. India’s GCC ecosystem is projected to reach $105 billion and 2.8 million professionals by 2030, and Bengaluru will remain the anchor of this growth.

Hyderabad’s trajectory tells a different story — one of acceleration. The city’s GCCs are projected to employ 500,000+ professionals by 2030, driven by lower attrition, predictable cost structures, and available real estate. For companies that need to scale from 100 to 1,000+ employees within 24 months while controlling operating expenses, Hyderabad offers smoother execution

Making the Right Choice: A Decision Framework

The right city depends on your GCC’s strategic mandate, not a universal ranking.

Many enterprises are choosing both — launching in Hyderabad for speed and cost efficiency, then establishing a Bengaluru presence for specialized innovation teams. This dual-city model is increasingly common among GCCs building multi-capability centers across India.

Conclusion

The Bengaluru vs. Hyderabad GCC decision reflects a broader shift in India’s capability center landscape. Bengaluru remains the gold standard for deep technical talent and ecosystem maturity, while Hyderabad has earned its position as the fastest-growing GCC destination through cost efficiency, government support, and workforce stability.

The strongest approach may not involve choosing one city over the other. For organizations ready to establish or expand their GCC in India, Crewscale specializes in helping enterprises navigate site selection, talent acquisition, and operational setup, ensuring your GCC delivers strategic value from Day 1.