For small and mid-sized enterprises (SMEs) in the US and EU, growth often comes with tough trade-offs. Expanding your technology or operations teams in-house is costly and slow. Outsourcing offers short-term relief but often means loss of control, fragmented delivery, and risk to your intellectual property.
That’s where Global Capability Centers (GCCs) come in. A GCC is your own offshore team, fully integrated into your business but based in a cost-effective, talent-rich location. Instead of handing work to a third-party vendor, you retain control, IP ownership, and strategic flexibility – while still reducing operating costs.
And when it comes to setting up GCCs, Hyderabad, India is now one of the most attractive destinations globally.
Why Hyderabad?
Hyderabad has emerged as one of India’s top GCC destinations, second only to Bengaluru. The city hosts more than 350 GCCs and has seen over 40 new global centers established in just the first half of 2023. Recent entrants include McDonald’s, Costco, American Airlines, Dai-ichi Life, Heineken, and Eli Lilly – joining established players like Microsoft, Amazon, Novartis, and Wells Fargo.
What makes Hyderabad so compelling?
1. Deep, Affordable Talent Pool
- Hyderabad produces thousands of STEM graduates each year through institutions like IIT-H, IIIT, ISB, and JNTU.
- It already accounts for 13% of India’s tech workforce, with concentrations in software engineering, analytics, life sciences, and finance.
- Unlike outsourcing vendors, a GCC lets you hand-pick and train talent that mirrors your culture and standards – at a fraction of US/EU costs.
2. Government Incentives and Ease of Business
- Telangana’s TS-iPASS policy guarantees single-window approvals within 15 days.
- GCCs can benefit from tax reimbursements, power subsidies, and land rebates, along with tailor-made incentives for large projects.
- A “Meet or Beat” policy ensures Telangana matches or exceeds competing states’ offers to attract global investors.
3. Real Estate and Scalability
- Hyderabad has over 130 million sq. ft. of Grade-A office space, projected to cross 200 million by 2030.
- Leasing costs are significantly lower than Bengaluru or Mumbai, while infrastructure is world-class: reliable power, data connectivity, international airport, and metro access.
- Developers offer plug-and-play SEZs and IT parks, making it easy to start small and expand as your team grows.
4. Sectoral Depth
Hyderabad’s GCC ecosystem isn’t limited to IT. Companies across healthtech, R&D, financial services, logistics, manufacturing, and marketing are already running global functions from the city.
- Life sciences giants like Sanofi, Bristol Myers Squibb, and Amgen have invested hundreds of millions into GCCs in Hyderabad.
- Retail and CPG players like Target, Costco, and PepsiCo use Hyderabad centers for analytics, supply chain, and digital innovation.
- BFSI firms like Wells Fargo, Barclays, and Dai-ichi Life run critical risk, compliance, and AI-driven operations from the city.
For SMEs in the US and EU, this means your peers and competitors are already leveraging Hyderabad to scale faster, smarter, and cheaper.
Pain Points GCCs Solve for SMEs
Decision makers at mid-sized companies often face the same growth bottlenecks:
- High local costs: Expanding dev or ops teams in the US/EU often costs 2-3x more than in India.
- Vendor dependency: Outsourcing partners may cut corners, limit transparency, and restrict flexibility.
- Speed to scale: Recruiting and training large teams locally can take months or years.
- Innovation gap: Without access to AI, cloud, or advanced analytics skills, you risk falling behind larger competitors.
A Hyderabad GCC directly addresses these pain points:
- Lower costs without compromising quality.
- Full control over delivery, IP, and strategy.
- Faster scaling with ready access to skilled talent.
- Future-ready capabilities with GenAI, automation, and R&D talent available on demand.
Why Work With Qatalys?
Setting up a GCC isn’t as simple as leasing an office and hiring people. It requires navigating legal, regulatory, HR, infrastructure, and cultural nuances in India. That’s where Qatalys comes in.
We help SMEs from the US and EU establish and scale GCCs in Hyderabad end-to-end, ensuring your offshore team feels like a natural extension of your organization.
Our Approach
- Strategy & Roadmap: We start with business case validation, location analysis, and delivery model planning. You’ll know exactly what functions to offshore and how to structure them.
- Infrastructure Setup: From cloud environments and DevOps pipelines to secure IT systems and physical office space, we make your GCC cloud-ready, AI-native, and compliant from day one.
- Talent Acquisition: We recruit engineers, data scientists, QA specialists, and GenAI experts who fit your culture and goals. Our network ensures you can scale fast without lowering the bar.
- Operational Support: Payroll, HR, compliance, finance integration – we handle it all, so you can focus on delivery.
- Flexible Models (BOT): Prefer to own your center fully after a few years? Our Build-Operate-Transfer model lets you take over seamlessly once your GCC matures.
What Makes Qatalys Different
- AI-Ready from Day One: GenAI copilots, automation, and analytics baked into every center.
- Modern Engineering Foundation: Cloud-native architecture, DevOps practices, and security-first design.
- Built for Long-Term Growth: We don’t set up short-term cost-saving units; we build innovation hubs that can grow with you.
The Road Ahead
Analysts predict India will host over 2,500 GCCs by 2030, employing 2.5 million professionals. Hyderabad is expected to capture a large share of this growth.
For SMEs, the window of opportunity is now. Costs are still competitive, the talent pool is strong, and government incentives are generous. But as more global firms enter Hyderabad, competition for top talent will rise.
The companies that move early will have the advantage of brand presence, stronger teams, and long-term cost savings.
Final Word
Hyderabad is no longer just an IT outsourcing hub. It’s a global innovation city where companies of all sizes – from Fortune 100 giants to fast-growing SMEs – are building the next generation of products, platforms, and operations.
A GCC here gives you speed, scale, and strategic control without the downsides of outsourcing. And with Qatalys as your partner, you can go from idea to fully functional GCC in months – not years.
If you’re ready to explore how a Hyderabad GCC can accelerate your growth, let’s talk.
Request a Free Consultation with Qatalys to get your custom GCC roadmap.
