As per a report by talent solutions provider- Careernet, Hyderabad is cropping up as the second most preferred city after Bengaluru for BFSI companies intending to establish and extend their Global Capability Centres (GCCs) in India. The BFSI includes insurance, banking, and financial services, and encompasses companies that provide a wide range of financial services and products. Companies set up Global Capability Centres (GCCs) globally to leverage expertise, global talent, and resources for the enhancement of their operations. The report also puts a spotlight on Hyderabad- The city is becoming more and more attractive to BFSI professionals who want to relocate here. This places Hyderabad in the second position to Bengaluru.
All thanks to Hyderabad’s economic real estate, outstanding connectivity, vigorous educational framework, and a proliferating startup ecosystem among other factors that contribute to Hyderabad's growing appeal.
Hyderabad’s affordable real estate market is the primary reason why BFSI companies are seeking to relocate here and set up GCCs in the city. According to a report by JLL India, one can find some of the lowest commercial rent rates in Hyderabad compared to other major Indian cities. The average office space costs are typically lower than that of Mumbai or Bengaluru. This economic advantage allows the companies to invest more in technology and talent acquisition, rather than being bothered by the high expense of real estate.
Furthermore, Hyderabad’s real estate sector features high-end, modern infrastructure. One can find ample Grade-A office spaces in the city that meet the needs of global corporations. The development of IT hubs like HITEC City and the Financial District has provided BFSI firms with access to high-quality office spaces that are equipped with state-of-the-art amenities, making the city a cost-effective choice for GCCs.
BFSI GCCs operate on a global scale and here’s where Hyderabad emerges a boon! The city boasts outstanding connectivity, both domestically and internationally. One of India’s major airports- the Raviv Gandhi International Airport, provides direct flights to key international financial hubs like Singapore, London, and New York. This streamlined connectivity enables global business travel and offers seamless business operations.
An extensive network of roads and public transportation, including an advanced metro system facilitates seamless intra-city travel. Commuters can easily save time and travel between their workplace and homes- all thanks to the Outer Ring Road and the strategic flyovers for improving connectivity.
Hyderabad houses some of the country’s premium educational institutions which are known to provide world-class education, particularly in the fields of engineering, technology, and management. The International Institute of Information Technology (IIIT), the Indian School of Business (ISB), and the University of Hyderabad are some of the renowned institutions in the city that provide industry-oriented programs and are celebrated for their academic excellence.
These institutions not only gift the workforce with talented professionals but also collaborate with industries to provide specialized research and training, customized to the needs of specific sectors like BFSI. The city’s robust educational framework enables the GCCs to find and retain skilled individuals. Hyderabad’s budding, dynamic, and technological advancement attracts BFSI firms who are looking to tap into innovative solutions to maintain a competitive edge.
Deep-tech startups in Hyderabad
Hydrebad’s thriving startup ecosystem is yet another reason why BFSI firms are seeking to relocate here and establish GCCs. With the government actively bolstering the startup ecosystem with initiatives like T-Hub and We Hub, the city is known as one of the country’s most proliferating and leading startup hubs. T-Hub is one of India’s largest incubators, whereas We Hub is a state-run incubator for women entrepreneurs.
The ever-growing startup culture in the city helps in nurturing innovation and collaboration, thus offering the BFSI companies access to a potent environment, enabling partnerships with startups for the development of cutting-edge solutions. The city’s focus on fintech, in particular, aligns well with the needs of BFSI firms, offering opportunities to explore emerging technologies such as blockchain, artificial intelligence, and cybersecurity.
The Telangana Government’s business-friendly and enterprising policies further add to Hyderabad’s intrigue. Now the setting up process for business has been made more streamlined with government initiatives like TS-iPASS which is a single window clearance system. Investments from global companies are welcomed in the city with various incentives like subsidies and tax breaks.
The government’s promise to transform Hyderabad into a propitious business haven, paired with its focus on infrastructure development is what positions Hyderabad as the top choice among companies who are seeking to expand their global footprint.
