Hyderabad is rapidly emerging as a major hub for Global Capability Centres (GCCs) in India. A growing number of Japanese multinational corporations are setting up GCCs in India, particularly in Hyderabad, driven by a mix of demographic challenges in Japan and India’s talent pool and cost advantages.
Why Japanese Companies Are Choosing India
Japan faces significant demographic challenges, with nearly 30% of its population aged 65 and above, causing a shrinking domestic workforce. To overcome these issues, Japanese firms are increasingly turning to India to establish GCCs, leveraging India’s abundant tech talent, cost efficiencies, and favorable infrastructure.
Rapid Growth of Japanese GCCs in India
- The number of Japanese GCCs in India has grown to approximately 85 centers, employing over 180,000 professionals.
- Projections estimate this will double to around 150 GCCs, with 350,000 employees and $2.5 billion in annual investments by 2028.
Hyderabad as a Preferred Destination
Hyderabad stands out as a preferred destination due to:
- A skilled workforce with deep technological expertise.
- Cost advantages compared to other regions.
- A supportive infrastructure including tech parks and business-friendly policies.
Notable Examples of GCCs in Hyderabad
- Dai-ichi Life has recently set up a GCC in Hyderabad to tap into India’s talent and technological capabilities.
- Eli Lilly inaugurated a Technology and Innovation Centre in Hyderabad’s Hitech City, with plans to hire around 1,500 employees by 2026–27, focusing on digital transformation, AI, and cloud computing.
GCC Relocation Trend
This movement is part of a broader global trend where companies are shifting GCCs from Eastern Europe to India. The decision is driven by:
- Rising costs in Eastern Europe.
- India’s expanding talent pool and competitive operating environment.
Companies like SAP, Intel, Google, and IBM are also betting big on India as a strategic base for their GCCs.
Conclusion
Hyderabad’s strategic location, skilled workforce, and robust infrastructure make it an ideal destination for Japanese companies and other multinational corporations looking to establish or expand GCCs. This ongoing trend strengthens India’s position as a global hub for technology and innovation.
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