Manufacturing and transport companies have overtaken banking, financial services, and insurance (BFSI) firms to become the primary engine of India's global capability centre (GCC) expansion. According to HFS Research, manufacturing and transport firms accounted for 30% of new tech centres in the first nine months of 2026, up from 20% in 2025, while BFSI's share collapsed to just 5.4% from 16% last year. This industrial shift reflects companies scrambling for greater tech ownership in the AI era and large-scale engineering talent that India offers. At least 74 new GCCs were announced in the first nine months of 2026, with manufacturing firms establishing 23 centres across capital goods, chemicals, consumer durables, materials, tech hardware, and transport sectors.
Hyderabad continues to lead India's GCC expansion with more than 70 GCCs added in financial year 2024-25, bringing its total count to more than 515 centres and workforce to over 300,000. According to HFS Research, Hyderabad accounts for 33% of new GCCs in 2026, outpacing Bengaluru which holds 18% of new centres, down from 30% in 2025. The city now represents about a fifth of India's GCC base as of March 2026, positioning it as a key destination for global companies seeking specialized capabilities in technology, financial services, life sciences, engineering and other corporate functions. Healthcare and life sciences GCCs saw an uptick, rising from roughly 11% in FY25 to 16% in the first nine months of 2026.
Syneos Health has opened a 137,000-sq-ft Global Life Sciences and Technology Centre in Hyderabad, the company's largest in Asia and third-largest globally, with an initial workforce of more than 700 professionals. In February, ArcelorMittal announced hiring around 2,000 people at its Pune and Hyderabad offices to manage IT modernization, data analytics, cybersecurity, finance, human resources and project management of its Europe operations. Southwest Airlines inaugurated its first tech centre in May, planning to hire about 1,000 people to handle AI, data science and analytics, digital modernisation, cybersecurity, and software product development. Smaller cities are also participating, with Bain Capital-backed Milacron establishing its first GCC in Coimbatore in July, hiring 60 professionals to handle IT operations.
With Syneos Health joining the ecosystem, four of the world's top five Contract Research Organisations (CROs) now have a presence in Hyderabad, adding further depth to the city's clinical research and life sciences capabilities. Global companies including MSD, Sanofi, Bristol Myers Squibb, Eli Lilly and Amgen are building capabilities across the value chain from research and development to data, technology and AI. The city's appeal stems from its large technology workforce of about one million IT workers and production of more than 400,000 STEM graduates each year. India currently has about 2,000 GCCs, according to Nasscom, which expects the number to reach 2,200 by March 2030, propelling the market size to $105 billion. The established office corridors include HITEC City, Madhapur, Gachibowli and the Financial District, with the Financial District-Kokapet corridor emerging as an important location.
The momentum is expected to continue with another 50-70 GCCs potentially coming to Hyderabad, generating 8-12 million sq ft of additional office demand over the next three to five years. According to HFS Research, manufacturing has emerged as the fastest-growing sector among new entrants, with companies pushing to digitize operations through AI. Cost reduction is another primary factor driving India expansion, as companies seek cost-saving locations amid Middle East conflicts affecting supply chains. The primary driver remains a push to digitize operations through AI, with mid-market firms having annual revenue of less than $5 billion driving the shift despite supply chain uncertainties. The city's success will depend on maintaining the combination of talent availability, cost competitiveness, and infrastructure that has attracted the current wave of global capability centres.
