Hyderabad well suited for Global Capability Centres: KT Rama Rao

Hyderabad: Industries and IT Minister KT Rama Rao asked the IT and allied industries to take advantage of the proactive Telangana policies, availability of talent and presence of innovation ecosystem here to set up their Global Capability Centres (GCCs) in Hyderabad. The GCCs are captive centres that handle operations (back-office functions, support functions, and contact centres) and IT support to enhance productivity. Some large companies use GCCs as a centre of excellence as well.

Speaking at Nasscom GCC Conclave – 2022  held in Hyderabad on Thursday, he said Microsoft, Google, Amazon, Apple, Wells Fargo, Bank of America, HSBC, Franklin Templeton, Broadridge, ADP, J P Morgan, Novartis, Deloitte and others already have their GCCs in Hyderabad. In the last five to seven years, several new players like the like DBS Bank, Pepsi, Chubb, Mass Mutual, Goldman Sachs, Swiss Re, Advanced Auto Parts, Arcesium, GAP, ZF, State Street, Intel, ICE, F5 Networks, Micron, and Callaway Golf have chosen Hyderabad for their GCCs.

Telangana Academy for Skill and Knowledge (TASK), which focuses on building talent, runs induction programmes tailored for the requirement of the GCCs at its own cost. No other State offered such an arrangement. “For those of you who are present in Hyderabad, we are there to support your growth here. For those who are not present, we will be happy to be a part of your growth story,” he said.

In India, there are 1,500 GCCs and about ten per cent of them have come in in the last two years. About 65 per cent of the GCCs set up in India are headquartered in the Americas, specifically the USA, followed by the UK and the European Union.

“Hyderabad IT sector created about 1,50,000 jobs in 2021-22. It implies that about 33% of the net new jobs in India are generated in Hyderabad. The direct IT employment has reached close to 8 lakhs from about 3 lakh when the State was formed in 2014. The State achieved these successes despite no ITIR.

“Our infrastructure compared to other cities is unparalleled. You can reach your IT destination from the International Airport or any prominent location in the city in less than an hour,” he said. Hyderabad has good internal roads in addition to the 70 km metro rail connectivity. Plans are also on for an Elevated Bus Rapid Transit System (EBRTS) from Kukatpally Housing Board to Kokapet. As many as 30 flyovers have been constructed under the Strategic Road Development Programme. In all, 47 flyovers have been planned, Rama Rao said, adding that Hyderabad has been adjudged as the most liveable city in India for six years in a row by Mercer, a globally reputed agency.

About a third of the employees working in any IT company in India are estimated to be from Hyderabad and surrounding areas. Telangana produces about one lakh engineers every year. The attrition levels in Hyderabad are half of those at other metro cities, he said. The Government has recently announced its second ICT Policy. It also announced a Growth In Dispersion policy to encourage companies to look at other parts of Hyderabad and not just the western side. There is also immense scope in the EV segment as the State is setting up a Mobility Valley to promote the electric vehicle ecosystem. Under this, the State is working with large OEMs, suppliers, technology companies, and global operators across the globe to create a comprehensive mobility ecosystem in India. “Telangana has an approachable Government that is willing to listen to the industry all the time,” he said.

Telangana only two days ago launched T-Hub 2.0, India’s largest innovation engine. Other initiatives like the WeHub, Tworks, RICH, TSIC are the ecosystem enablers in the city. The State’s Emerging Technologies wing also focuses on adoption and talent creation in artificial intelligence, machine learning, blockchain, cloud, robotics, drones, additive manufacturing and others. Hyderabad also has Cyberabad Security Council, an arrangement between the Police Department and the IT Industry to ensure security, women safety, traffic regulation, and cyber security in the IT corridors.

GCC success stories in Hyderabad

*Uber started with 500 employees, now crossed 2,000 and still expanding

*ZF (Germany) launched in 2017 with 1,000 employees target in five years. Its headcount has now crossed 3,000 and expanding

*DBS that set up a GCC in 2016 with a projected headcount of 1,000 in 5 years, have crossed 3,000. It opened up a retail presence here in  Hyderabad

*Micron set up its engineering and R&D unit five years ago. It now has its largest presence in Hyderabad globally after its headquarters

*Microsoft, Google, Amazon, Google, Apple, Wells Fargo are all large GCCs that have expanded and made Hyderabad their second home after their headquarters