India’s Dual-Tech Engine: Why Hyderabad’s Rise Complements Bengaluru’s Dominance

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Hyderabad has been making headlines lately, with new global offices and fresh investments signaling confidence in Telangana’s growth story. The city’s latest milestones, McDonald’s largest office outside the US and Marriott International’s first global capability center (GCC), have once again put it on the world map.

Building on that momentum, Marriott International has recently announced the launch of its Marriott Tech Accelerator, the company’s first global capability center in India, located in Hyderabad. The facility will bolster Marriott’s global tech operations across 141 countries, focusing on infrastructure, engineering, and next-gen solutions. 

Drew Pinto, Executive Vice President and Chief Revenue & Technology Officer at Marriott, explained, “We have chosen Hyderabad because of its world-class talent and strong reputation as a major IT hub. We appreciate the close collaboration with the Telangana government and look forward to expanding our best-in-class technology workforce.”

Additionally, global streaming giant Netflix has announced the establishment of a new GCC focused on creative technology in Hyderabad, marking its second major base in India, following Mumbai. The company has secured approximately 41,000 square feet of office space in HITEC City for its new facility, underscoring its intention to scale both content and technological operations from India. 

The GCC Story

While Hyderabad’s momentum is unmistakable, Bengaluru continues to dominate the Indian GCC landscape. According to a Zinnov report, the Indian GCC market is poised to reach between $99 billion and $105 billion by 2030. Of this growing pie, Bengaluru commands the lion’s share, hosting nearly 35% of all GCCs in India, thanks to its deep-rooted startup culture, global connectivity, and Karnataka’s proactive GCC Policy 2024–2029.

Hyderabad, although catching up quickly, has approximately 355 GCCs and is steadily maturing its talent pipeline. 

According to Tracxn data, both cities combined saw 18 new GCC incorporations in 2023, with 10 in Bengaluru and eight in Hyderabad. In 2024, the total dipped slightly to 14, with Bengaluru again accounting for 10 and Hyderabad adding four. By 2025, however, the number of new incorporations had fallen significantly to just four, split evenly between the two cities.

The trend is clear: Even as Hyderabad catches up, gaining visibility and investments, Bengaluru remains the first choice for companies setting up GCCs. Hyderabad, meanwhile, is carving its place as a reliable second hub, a complementary, not competing destination.

The Startup Pulse

When it comes to startups, the story follows a similar pattern. Bangalore continues to be the country’s innovation capital, but Hyderabad is quietly becoming its most consistent challenger. According to Tracxn, Bangalore saw 75 startups formed in 2023, rising sharply to 93 in 2024, before dipping to 34 in 2025, suggesting a post-boom correction amid funding pressures. 

Hyderabad, on the other hand, displayed a steadier graph, growing from 13 startups in 2023 to 22 in 2024, and maintaining 14 in 2025.

The numbers reveal two distinct narratives: while Bengaluru remains the epicenter of India’s innovation ecosystem, Hyderabad’s trajectory reflects a phase of steady maturity, driven by government support and a growing network of incubators, accelerators, and investors.

On the IT Front

Bengaluru’s reputation as India’s Silicon Valley wasn’t built overnight. The city’s tech journey has evolved in distinct waves, from the early 1990s when Infosys and Wipro established Electronics City as their headquarters, to the explosive growth of the Outer Ring Road (ORR) corridor, now housing tech behemoths like Google, Amazon, and Microsoft.

However, rapid success has brought new challenges to the city. Soaring real estate costs, clogged traffic arteries, and overburdened civic infrastructure are prompting companies to relocate to new business districts like Devanahalli and Hebbal, near Kempegowda International Airport. Companies like Amazon and SAP have already set up large campuses there, leveraging better connectivity and available land.

Real estate data reflects this shift: office rentals on Bengaluru’s ORR range from ₹80–110 per sqft per month, while residential rates in areas like Sarjapur and Bellandur have touched ₹12,000 per sqft. Developers are now investing heavily in North Bengaluru, with large-scale integrated projects designed to ease commuting and improve livability.

In contrast, Hyderabad’s appeal lies in its planned infrastructure and affordability. The city’s well-organized clusters, including HITEC City, Gachibowli, and Nanakramguda, have attracted major tech companies such as Google, Microsoft, Apple, and Meta, all within a few kilometers of each other. 

Office rentals in the city are also lower, at ₹60–90 per sqft, while residential prices in Gachibowli and Manikonda range between ₹6,000 and ₹10,000 per sqft. Add to this the Telangana government’s pro-business policies, like TS-iPASS, efficient transport infrastructure, and investor-friendly governance, and it’s easy to see why Hyderabad is becoming a magnet for tech and GCC investments.

The Balancing Act

Yet, even with Hyderabad’s momentum, Bengaluru remains the nerve center for technology and innovation in India. The city’s depth of talent, its research universities, and the dense ecosystem of startups and VCs make it hard to replace.

However, Bengaluru’s challenges are also real. A recent example illustrates this: BlackBuck, a logistics tech company, announced that it would vacate its Bellandur office on the city’s ORR due to poor road conditions and severe traffic congestion—issues that have long plagued the city’s tech corridor.

Similarly, while SAP has expanded northward with a massive new campus, it hasn’t left the old one, signalling that companies are spreading, not fleeing, to manage operational costs and commute times. Amazon India is also shifting its corporate HQ to a location closer to the airport, hinting at a broader geographical rebalancing within the city.

So, while Hyderabad may be stealing the spotlight with big names like McDonald’s and Marriott, Bengaluru’s lead remains unshaken. The city continues to set the tone for India’s GCC and startup landscape, supported by decades of accumulated expertise, ecosystem density, and innovation culture.