Hyderabad is emerging as a strong contender to become India’s new Silicon City, surpassing Bengaluru and Delhi in global service delivery . The city’s IT sector is poised to overtake Bengaluru, which has long held the title of India’s Silicon Valley and IT capita.
Hyderabad, the “City of Pearls,” is undergoing a remarkable transformation, positioning itself as the new tech powerhouse in India, poised to challenge and possibly surpass Bengaluru as the country’s premier technology hub. This remarkable shift in India’s tech landscape can be attributed to a powerful combination of factors that have propelled Hyderabad to the forefront.
Hyderabad’s rapid ascent as a technology hub is a remarkable story of transformation in the Indian landscape. For decades, Bengaluru held the coveted title of India’s Silicon Valley and IT capital, but Hyderabad is now poised to surpass it. This impressive achievement can be attributed to a powerful trifecta of factors that sets Hyderabad apart.
First and foremost, the city boasts a wealth of high-quality talent, attracting tech-savvy professionals from across the nation and the world. The influx of skilled individuals has invigorated the local tech ecosystem, driving innovation and growth.
Secondly, Hyderabad has made substantial investments in state-of-the-art infrastructure, creating an environment conducive to technological advancements. The city’s modern technology parks, top-notch connectivity, and contemporary office spaces have all contributed to its burgeoning success.
The third pillar of Hyderabad’s achievement is unwavering government support. The local administration has actively fostered a business-friendly atmosphere, offering incentives and assistance to companies looking to establish or expand their operations within the city.
In the first half of 2023, Hyderabad witnessed a surge in global companies establishing or expanding their Acceleration Centers, Centers of Excellence (CoEs), Centers of Innovation, and R&D centers, totaling more than 40 new entrants. This rapid growth has propelled Hyderabad ahead of Bengaluru in the Global Capability Center (GCC) landscape, a noteworthy milestone.
This transformation extends beyond just the IT sector. The city’s share of tech jobs in India has risen from 33% to 44% between 2021 and 2022, reflecting Hyderabad’s growing prominence in the technology job market. Simultaneously, the demand for non-tech services continues to grow, a testament to strong investor confidence.
Hyderabad has traditionally been renowned for its pharmaceutical enterprises, but its appeal now extends to a diverse array of industries. The city has successfully attracted Fortune 500 giants from sectors such as aerospace, manufacturing, retail, pharmaceuticals, and professional services.
Moreover, Hyderabad’s diversity shines through in the wide range of services offered by companies based there. For instance, global players like Goldman Sachs, FedEx, and Lloyds Banking Group are expanding their service offerings in the city, spanning engineering, supply chain optimization, cybersecurity, and more. Other organizations, including Apollo Tyres, DAZN, Ocugen, Pi Square, and Warner Bros. Discovery, are utilizing Hyderabad for a myriad of services.
This diversity is coupled with a keen focus on future readiness. Hyderabad is emerging as a hub for cutting-edge technologies, offering services in areas like artificial intelligence, cloud computing, IoT, machine learning, natural language processing, robotic process automation, and augmented/virtual reality. With such a dynamic landscape and a commitment to innovation, Hyderabad is not just challenging the old order; it’s paving the way to becoming India’s new Silicon City, outpacing competitors and setting a new benchmark for technological progress in the country.
