HYDERABAD

Hyderabad Shapes Future of India BPO

How infrastructure, innovation and investment are fuelling Hyderabad BPO growth

Hyderabad is a key destination for global business process outsourcing (BPO), thanks to its deep talent pool, robust infrastructure and strong government backing. Combining a rich cultural history with a forward-looking tech ecosystem, Hyderabad BPO is now firmly on the radar for international firms seeking cost-effective, high-quality service delivery. 

Why Hyderabad?

Hyderabad is the capital and largest city of the Indian state of Telangana. It occupies 650 km2 on the Deccan Plateau along the banks of the Musi River, in the northern part of southern India. Hyderabad sits on hilly terrain around artificial lakes, including the Hussain Sagar Lake, with an average altitude of 1,778 ft. Its historic sites include Golconda Fort, a former diamond trading centre that was once the Qutb Shahi dynastic capital. The Charminar, a 16th-century mosque whose four arches support towering minarets, is an old city landmark near the long-standing Laad Bazaar. Hyderabad is known as the City of Pearls due to its 400-year heritage of pearl trading.

Key advantages of Hyderabad BPO include:

Population of 11 million
Strong state government support
National IBPS incentives available
Significant data centre investment
100,000 annual engineer graduates
Private and public infrastructure investments
Rural telecoms investment program
World Green City Award Winner
English widely used for business
T-Aim education investment in AI

Population and language

With a population of 38 million, Telangana is the 13th most populous state in India. The metropolitan area of Hyderabad has a population of just over 11 million, a 2.48% increase from 2023. With a GDP of USD 83.5 billion, Hyderabad ranks among the top five cities in India. Telugu and Urdu are the official languages of Hyderabad. Telugu in Hyderabad has a varied dialect called the Telangana, and the Urdu spoken in the city is called Deccani Urdu. Hindi is often spoken as a second language, particularly among North Indians and in business, while English is widely used in education and business. Residents have embraced planting trees and greenery since 2015, leading to an increase in green coverage from 24% to 33%. In 2022, Hyderabad received the ‘World Green City’ award.

Education and workforce

Children aged 6 to 14 have a constitutional right to free and compulsory education. All students across the country are required to learn three languages: English, Hindi, and their mother tongue, except in regions where Hindi is the primary language. Telangana has prioritized education for all, establishing residential schools (gurukul) under the Telangana Social Welfare Residential Educational Institutions Society’s (TSWREIS) to offer quality education to more than 600,000 children from marginalized communities. Telangana is home to 28 universities. Telangana is home to numerous reputed institutions such as IIT, IIIT Hyderabad, NALSAR, NIPER IIIT Basara, NIT Warangal, and AIIMS Bibinagar. Annually, 100,000 engineering students and 200,000 non-engineering students graduate from the state. Additionally, there are 2,900 junior colleges, 41,360 schools, more than 1,000 degree colleges, 1,300 professional colleges, and many more coaching and training institutions.

Transport and infrastructure

Hyderabad International Airport, also known as Rajiv Gandhi International Airport (IATA: HYD, ICAO: VOHS), with annual passenger numbers in excess of 25 million people, is the fourth busiest airport in India. Hyderabad airport is near Shamshabad, approximately 23 km south of downtown Hyderabad, in the state of Andhra Pradesh. Plans are underway to connect the Hyderabad Metro to the airport. Launched in 2017, the Hyderabad Metro is the third longest metro network in India and one of the world’s longest elevated metros. At its peak, it handles 500,000 passengers a day, making 670,000 journeys. A public-private partnership funds it, with the state government holding a minority equity stake. In October 2024, the Times of India reported the state government has proposed to involve private parties to improve and develop the road network.
Hyderabad
Hyderabad BPO
Hyderabad transport
Hyderabad transport

Telecommunications and connectivity

The Telecom Regulatory Authority of India (TRAI) is the Telecom Regulatory Authority of India Act. India has just under 62 million direct-to-home phone and internet subscribers. In 2015, the Telangana Government set up T-Fiber as the designated ‘State Implementing Agency’ with aims to connect 33 districts, 589 local government areas (Mandals), 12,751 villages. So far, 62,000 miles of cable have been laid, connecting 22,000 villages. India launched its first 5G network in October 2022. India’s 5G network ranks among the top-performing networks globally. The state of Telegana has ten data centers. In June 2024, Microsoft Corporation acquired 48 acres of land about 40 kilometres from Hyderabad to build its third Indian data centre. The launch of the data centre brings forth enhanced cloud services via Microsoft’s Azure platform.

Government support and growth

Telangana’s visionary leadership and progressive policies have propelled the state to the forefront of AI. In August 2023, T-AIM, with the support of NASSCOM, released a study on the State of Artificial Intelligence Ecosystem in Telangana. The 10 core pillars of the study set out the strategy to develop the AI industry. This strategy has been instrumental in attracting significant international infrastructure investment in areas such as education, transport, data centers, telecommunications, and water distribution. The government’s investment is yielding results in education, as colleges in Telangana annually graduate 10,000 postgraduates and 450 PhD holders with relevant skill sets for the AI domain. The department of IT, Government of Telangana, has set a target to train 100,000 students in basic AI skills.

BPO services

In the second half of the 1980s, American Express outsourcing back-office operations in Gurgaon. General Electric followed in the 1990s and set-up of its GE Capital International Services in Gurgaon. By 2006, the BPO industry in India employed some 400,000 people and was worth USD 7.2 billion to the economy. In the early 2000’s, the integration of cloud computing into BPO services further accelerated BPO growth in India. After 2022, rapid advances in artificial intelligence (AI) and generative AI led to the development of automated customer service tools and improvements in chatbots. Outsourcing, including BPO and Information Technology Enabled Services (ITES), is expected to contribute US$225-250 billion to the Indian economy by 2025 and employs 4 million people.

Hyderabad’s expanding BPO industry reflects its status as a powerhouse for tech-driven outsourcing. With world-class infrastructure, strong policy backing and an elite talent pool, Hyderabad BPO is helping to reshape the global call and contact center service outsourcing.

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