Every month, a new conversation begins the same way: a US-based VP of Engineering stares at a map of India, trying to decide which city will become the foundation of their company's Global Capability Center. The choice feels consequential because it is. Pick the right city, and you unlock world-class engineering talent at sustainable costs. Pick the wrong one, and you'll wrestle with attrition, inflated budgets, and scaling roadblocks that slow your product velocity.
India isn't just another offshoring destination anymore. It's the GCC capital of the world, home to over 1,600 capability centers that power everything from AI research at Microsoft to product development at Goldman Sachs. As global companies evaluate India expansion, understanding why investing in India has surged is essential. But within this massive opportunity lies a critical strategic question: Pune, Bengaluru, or Hyderabad?
This isn't a matter of personal preference. It's about matching your company's technical needs, growth trajectory, and cultural priorities with the right ecosystem. Let's break down how to make this decision systematically.
Before diving into city-level nuances, it's worth understanding why India has become the undisputed leader in GCC growth. The country graduates over 1.5 million engineers annually, creating an unmatched talent density that few nations can rival. Unlike traditional outsourcing hubs, India has evolved into a product engineering powerhouse where GCCs own full-stack development, drive innovation roadmaps, and contribute directly to competitive differentiation.
The ecosystem has matured dramatically. Companies no longer set up cost centers, they build strategic engineering hubs that operate as core parts of their global technology organization. Deep expertise in AI, machine learning, cloud infrastructure, and data engineering has made Indian teams indispensable for cutting-edge product development.
Cost advantages remain real but have become more sophisticated. It's not just about salary arbitrage anymore. It's about building high-performing teams at 40-60% lower costs while maintaining quality standards that match or exceed domestic teams. The regulatory landscape has improved significantly, making entity setup, compliance, and operations far more predictable than a decade ago.
Perhaps most importantly, India offers time-zone leverage that enables true 24/7 development cycles. Engineering teams in India can push code overnight, run tests, and hand off polished work to US teams by morning, effectively doubling your development velocity.
To understand why Pune is becoming a global tech talent hub, you need to see it within this broader national context where tier-one cities are competing aggressively for GCC investments.
Smart GCC location decisions aren't made on gut feel. They require evaluating a framework of interconnected factors that will determine your success over a 3-to 10-year horizon.
Talent availability and seniority depth matter more than raw headcount. Can you hire 10 senior backend engineers in 90 days? What about 5 ML engineers with production experience? Hiring velocity determines whether you're constantly playing catch-up or actually executing your roadmap.
Cost structures extend beyond salaries. Real estate costs in premium tech parks, operational overhead, and infrastructure expenses vary dramatically across cities. Understanding the full cost picture prevents budget surprises as you scale.
Attrition patterns can make or break your execution. A 5-10% difference in annual attrition translates to massive recruiting costs, knowledge loss, and timeline delays. Quality of life isn't a soft factor, it directly impacts whether your best engineers stay for years or leave after 18 months.
The university ecosystem determines your talent pipeline strength. Are you near IITs, NITs, or strong engineering colleges that supply fresh graduates? Infrastructure, from metro connectivity to modern tech parks, affects daily operations and talent attraction.
GCC maturity in a city means you'll find established playbooks, experienced hiring partners, and a talent pool familiar with GCC work culture. Finally, long-term scalability ensures the city can support your growth from 20 engineers to 200 without hitting talent ceilings.
For a strategic understanding of GCC lifecycle maturity, see how offshore GCC partnerships evolve from initial setup through to becoming strategic innovation centers.
Pune has quietly become one of India's most compelling GCC destinations, particularly for companies prioritizing retention and product-thinking engineers. The city's engineering culture leans heavily toward building products rather than just executing tickets, a distinction that matters enormously for companies trying to move fast.
Strengths: Pune delivers India's highest retention rates among major tech hubs, often running 5-8 percentage points lower than Bengaluru. Engineers here tend to value stability and long-term growth over frequent job-hopping. The city has developed strong capabilities in AI, ML, and data engineering, with several unicorns and major GCCs investing heavily in advanced technical functions.
Operational costs run 15-20% lower than Bengaluru across salaries, real estate, and infrastructure. The work-life balance is notably better, with shorter commutes, better air quality, and a more livable urban environment. This isn't just quality-of-life fluff, it translates directly into productivity and retention.
Weaknesses: The senior talent pool, while growing, remains smaller than Bengaluru or Hyderabad. Finding 15 principal engineers or 10 engineering managers with 12+ years of experience takes longer. Niche skills in areas like embedded systems or specialized infrastructure work can be harder to source quickly.
See how Aumni helped companies build strong Pune teams in this Pole Star Global case study.
Bengaluru remains the undisputed heavyweight of Indian tech. If you need the deepest possible bench of senior engineering talent, access to specialized skills, or want to tap into India's most mature startup ecosystem, Bengaluru is likely your answer.
Strengths: The city hosts India's largest concentration of senior engineers, with more architects, principal engineers, and technical leaders than any other location. The tech ecosystem is unmatched, home to hundreds of startups, numerous unicorns, and major R&D centers from Microsoft, Google, Amazon, and virtually every global tech company.
Deep expertise exists across AI/ML, cloud architecture, DevOps, infrastructure engineering, and data platforms. The hiring infrastructure, from specialized recruiters to networking events, is the most developed in India. If you need to hire 50 engineers in 60 days, Bengaluru offers the volume and velocity to make it possible.
Weaknesses: Success in Bengaluru comes at a premium. Salaries run 25-35% higher than other tier-one cities, and real estate costs for premium office space can be 40-50% more expensive. High competition for talent drives aggressive counter-offers and frequent job changes, pushing annual attrition rates above 20% in many companies.
To understand engineering velocity in competitive hubs like Bengaluru, explore From Backlog to Breakthrough.
Hyderabad has emerged as the dark horse in India's GCC race, combining excellent infrastructure with cost efficiency and increasingly strong technical talent. The city's growth trajectory over the past five years has been remarkable, with major GCCs from Apple, Amazon, Google, and Microsoft expanding aggressively.
Strengths: Infrastructure in Hyderabad is genuinely world-class. The HITEC City and Financial District areas offer modern tech parks, excellent metro connectivity, and reliable power and internet. State government support through programs like TS-iPASS has made setup and scaling remarkably smooth.
Engineering talent quality is high, with strong representation from top-tier universities and a growing pool of experienced professionals relocating from other cities. Attrition rates run lower than Bengaluru, typically in the 15-18% range, offering better stability. The cost environment enables efficient scaling, with salaries 15-20% below Bengaluru while maintaining quality.
Weaknesses: Hyderabad's engineering culture skews slightly more toward enterprise and services rather than the product-first mindset found in Pune or Bengaluru. The city is strong but may require more effort to build a startup-style product engineering culture.
Hyderabad's cultural alignment dynamics mirror insights from our guide on Offshore GCC Cultural Alignment.
When it comes to talent availability and engineering depth, Bengaluru leads in seniority distribution and sheer volume of experienced engineers. Hyderabad follows closely, while Pune offers a smaller but rapidly growing senior talent pool. For product engineering culture, Pune shows particular strength, while Bengaluru dominates AI/ML and cloud specialization.
For engineering execution insights, visit Agile Workflows for Offshore Teams.
Cost structures clearly favor Hyderabad as the most efficient option for large-scale growth. Pune offers a balanced cost-quality tradeoff, while Bengaluru commands premium pricing across all cost categories. Smart companies use our Offshore Savings Calculator to model real costs before committing.
Attrition and stability patterns are stark. Bengaluru's fast-moving environment creates high churn, Hyderabad delivers steady and enterprise-friendly retention, while Pune consistently shows the most stable retention rates. Learn why cultural alignment impacts GCC outcomes in Cultural Alignment for Offshore Teams.
For infrastructure and scaling ease, Hyderabad leads in physical infrastructure, while Bengaluru offers the strongest hiring infrastructure. All three cities can scale from 50 to 500 employees, but the path differs significantly. For compliance and HR frameworks, refer to the EOR 2.0 Offshore Engineering Framework.
Choose Pune if you want stable retention, need product-thinking engineers who take ownership of outcomes, and want high-quality engineering at moderate cost. Pune works best for companies building consumer products, SaaS platforms, or any scenario where engineering continuity and product mindset drive competitive advantage.
Choose Bengaluru if you need deep technical specialization, require senior engineering density for complex technical challenges, and want access to India's most mature ecosystem. Bengaluru is ideal for companies tackling hard technical problems in AI, infrastructure, or specialized domains where access to elite talent justifies premium costs.
Choose Hyderabad if you want enterprise-grade infrastructure, value scaling efficiency with strong governance, and prioritize cost management without sacrificing quality. Hyderabad suits companies planning aggressive headcount growth or those with enterprise engineering cultures.
For early-stage companies evaluating India expansion, see How Offshoring Empowers Startups.
Increasingly, sophisticated companies are adopting multi-city strategies. Start in Pune for product engineering stability, then expand into Bengaluru when you need specialized senior talent. Or begin in Hyderabad for cost-efficient scaling, then add Pune for retention-sensitive functions.
Some companies start with an ODC model in Hyderabad, validate the operating model, then convert to a full GCC across Pune and Bengaluru. Two-city GCCs provide redundancy, talent diversification, and the ability to optimize different functions for different city strengths.
Scaling challenges that push companies toward hybrid models often resemble patterns described in When EOR Stops Scaling.
At Aumni, we've helped dozens of companies navigate this exact decision. Our multi-city expertise spans all three hubs, backed by real-world execution playbooks that have scaled teams from initial hires to hundreds of engineers. We maintain deep networks across Pune, Hyderabad, and Bengaluru, with proven frameworks for everything from entity setup to cultural integration.
See execution examples in our case studies.
The choice between Pune, Bengaluru, and Hyderabad isn't about finding a universally best city. It's about finding the right city for your specific needs, growth stage, and strategic priorities. The companies that win in India are the ones who make this decision strategically, with clear criteria and realistic expectations about each location's strengths and tradeoffs.
Book a strategy call with Aumni's India expansion experts to map your specific requirements to the right city and build a GCC that becomes a competitive advantage.
There is no single best city. Pune is ideal for product-focused teams and long-term retention, Bengaluru offers the deepest senior engineering talent, and Hyderabad works best for cost-efficient, enterprise-scale GCCs. The right choice depends on hiring velocity, budget tolerance, and growth plans.
2. Is Bengaluru too expensive for a new GCC in 2026?
Bengaluru remains viable but expensive. Salaries are typically 25–35% higher than other tier-one cities, with higher attrition and office costs. It makes sense when senior talent density and specialized skills justify the premium.
3. Why are companies choosing Pune for GCCs over Bengaluru?
Companies choose Pune for lower attrition, stronger product engineering culture, better work-life balance, and 15–20% lower operating costs. Pune is especially attractive for SaaS and product-led companies that value engineering continuity.
4. Is Hyderabad good for scaling a large GCC?
Yes. Hyderabad is one of the fastest-growing GCC hubs in India, offering modern infrastructure, strong government support, and lower costs than Bengaluru. It is particularly suited for scaling teams from 50 to 500+ engineers efficiently.
