Hyderabad is rapidly establishing itself as a leading center for artificial intelligence (AI) products and services, according to a new report released by the International Labour Organization (ILO).
The report, titled ‘India as a Digital Services Market Hub’, highlights the growing prominence of Indian cities in the global digital economy while addressing the evolving job market landscape shaped by AI technology.
Currently, India hosts approximately 1,700 Global Capability Centers (GCCs), with projections indicating this number will surge to 2,550 by 2030. The cities of Hyderabad, Bengaluru, Ahmedabad, and Mumbai are identified as the primary centers for these GCC establishments.
The ILO report acknowledges that while AI poses some threat to entry-level positions, it recommends that organizations, workers, and job seekers strategically adopt this technology to overcome challenges. The report emphasizes encouraging industrial clusters to increase job opportunities and attract foreign investment.
India’s Digitally Delivered Services (DDS) exports are valued at $269 billion, positioning the country as the fifth largest globally. Between 2022 and 2024, India’s annual growth rate in this sector has exceeded that of both the United States and China.
Maharashtra, Karnataka, Delhi, Tamil Nadu, Gujarat, and Telangana have been particularly strong in attracting foreign investment over the past six years, the report states.
India’s demographic advantage is significant, with 25 million individuals aged 25-29 holding university degrees or higher education qualifications. An additional 14 million are currently pursuing higher education, representing an educated youth population unmatched globally.
The report reveals that 49% of IT sector workers are young professionals, while 34% are employed in financial services. However, IT workers face longer working hours, with computer programming professionals averaging 58.6 hours per week, compared to 37.9 hours in agriculture and 45.7 hours in other sectors.
Regarding Telangana specifically, the report highlights that Hyderabad’s AI activities are contributing significantly to sectoral growth. The state government is focusing on tax incentives, digital infrastructure development, and providing rent and maintenance subsidies for new GCCs for up to five years. Universities are also updating curricula to meet GCC recruitment requirements.
The number of GCCs in Telangana has shown steady growth, increasing from 34 in 2020 to 38 in 2023, according to the report data.
