Hyderabad: Hyderabad s offshoring market witnessed a substantial leasing volume of 6.6 million square feet (mn sq ft) in the calendar year 2023, according to a report by Knight Frank. This figure marks a significant surge from the previous year, highlighting the citys growing importance in the offshoring sector.
The offshoring market in Hyderabad accounted for the second-highest office transactions among eight major offshoring markets in India, constituting 32 per cent of the total transactions. This growth trajectory reflects a robust increase of over 53 per cent year-on-year (YoY) compared to 2022, where leasing stood at 4.3 mn sq ft.
In Knight Franks latest report titled Asia Pacific Horizon: Harnessing the Potential of Offshoring, India emerges as one of the leading offshoring destinations globally. The Indian offshoring market claimed a substantial share, leasing over 46 per cent of the countrys office space in 2023. Within India, Hyderabads offshoring market played a pivotal role, contributing significantly to this leasing volume surge.
Viral Desai, Senior Executive Director at Knight Frank India, highlighted Indias transformation from a cost-effective center to a value-adding captive center. The report forecasts continued growth in Global Capability Centres (GCCs) within India, potentially driving the office market in the coming years. By 2030, India is estimated to host around 2,400 GCCs, solidifying its status as a global technology and services hub.
Offshoring has emerged as a crucial catalyst driving office demand also in other key APAC hubs like the Philippines, Malaysia, and Vietnam. Companies globally are turning to offshoring functions as a strategic avenue to minimize costs, contributing significantly to the growth of the offshoring industry in these regions.
The report also sheds light on the impressive growth trajectory of Indian IT service exports, expected to reach USD 230.5 billion by 2025.
