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How global capability centres deliver value for healthcare companies

Many multinational corporations use global capability centres (GCCs), allowing them to employ a skilled offshore talent pool. 

These centres often represent a substantial percentage of their global workforce covering operations, business services, technology and transformation. In this blog we look at how pharmaceutical companies have adopted this business model and why India has become the preferred GCC location for many companies.

The evolution of GCCs

GCCs began in the early 1990s when companies realised they could achieve savings on labour by making use of overseas talent pools. As companies and GCCs have matured they have developed as centres with extensive domain expertise. GCCs now have the process knowledge, experience and quality to deliver significant value to their parent companies. 

There are GCCs across the globe, in Latin America, Eastern Europe and Southeast Asia. However, India has emerged as a preferred choice with more than 1,700 GCCs representing US$64 billion market size1. This number is poised to grow at a 10% compound annual growth rate. It is estimated that one GCC is added each week, contributing 1-2% of India’s gross domestic product (GDP)1.

Healthcare GCCs

Healthcare companies were early adopters in setting up GCCs and there has been a surge in their set up in recent years. Indian-based pharmaceutical GCCs have become primary hubs with thousands of employees and growing. The Organisation of Pharmaceutical Producers of India says there are almost 40 pharma GCCs in India2. Large pharmas including Eli Lilly, Sanofi, BMS, Takeda, Astra Zeneca and Amgen have either set up, or are in the process of setting up, GCCs. Bangalore has the highest number of GCCs in India.

Healthcare GCCs will have teams covering both industry-specific and broader operational needs. Pharma-related activities include drug development, clinical, data management, biostatistics, medical writing, regulatory and pharmacovigilance. Operational requirements covered include HR services, finance, procurement, legal, risk and compliance, and commercial.

Why India has become an established GCC marketplace

Because India has a mature GCC market, there is an established talent pipeline available to cover these business-critical responsibilities. In India, there are 2.4 million STEM graduates each year, and the figure continues to rise3. In spite of salary increases, India has a cost advantage compared with to other regions. 

The Indian government has provided policy support in the form of tax benefits, infrastructure supports and grants. There are also special funds for AI and university-industry partnerships to bridge the gap between academia and industry. All of this makes India an attractive place for healthcare GCCs and for clinical trials. 

ICON in India

ICON has operated in India for over 20 years. It has evolved into a GCC model, representing a significant percentage of the workforce, driving operational excellence and innovation. Over that time, we’ve built a team with deep expertise, giving us an advantage over newer companies trying to establish Indian bases in less time. With over 4,500 professionals based in our Chennai, Bangalore, and Trivandrum offices, and working remotely in over 18 states, ICON has established a formidable local presence in India. Our Indian-based senior leaders understand how to foster collaboration between local and global teams to deliver more value for our customers. 

In India, ICON covers a range of services for pharmaceutical and biotech companies including:

Clinical trial study experience in the last five years has covered 14 therapeutic areas including oncology, infectious diseases and vaccines, and cardio-metabolic disorders. ICON has developed a talent pipeline in India, ensuring sustainable, high quality services for our customers. Services can be delivered as consulting, standalone, FSP, blended or full service.

Conclusion

Companies will continue to evolve to find the optimal balance between insourcing and outsourcing. As GCCs have matured, the focus has shifted from being solely about cost-savings to delivering value for client companies. Getting the most from GCCs requires trust, collaboration and transparency. Choosing to partner with an established GCC can ensure companies reap the benefits and achieve their goals faster, better and at the best value.  

Contact us to learn how ICON’s GCC expertise and tailored solutions can help you navigate India’s dynamic healthcare market and how we can support you to effectively establish and operate GCCs that drive clinical trial success.

Author

Nagalakshmi Shetty

Country Head India & Vice President, Clinical Data Science

References:

1 NASSCOM & Zinnov. (2024). India GCC landscape report: The 5-year journey. National Association of Software and Service Companies (NASSCOM). Retrieved from https://nasscom.in/knowledge-center/publications/india-gcc-landscape-report-5-year-journey

2 Organisation of Pharmaceutical Producers of India (OPPI). (2024). Global Capabilities Centres. Retrieved from https://www.indiaoppi.com/wp-content/uploads/2024/05/GCCReport1.pdf.

3 National Association of Software and Service Companies (NASSCOM). (2023). India tech industry digital talent demand and supply 2023. NASSCOM. Retrieved from https://nasscom.in/knowledge-center/publications/india-tech-industry-digital-talent-demand-and-supply-2023

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