From Technology to Wet Labs: India’s Next Frontier in Life Sciences GCCs

India has emerged as a global powerhouse for Global Capability Centers (GCCs), hosting over 825 centers for 450+ Forbes Global 2000 companies as of 2024, with projections to surpass 620 Forbes Global 2000 companies by 2030 and employing 1.9 million+ professionals. Among the most transformative sectors leveraging India’s GCC ecosystem is Life Sciences, which contributes 11% of India’s GCC landscape. With Global Capability Centers (GCCs) becoming strategic hubs for healthcare, pharmaceuticals, and biotechnology companies, India is cementing its position as the world’s go-to ecosystem for transformative healthcare solutions.

India’s appeal as a Life Sciences hub stems from its unique combination of talent, cost efficiency, and infrastructure hosting a diverse range of companies in the Life Sciences sector, with significant representation in Hyderabad and Bengaluru. While conventionally focused on digital technologies, India offers untapped potential for integrating wet labs into GCCs, enabling end-to-end innovation in healthcare and life sciences.

Let’s delve into India’s ecosystem for Life Sciences GCCs and why companies should consider expanding GCCs beyond technology.

Technological Transformation in Life Sciences GCCs

Life Sciences GCCs in India are no longer just operational centers. They have evolved into strategic hubs for global innovation. Key technological capabilities include:

• AI and Machine Learning: Transforming healthcare delivery through predictive analytics and personalized medicine.
• Data Analytics: Revolutionizing clinical trials and healthcare resource management with over 90% of GCCs adopting data-driven approaches.
• Cloud Computing and Cybersecurity: Ensuring scalability and data security for global healthcare solutions.
• Generative AI: Driving advancements in diagnostics, patient engagement, and virtual healthcare experiences.

Beyond Technology: Wet Labs in GCCs

While GCCs in India have traditionally focused on tech-centric operations like AI, data analytics, and IT, integrating wet lab capabilities offers a transformative opportunity. Wet labs are essential for physical experimentation in life sciences, including drug discovery, molecular biology, and clinical research. Companies can enhance their innovation pipelines by leveraging India’s unique ecosystem for wet lab integration.

India's ecosystem offers several advantages for setting up wet labs as part of GCCs:

1. World-Class Research Institutions: India hosts premier institutes like the Indian Institute of Science (IISc), National Centre for Biological Sciences (NCBS), All India Institute of Medical Sciences (AIIMS), etc. These institutions are hubs of scientific research and provide opportunities for collaboration on advanced healthcare projects.
2. Rich Talent Pool: Beyond digital expertise, India has a robust pool of proficient scientists specializing in Drug Discovery, biotechnology, molecular biology, and clinical research. This workforce is skilled in conducting high-quality R&D, from preclinical studies to advanced drug development.
3. Growing Biotech Hubs: Cities like Hyderabad (Genome Valley), Bengaluru, Mumbai and Pune have established themselves as life sciences hubs with ready-to-move-in infrastructure apt for co-locating both offices and labs, within cohesive biotech and industrial parks.
4. Government Support: Initiatives such as the Biotechnology Industry Research Assistance Council (BIRAC) and state-level biotech policies across states incentivize investments in biotech research.
5. Cost Advantage: Setting up and operating wet labs in India is significantly more cost-effective compared to Western countries, making it feasible to conduct high-quality research while optimizing operational expenses.

Benefits of Wet Lab Integration for GCCs

Integrating wet labs into Life Sciences Global Capability Centers (GCCs) in India represents a progressive step healthcare innovation. Unlike traditional tech-focused GCCs, wet labs enable companies to perform hands-on research and experimentation, bridging the gap between computational modeling and real-world application.

• End-to-End Innovation: Combining tech-focused GCC capabilities with wet lab operations enables companies to execute end-to-end research, from computational modelling to physical validation.
• Proximity to Clinical Trials: India’s diverse population offers an ideal environment for conducting large-scale clinical trials. Integrating wet labs into GCCs provides companies with the infrastructure to design and execute trials seamlessly.
• Collaborative Ecosystem: Companies can partner with Indian startups and academic institutions to co-develop advanced healthcare solutions, blending theoretical knowledge with practical experimentation.

• Boosting Competitive Advantage: A combined tech-and-wet-lab approach differentiates GCCs as strategic centers of excellence, not just operational or cost-saving hubs.
• Local and Global Impact: By leveraging India’s unique ecosystem, GCCs can cater to both global healthcare demands and local population needs, creating a larger footprint in the life sciences domain.

Spotlight on Key Life Sciences GCC expansions in India in 2024

Last year saw several multinational Life Sciences companies either establishing new GCCs or expanded existing ones, showcasing India's growing prominence in the sector:

• Illumina (Bengaluru): Expanded its facility to focus on DNA sequencing and advanced genomics. The company plans to hire over 300 technology professionals by the end of 2025.
• Medtronic (Hyderabad): Launched a Global IT Center within the Medtronic Engineering and Innovation Center (MEIC), with plans to grow its workforce by 300 over the next three to five years.

• Sanofi (Hyderabad): Expanded its GCC to employ 2,600 professionals by 2026, with a state-of-the-art facility covering 280,000 square feet.
• Zoetis (Hyderabad): Announced the expansion of its center, focusing on animal health and digital transformation.
• Carl Zeiss (Bengaluru): Launched its Global Capability Centre to enhance its digital transformation and research initiatives
• Amgen (Hyderabad): Established a new Technology and Innovation Center capable of hosting up to 3,000 professionals.
• Pfizer (Mumbai): Launched a Commercial Analytics Center, driving innovation in AI and data-driven healthcare solutions.
• Rx Benefits (Hyderabad): Opened its first GCC focusing on healthcare solutions and aiming to create 300 jobs.

Conclusion: Building the Future with Integrated GCCs

India’s unique combination of tech capabilities, skilled talent, and world-class infrastructure positions it as the ideal location for integrated Life Sciences GCCs. By expanding beyond technology and incorporating wet lab operations, companies can unlock new dimensions of innovation. This dual approach ensures that GCCs are not just cost-saving hubs but strategic centers driving global healthcare transformation.

As the global healthcare landscape evolves, India is poised to redefine the role of GCCs by enabling cutting-edge R&D and transformative solutions. For companies looking to lead the future of healthcare, the time to invest in integrated GCCs in India is now.

Source: ANSR Quarterly GCC Report, Q3 2024, December 2024.