They may have started out by processing routine tasks for global majors, but Indian pharma GCCs have now become a magnet for talent and investment as tech advances throw up new opportunities.India is already called the ‘pharmacy of the world’ for manufacturing quality and affordable medicines. To be counted as a drugs powerhouse, it has to now find a way to move up the value chain. Whatever the approach, if pharma GCCs, or global capability centres, located in the country appear vital to the journey, it’s because they’ve come a long way themselves.Over 55 healthcare & lifesciences (H&LS) GCCs are now present in India, operating over 95 centres spread across mainly Bengaluru, Hyderabad and Mumbai. Together, they represent millions of dollars in investment and lakhs of roles, including ones increasingly in research and drug development. Among those who’ve trooped in are as many as 23 of the world’s top 50 life sciences companies. While about half of these made their entry only over the last five years (according to a recent EY India report), it’s a story that begins almost a quarter century back.Growth Momentum2001. Just after the turn of the millennium, when India was basking in the success of its Y2K moment that heralded its arrival on the global IT stage, pharma giant Novartis planted the seed of what would become the next big offshoring story for India. The Swiss company put together a modest 20-member team in Mumbai to test the waters for building capabilities in data management, statistics and IT.Cut to 2025, and Novartis Corporate Centre (NCC) India is the largest pharma GCC in the country. In between came a move to Hyderabad in 2007-08 and investments of more than $400 million. NCC India now houses over 8,500 employees, including around 2,800 people in development across Hyderabad and Mumbai. Ganpat Anchaliya, head of NCC India, says “foresight and conviction” led them to act “well ahead of peers”. But it didn’t take very long for others to follow.As EY points out, what started as a trickle in the 2000s with pharma giants Novartis, Johnson & Johnson, and Novo Nordisk gathered pace in the mid-2010s as Eli Lilly, Merck KGaA and Bayer headed to Indian shores. Post Covid-19, this momentum has only accelerated, with pharma MNCs gearing up for a coming decade of uncertainty, high competition and increasing regulatory scrutiny.Why India?India, experts say, has become crucial for big pharma as the industry stares at a $236 billion patent cliff between 2025 and 2030, when nearly 70 blockbuster drugs go off patent.“India combines three strengths that are rare to find in one location — sheer scale that gives it global relevance, talent, and impact,” says John Dawber, corporate VP & MD of global business services at Danish giant Novo Nordisk.If India’s large pool of scientific, medical, and digital talent — more than 2.7 million professionals in life sciences and a strong pipeline of over 2 million STEM graduates annually — is virtually unmatched, it has also succeeded in leveraging other strengths.Anil Matai, director general of the Organisation of Pharmaceutical Producers of India (OPPI), says what makes India unique is its positioning at the convergence of world-class scientific talent, robust digital infrastructure and a thriving innovation mindset. “Earlier it was a generic copycat mindset but, now, the mindset is also changing and we see the scales tilting towards innovation. Also, for global clinical trials, we have a large patient pool as well,” says Matai, who was at the helm of Novartis India when its GCC moved to Hyderabad.Sairam Nair, lead, GCC, and country president, Sandoz India, sees the pharma GCC boom as the result of a unique blend of cost efficiency, deep domain expertise, mature operating environment, and a tech- and AI-native talent pool. But not all are convinced.Doubts And ConcernsSome feel that though GCCs have achieved much, especially in scaling talent, they are yet to do any fundamental innovation in India.“They (GCCs) are largely back offices for global innovators, who moved the routine work here first and now are adding more layers to it. But I still don’t think they’re doing fundamental innovation here. I look forward to the day when the core of innovation shifts here and they become innovation centres in drug discovery,” says G V Prasad, cochairman & managing director, Dr Reddy’s Labs.Shiv Kumar, HR head of Merck India, agrees that “from a drug discovery perspective, I think we have some way to go”, but his diagnosis of the problem is different. “Let’s be honest, I think IP (intellectual property) laws in India, while they are evolving, haven’t evolved to a point where there is a lot of confidence,” he feels.Matai of OPPI does not see it that way — he says a few GCCs have even begun investing in basic research in India — but acknowledges IP issues. “While IP protection has improved, some concerns remain about enforcement and regulatory data protection, which can affect willingness to invest in basic research.” India, Matai says, needs to build on innovation atop its strong foundation of generics, but much will depend on how much comfort Indian regulators are able to provide to MNCs. “If they provide comfort now, then, in the next five to 10 years, you will see significant investment.”However, Arindam Sen, partner and GCC sector lead, EY India, insists that the shift from cost arbitrage to capabilityarbitrage is real and irreversible. “This isn’t about cost arbitrage anymore, it’s about India becoming indispensable to the global R&D pipeline. Life sciences MNCs are embedding their most strategic, knowledge-intensive work here, making India the epicentre for life sciences innovation, compliance, and future growth.”Tech ForwardThe shift in approach is already visible in scale and scope with the next leap almost certain to be powered by artificial intelligence (AI).“Early pilots in Indian GCCs are already showing what’s possible: AI-based molecule triaging that saves up to nine months in discovery cycles, predictive safety systems in pharmacovigilance, and machine-learning models that optimise clinical trial design,” says pharma expert Sujesh Vasudevan, a senior adviser at BCG.“Novartis in Hyderabad is applying AI to anticipate drug safety outcomes, while AstraZeneca is deploying machine learning to identify novel cancer drug targets. Reports suggest that such models can reduce discovery costs by as much as 70% while cutting timelines by nearly in half. For global pharma, India’s GCCs now offer not just scale but speed, insight, and innovation,” he adds.The AI pivot is already at work. “Our hub in Hyderabad integrates cutting-edge tech like AI, machine learning, and software engineering to accelerate drug discovery, optimise clinical trial processes, and generate actionable market insights,” says Pranab Kakati, head of data solution implementation services, data science & AI, Bayer Pharmaceuticals Private Ltd. Nair of Sandoz GCC says they’re “exploring smarter, practical ways to integrate AI into operations to deliver impact that’s both meaningful and sustainable”.According to Bhanu Prakash Kalmath SJ, partner and healthcare industry leader, Grant Thornton Bharat, the infusion of AI, particularly in knowledge- and data-intensive processes, is expected to further deepen the transformation and enhance Indian GCCs’ role in global innovation.Are We There, Yet?Attesting to this, Anchaliya of Novartis says their over 8,500 associates anchored in Hyderabad are not only advancing scientific, digital insights, and tech frontiers but also shaping how the company operates globally.Matai of OPPI, which represents research-based global pharmaceutical MNCs in India, says “the shift has been dramatic in the last few years”.“While it was more about cost optimisation in the early days, the needle has moved significantly and, now, a lot of highend work is getting done here. Today, we have 16 member companies that have set up GCCs in India,” he says.Matai says that while “(Novartis) were the early ones to spot the opportunity”, EY India’s Sen sought to underline the sector’s rapid evolution. “In just five years, GCC penetration in enabling functions like finance, HR, supply chain, and IT has crossed the 60% mark, but what truly stands out is their deepening role in core functions — from drug discovery and regulatory affairs to medical and commercial operations,” he says.THE GCC TRIANGLE: MUMBAI, BENGALURU, HYDERABAD

THE GCC BRIGADENovartisIndia’s first GCC started with a 20-member team in Mumbai in 2001 and also set up in Hyderabad in 2007-08 with an investment of more than $400 million coming over the past two decades. India’s largest pharma GCC, it has over 8,500 employees.SanofiSet up in 2019, its GCC has grown to over 3,000 people in Hyderabad. Investments worth €400-million are lined up till 2030 for its GCC, which is driving high-value functions like drug discovery and digital health innovation. Mrinal Duggal, head, Sanofi Global Hub in Hyderabad, said “the Hyderabad hub has become integral to Sanofi’s mission”.Bristol Myers SquibbIt invested $100 million to open its innovation hub in Hyderabad in 2024 with over 1,500 employees. It’s focussing on applying AI to drug discovery, speeding up clinical trials and regulatory documentation through automation.Novo NordiskIts Bengaluru hub, conceived in 2007, has grown to around 4,500 professionals spanning 17 functions that support everything from early R&D to supply-chain planning. John Dawber, corporate VP & MD of its global business services, said the India hub is leveraging public-private partnerships and advances in AI and automation to enable Novo Nordisk “to accelerate innovation and deliver better outcomes globally”.Eli LillyStarted with around 65 employees in 2016 in Bengaluru and has grown to 3,500 people. It recently expanded to Hyderabad,where 1,500 roles are planned. The Bengaluru site plays a key role, among other things, in streamlining clinical trials and drug development. The Hyderabad site will leverage AI, automation, cloud computing, etc.Merck KGaAThe German giant started its India GCC journey with the acquisition of Sigma Aldrich in 2015. It has grown to three GCCs housing around 2,500 people in Bengaluru. Suneela Thatte, VP & head, healthcare R&D for India, said the “vision is to keep going up the value chain… to see how we get more technical and strategic roles to India”.PfizerIts global drug development centre in Chennai, embedded in IIT Madras Research Park, employs over 250 scientists to deliver advanced APIs, formulations, and devices to global markets.AstraZenecaHas steadily expanded from Chennai to a 166-crore global hub in Bengaluru, focused on AI-driven drug discovery and digital health.SandozThe generics giants, which was spun off from Novartis in late 2023, started with just 800 employees and has grown to over 1,000 people in Hyderabad.Bayer Pharma AGCame in over a decade ago, but has remained compact by extensively leveraging their partner ecosystem. Its Hyderabad facility is a critical hub for pharma R&D and clinical trial operations focused on advancing oncology and cardiology therapeutics.