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In 2016, global Healthcare GCCs and firms viewed India as their back office. Today, they’re racing to build innovation centers there. The reason? USD 638 Bn.
The Healthcare innovation race has a dark horse leader most aren’t watching closely enough. While Silicon Valley debates AI ethics, European firms navigate regulation. Meanwhile, India’s Healthcare GCCs have quietly evolved from back-office support to front-line innovation powerhouses. They are fundamentally reshaping global Healthcare delivery.
The timing couldn’t be more critical. Healthcare systems worldwide face unprecedented pressure – clinician burnout, unsustainable costs, and aging populations demand transformation, not incremental improvement. Traditional innovation models simply can’t keep pace.
Meanwhile, India’s Healthcare market is on a trajectory to expand from USD 110 Bn to USD 638 Bn by 2025. This represents not just growth, but a seismic shift in where Healthcare innovation happens and how it scales.
Our research reveals four interconnected catalysts that have transformed India’s Healthcare GCCs:
Talent as innovation fuel: With access to over 3 Mn tech professionals, these centers aren’t just handling processes. They’re redefining them. The evidence? Companies like Carelon have shifted 72% of their global workforce to India in just six years. Such a move would be unthinkable without genuine innovation capacity.
AI Adoption that actually scales: While many regions talk about AI potential, India’s Healthcare GCCs have increased AI/ML implementation from 65% to 86% since 2019. The difference lies in implementation at scale, not pilot purgatory.
Cross-domain innovation: By operating at the intersection of Healthcare delivery, technology, and finance, these centers are developing solutions that address the full spectrum of Healthcare challenges. This ranges from diagnostic accuracy to patient experience to cost efficiency.
Ecosystem integration: The most successful GCCs have abandoned the island approach. Instead, they build deliberate connections with startups, academic institutions, and government initiatives to create innovation multiplier effects.
Through investments in specialized infrastructure like Genome Valley and an 11% attrition rate, Telangana demonstrates what happens when talent, technology, and strategic focus converge. It has the lowest attrition rate among Tier-I cities.
Nowhere is this transformation more evident than in Telangana. With 11% of India’s total GCC population and 40% of the country’s Pharmaceutical production, Hyderabad isn’t just participating in Healthcare innovation. It’s creating the template for it.
Zinnov-AMCHAM’s latest report, “India’s Healthcare GCCs: Pioneering Global Innovation in Healthcare,” cuts through the complexity. It reveals how these centers are reshaping global Healthcare’s future.
Our Healthcare GCC Maturity Framework: Where does your organization stand?
As Healthcare pivots from reactive treatment to predictive intervention, the central question isn’t whether India’s GCCs will play a crucial role. Instead, it’s whether your organization will be among those leveraging this increasingly vital innovation ecosystem. Otherwise, you may find yourself playing catch-up in the years ahead.
A Global Capability Center (GCC), commonly referred to as a /Captive center/Global in-house Center (GIC), leverages global talent pool and cost efficiency of the regions they operate in. A GCC is offshore or nearshore entity fully owned and operated by a parent company. These centers provide a wide array of specialized services, ranging from information technology (IT) and research and development (R&D) to complex back-office functions. GCCs play a pivotal role in driving innovation, enhancing cost-efficiency, and accessing diverse global talent pools.
Healthcare GCCs streamline operational efficiency by simplifying billing, claims processing, and data management. They leverage technology integration through AI/ML, and cloud computing for better patient outcomes. These centers drive innovation by supporting R&D, digital health solutions, and medical device development, while ensuring regulatory compliance with data privacy standards like HIPAA and GDPR. Additionally, they focus on cost optimization through automation and process improvements, reducing operational expenses.
AI plays a critical role in transforming healthcare GCCs by enhancing clinical decision-making, improving patient outcomes, and optimizing operations. It supports predictive analytics for early disease detection, personalized treatment plans, and automated diagnostics. AI-driven systems streamline medical imaging, drug discovery, and remote patient monitoring, reducing diagnostic errors and improving care quality. Additionally, AI enables revenue cycle management, claims processing, and fraud detection, helping healthcare GCCs reduce costs and improve efficiency.
India is home to over 1,760 GCCs, bringing the total to more than 2,975 operational units globally. Due to its vast global talent pool, cost effectiveness, robust infrastructure and Government support, India has emerged as the GCC capital of the world. In FY 2024, India’s GCCs generated USD 64.6 billion in revenue. By 2030, India is expected to host around 2100-2200 GCCs, a workforce of 2.5-2.8 million and revenue reaching to $99-108 billion.
With concern to the Healthcare Industry, India has emerged as a Healthcare GCC powerhouse due to its access to global talent pool, digital capabilities, leveraging advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics. The work spans across various domains of healthcare, from improving patient care and streamlining operations to revolutionizing Drug Discovery and Medical Research. 100+ established Healthcare GCCs in India, employing 135,000 to 140,000 professionals till date since early 2000s, employing around 80,000 – 85,000 professionals across other Healthcare GCCs (Pharma, Medical devices, and Biotechnology companies)
Hyderabad, the capital of Telangana, is home to 11% of India’s total GCC population and accounts for 40% of the country’s pharmaceutical production. With it’s robust infrastructure, talent availability, the city ranks among the top 3 talent hubs in India, with a low attrition rate of 11%, the lowest among Tier-1 cities. Telangana is also ranked top in Ease of Doing Business, providing a favorable environment for global healthcare and pharmaceutical companies. Additionally, Hyderabad hosts premier institutions like ISB, IIT, BITS, IIIT, and NALSAR, ensuring a steady pipeline of skilled professionals for the industry.
Hyderabad and Bangalore host a significant portion of pharmaceutical R&D talent in digital engineering, while Mumbai has a high concentration of GCCs focused on clinical research. Hyderabad and Delhi NCR lead in healthcare talent for IT, GBS, and healthcare operations, followed by Chennai, which has the largest pool of Revenue Cycle Management (RCM) talent. Approximately 80% of India’s RCM talent is employed by IT/BPM service providers like AGS Health, R1 RCM, Infosys, Cognizant, and NTT Data.
Healthcare companies such as Agilon Health, Providence, Abbott, Medtronic, Cardinal Health, UnitedHealth Group, Carelon, Novartis and Medline have set up their GCCs in India, attracted by the country’s quality infrastructure, access to a skilled talent pool, and a thriving ecosystem. Hyderabad, in particular, has become an ideal location for digital transformation and innovation for these global companies.
Global RCM companies are aggressively setting up GCCs to scale operations, access specialized talent, and manage growing healthcare complexity. India plays a pivotal role, offering over 1 million skilled professionals and up to 40% cost savings. GCCs also serve as innovation hubs, embedding AI to improve coding accuracy, reduce denials, and enhance productivity. This shift enables RCM firms to boost margins, accelerate automation, and support global delivery with resilience.
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