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Rise of Healthcare Life-Sciences GCCs in India

India is a global hub for Healthcare and Life Sciences GCCs, driven by a skilled workforce, cost efficiency, and strong regulations. With 280,000 professionals across 100 centers, major firms leverage AI, ML, and blockchain for R&D and supply chains. Expansion into tier-2 cities and government support could push the market beyond $100B by 2030, transforming GCCs into strategic healthcare partners.

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Rise of Healthcare Life-Sciences GCCs in India

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  1. RISE OF HEALTHCARE LIFE SCIENCES GCCs IN INDIA

  2. What’s Inside 1. India – The Global GCC Capital 2. Key Capabilities of Healthcare Life Sciences GCCs in India 3. Key Trends in GCC Space 4. GCC – Real Estate and Talent Dynamics 5. GCCs in India – Way Forward

  3. Evolution of GCCs in India – GCCs have evolved from being a service provider to being a value provider Entry of GCC in India by entry of Texas Instrument Establishment of healthcare and life science GCCs Emphasis on digital transformation and innovation GCC market is projected to exceed $100 Bn by 2030 1900 – 2000 2000 – 2015 2015 – 2023 2023 - 2030 • Talent excellence • Well developed technology ecosystem • Proven success • Leadership prominence Key success factors • Technological ecosystem • Ability to scale • Cost advantage (Talent + Real estate) • Value creation • Knowledge process outsourcing • Core operations • Single-function provider • Transformation hub • Strategic business partners • Second headquarters • GCC monetisation • Business process outsourcing • Back-end support • Support function • Innovation led strategic services • R&D and innovation • Enhancing new capabilities GCC functions Sources: CBRE

  4. India accounts for over 50% of Global Capability Centers across industries GCC market is expected to cross $100 Bn - $110 Bn by 2030 driven by skilled workforce, expansion into tier-2 cities, favorable government policies, and improving infrastructure Major GCC sectors in India $100 Bn Retail and consumer Automotive Diversified – industrial Healthcare $46 Bn Semi- conductors Oil and gas 2023 2030 Sources: EY, Economictimes

  5. Global Leaders building India’s future in life sciences by establishing a strong presence ~2005 2024 From early 2000s, some of the world’s largest Healthcare & Life Sciences companies have set up GCC operations in India. They have made significant investments in building digital capabilities and accelerate innovation. Sources: ANSR

  6. ~100 healthcare life sciences GCCs are present in India catering to a workforce of more than 280K 95+ 280K+ 45+ 100K+ 20+ 40K+ GCC Workforce Split by Function in HC/LS* GCCs (2023) Core Healthcare and R&D ~43% BPM ~41% IT FY 2010 FY 2015 FY 2023 ~16% No. of HC/LS* GCC HC/LS* GCCs Talent Pool • Approximately 20% of Healthcare & Life Sciences GCCs have their centers in 3 or more cities in India • As of 2023, 95+ Healthcare & Life Sciences GCC units employed over 280K people in India • Core Healthcare & R&D, IT, and BPM functions constitute nearly 43%, 16%, and 41% of the total installed talent in Healthcare & Life Sciences GCCs, respectively • Top companies based on GCCs headcount in India – Novartis, Pfizer, Abbott, Siemens Healthineers, etc. • Nearly 75% of the total installed talent for Healthcare & Life Sciences GCCs comes from Bengaluru, Hyderabad, and Mumbai Sources: ANSR *Healthcare/Life Sciences

  7. Where are the healthcare and life science GCCs in India located Delhi: 15% Mumbai: 19% Mumbai: 19% Pune: 5% Pune: 5% Hyderabad: 20% Chennai: 6% Bengaluru 32% *Others: 3% (Kochi, Kolkata, Vizag, etc.) Sources: ANSR, Scribd

  8. Karnataka’s recent GCC policy and other states’ R&D and IT policies will further boost the GCC landscape in India Initiatives like streamlined tax regulations, flexible labor laws, and single-window clearance systems have simplified business processes for foreign companies setting up GCCs, supported by improved digital infrastructure Uttar Pradesh IT & ITeS policy 2022–27 Provisions like land subsidy, 50% of CoE setup cost, workforce incentive, IT park incentive, FSI Maharashtra IT & ITeS policy 2023–28 Provisions like mixed land use, rental subsidy, battery recycling, additional FSI Telangana ICT policy 2021–26 Provisions like land subsidies, IT park incentives, stamp duty, industrial power tariffs, workforce incentives, IP/patent Karnataka GCC Policy 2024-29 Provisions like targeted financial incentives such as rent coverage, tax breaks and reimbursements Tamil Nadu Research and Development Policy Provisions like special capital subsidies, innovation lab incentives, and subsidies for software licenses and product testing and prototyping facilities Sources: Deccanherald, PWC

  9. Empowering Healthcare & Life Sciences: The Role of GCCs in Innovation GCCs LEADING INNOVATION THROUGH USE OF CUTTING EDGE TECHNOLOGIES SPEARHEADING R&D AND CLINICAL TRIALS FOR DRUG DEVELOPMENT DRIVING KEY BUSINESS FUNCTIONS • The healthcare and life sciences industry is embracing digital technologies for research, development, and commercialization. • Life sciences companies are continually innovating in drug development and research. GCCs in India collaborate on drug discovery projects, offer computational chemistry and bioinformatics support, and accelerate research through high-performance computing. • The COVID-19 pandemic highlighted the importance of resilient supply chains. GCCs are enhancing supply chain management, optimizing inventory, and improving demand forecasting to ensure consistent drug availability. • GCCs in India are at the forefront of implementing digital solutions, including data analytics, AI, and machine learning, to accelerate drug discovery, clinical trials, and supply chain optimization. • GCCs drive the efficiency and success of clinical trials by offering expertise in data management, patient recruitment, and regulatory compliance. Their collaboration with HQ and use of advanced technologies are key to advancing the clinical trial process. • Global healthcare and life sciences companies also rely on their GCCs in India for critical services such as Finance & Accounting, and Human Resources, streamlining operations and ensuring compliance. Sources: ANSR, Zinnov

  10. GCCs in India are leading next-gen technology adoption in Healthcare & Life Sciences sector Big Data & Analytics Growing Emerging low adoption Matured well integrated rapid integration & adoption Accelerate Drug Discovery and Development • Analytics predicts data and makes it simpler to drive intelligent decisions for accelerating the process of drug discovery High High Big Data & Analytics Big Data & Analytics Increase the Efficacy of Clinical Trials • Big data analytics help reduce the cost & speed up the clinical trials by identifying and analyzing various data points Adoption in Healthcare & Life Adoption in Healthcare & Life RPA/Automation RPA/Automation Sciences Industry Globally Sciences Industry Globally AI/ML AI/ML RPA/Automation Cybersecurity Cybersecurity Cloud Cloud Clinical Trials Management • RPA enables high-volume tasks related to clinical trials that generate and utilize enormous amounts of data can be efficiently and conveniently performed by intelligent robots Healthcare IT Healthcare IT Medium Medium Patient Matching • Finding patients for trials is a bottleneck in clinical research. Finding the best candidates for a life science study by leveraging RPA makes the process faster & easier. Experience Technology Experience Technology Hybrid Cloud Hybrid Cloud Blockchain Blockchain IoT IoT Cloud Scalable Cloud Capacity enhancing Clinical Trials Management • Conducting clinical trials simulations on premise system is difficult as it is challenging to scale the computational power necessary to run trial simulations on-site, by leveraging cloud drugs companies have turned efficient Web3 Web3 Low Low Wearables/ Wearables/ AR/VR AR/VR Low Low Medium Medium High High Sources: ANSR

  11. Penetration of Tech & Digital Services across HC/LS GCCs in India Healthcare & IT Electronic Health Records (EHRs), Picture Archiving and Communication Systems (PACS), Interoperability Standards Big Data & Analytics BI, Data Management, Data Visualization, Data Warehousing, Data Engineering 85% 60% IT Infrastructure & Cloud Hosting & Network Services, Services Management, Infrastructure Modernization AI/ML Medical Imaging Analysis, Clinical Trial Optimization, Chatbots, Drug Discovery, Personalized Medicine 85% 60% RPA/ Automation Change management, Implementing Digital Transformation Internet of Things Connect / Wearable Device Management 80% 15% Cybersecurity Cyber Security Engineering, Threat Hunting, Incident Reporting Blockchain Medical Records, Drug Development, Counterfeit Drug Prevention 80% 10% Note - The percentages represent the penetration in # of GCCs in India Sources: ANSR

  12. GCCs in India are playing pivotal role in Drug Discovery & Development process Drug Development Life Cycle / Stages Surveillance FDA Review In-Vitro and In-Vivo Testing Human Testing Discovery & Development Preclinical Research* Clinical Research Data Review Post-Market Monitoring 1 2 3 4 5 • Analytical development, stability studies, formulation development • Clinical data management • Creating data review plan • Pharmacovigilance and risk management planning • Clinical document writing (involves reporting data from clinical trials) • Centralized monitoring / review of aggregated clinical, quality, and performance data • Maintenance of pharmacovigilance system • Safety reporting (e.g., provide reports to be used during audits & inspections) • Protein engineering • Medical communication for clinical trials (includes journal submission; educational material for patients, healthcare professionals; product website content) • Medicinal and process chemistry, biologics, bioprocess, drug metabolism, pharmacokinetics, bioanalytical research, and pharmaceutical development • Medical review of regulatory reports and renewal documentation submitted to regulatory agencies • Maintenance of global submissions • Clinical regulatory writing (involves preparing regulatory submission documents) • Biostatistics & programming (involves calculating efficient sample size & statistical methods to interpret clinical data) • Research on APIs, OSDs, biologics, injectables • Clinical data science • Regulatory compliance including new product submissions *Preclinical research is the initial phase of testing for new drugs or medical treatments before human clinical trials. It includes laboratory and animal studies; It is retained in HQ. Sources: ANSR

  13. Work portfolio mapping of GCCs for Drug Discovery & Development functions Scatter plot showing service matrix across function’s strategic nature & business value Average distribution of talent pool by work portfolio across GCCs in India Medicinal & Process Chemistry Pharma Dev. Bioanalytical Research High Formulation Dev. Protein Engineering Drug Stability Studies Bioprocess Pharmacovigilance Safety Reporting 18% Data Review Regulatory Compliance 22% Drug Metabolism & Pharmacokinetics Clinical Data Science Post-Market Review Business Value* Clinical Data Mgmt. Biostatistics and Programming 15% Drug Clinical Document Writing Data Review 40% Clinical Research Discovery & Development Clinical Regulatory Writing Low Total Estimated talent pool, Drug Discovery & Development across GCCs in India: ~25-30K Business Nature of Process Strategic Transactional Sources: ANSR *Contribution towards Efficient Drug Development, Revenue Growth & Profitability

  14. Penetration of core clinical business across GCCs 45% 45% 60% 50% Drug Discovery & Development Data Review Clinical Research Post-Market Monitoring Biologics, Bioprocess, Drug Metabolism, Pharmacokinetics, Bioanalytical Research, Pharmaceutical Development Clinical Quality & Performance Data Review, Clinical Regulatory Writing Clinical Data Science, Clinical Data Mgmt., Biostatistics & Programming, Clinical Document Writing, Regulatory Compliance Pharmacovigilance & Risk Management Planning, Safety Reporting Note - The percentages represent the penetration of the function in # of GCCs in India Sources: ANSR

  15. GCCs driving key business functions GCCs in India manage various business functions to support the global operations 55% 60% 60% 80% Community Relations Human Resources Supply Chain Management Marketing • P2P & O2C: Manages supplier payments and accounts receivable, ensuring efficient cash flow • HR Shared Services: Centralizes payroll, benefits, and onboarding for global consistency. • Planning & Procurement: Manages demand forecasting and supplier contracts to ensure timely material availability. • Strategy & Branding: Develops global marketing plans, ensuring brand consistency across markets. • R2R & FP&A: Handles financial reporting, budgeting, and forecasting for decision-making and compliance • HR Analytics: Uses data to improve performance tracking, workforce planning, and retention. • Logistics & Manufacturing: Oversees global logistics and production to meet regulatory and delivery requirements. • Digital Marketing & Research: Executes digital campaigns and gathers market insights for regional strategies. Note - The percentages represent the penetration of the function in # of GCCs in India Sources: ANSR

  16. Trends Redefining GCCs in 2024 / 2025 GCC emerging as proof-of-concept hubs for GenAI applications GCCs evolve to become digital twins of their HQs GCCs to become hotbeds for new & disruptive technology Increased collaboration of GCCs with startups for corporate innovation GCCs are a part of strategic conversations among real estate stakeholders Sources: Scribd

  17. 1. GCC emerging as proof-of-concept (PoC) hubs for GenAI applications India's GCCs are becoming dynamic hubs for experimenting with and developing GenAI applications, acting as sandboxes for testing PoCs and accelerating digital transformation, positioning Indian centers as global leaders in GenAI innovation Over $60 Bn is expected to be invested in AI and its integration in the coming 3 years 90% of GCCs aim to adopt AI/ML/cognitive technologies within the next 2-3 years • Siemens is experimenting with GenAI through initiatives like Healthineers GPT to automate documentation tasks and improving operational efficiencies within quality and regulatory processes • This approach is aimed at streamlining workflows and empowering teams for higher-value activities • Thryve Digital Health has launched an ambitious "AI at Scale" initiative, to integrate GenAI across its operations and enhance collaboration among its global workforce • This proprietary GenAI platform is designed to democratize AI usage within the organization, enabling all employees to engage in development, maintenance, and innovation activities. Sources: Scribd, Economictimes, Fortuneindia, Business

  18. 2. GCCs evolve to become digital twins of their HQs GCCs in India are evolving into digital twins of companies' global headquarters, mirroring their digital footprint and operations while enabling real-time collaboration to enhance efficiency and innovation. Indian GCCs are expected to host over 60 CIOs and sr. vice presidents by the end of 2024 4 in 10 of enterprise technology & back- office operations leaders are placed at GCCs 40% of the corporate headcount operates from GCCs • Optum India has evolved into a strategic powerhouse within its global operations, functioning as a digital twin of its headquarters • This transformation reflects a strong alignment in culture, values, and business objectives, enabling collaborative efforts across geographies to create innovative healthcare solutions • Lilly Capability Center India (LCCI) has become integral to global operations by offering clinical trials, technology, commercial, and core services while aligning with the company's cultural values • LCCI accelerates the development and delivery of innovative medicines by collaborating with Lilly teams across geographies and functions Sources: Scribd, economictimes, Ibef, Techcircle, Communicationstoday, Praxis

  19. 3. GCCs to become hotbeds for new & disruptive technology GCCs in India have transformed into strategic hubs that drive critical business goals by leveraging advanced technologies such as GenAI, machine learning, data analytics, augmented reality, and robotic process automation 80% of Indian GCCs are prioritizing digital advancements such as AI, ML, and data analytics 55% of technology products are developed in the GCCs • AstraZeneca's GITC in Chennai drives the company's digital journey, hosting over 50% of its global IT staff. It delivers many key IT programs and helps in scaling strategic future platforms and capabilities • It offers a wide range of capabilities and services, including software engineering, cybersecurity, cloud, hyper automation, AI, ML, extended reality, and IoT • Roche is harnessing India’s rich engineering talent and robust technology ecosystem to forge ahead in the digital landscape, crafting innovative solutions that resonate on a global scale • It adds expertise around the technological advancements happening in the healthcare space through the utilization of AI/ML concepts contributing towards significant improvement in the lives of patients Sources: Scribd, OPPI India, BioSpectrum India, Indiaoppi

  20. 4. Increased collaboration of GCCs with startups for corporate innovation Collaboration between GCCs and startups in India is reshaping corporate innovation by combining startup agility with corporate resources, driving rapid growth and technological advancements across sectors India is 3rd largest startup ecosystem in the world 1,12,718 DPIIT- recognized startups as of FY2023 31,000 active tech startups in India • Pfizer partnered with NIPER Ahmedabad to support startups and early-stage innovators in India's healthcare sector • This partnership aims to support startups in transforming their innovative ideas into market-ready solutions, focusing on pharmaceutical advancements • Novartis launched Biome India, a digital innovation hub in Hyderabad to collaborate with Indian HCLS startups to drive innovation and accelerate the development of cutting-edge solutions • This collaboration aims to drive digital healthcare innovation through data and digital technologies Sources: Scribd, Assets, Ableindia, Theweek

  21. 5. GCCs are a part of strategic conversations among real estate stakeholders GCCs in India are growing rapidly, becoming a key topic among real estate stakeholders, with 67% of GCCs planning to expand their office space by at least 10% in the next two years GCCs in India are expected to lease approx. 60 Mn sq ft of office space in 2023-2025 across the top 6 cities in India GCCs in India account for 1/5th of gross leasing volume • Leased 400,00 sq ft of area to expand its campus in Hyderabad, after the inauguration of the HCA incubation facility • This is driven by a talented workforce, cost-effectiveness, and a favorable business environment • Chennai facility occupies 3,34,000 sq ft office space and plans to add approx. 180,000 sq ft by the end of 2024 making it AstraZeneca’s biggest GCC • This plan to include an investment of $30 Mn with 1,300 job roles Sources: ANSR, Scribd, Thehindu, Telangana, Financialexpress

  22. India's Strategic Imperative: Talent and Real Estate in GCCs In the contemporary global landscape, human capital and real estate stand as the foundational pillars of GCC prosperity. By cultivating an environment that allures and retains exceptional talent through avant-garde workspaces, GCCs forge a formidable competitive edge. Talent Stacking Real Estate Dynamics Optimized Performance 880+ million sq. ft. Grade A real estate office stock in top nine cities of India GCCs are revolutionizing their approach by recognizing these assets as strategic investments rather than mere expenditures. Modern, employee- centric workspaces not only enhance performance but also catalyze innovation. By offering state-of- the-art real estate with a global outlook, GCCs can attract a diverse, skilled workforce. ~1.66 million Currently installed talent in GCCs in India 5.4 million GCCs are heavily reliant on this large tech talent workforce available in India Rentals in top Indian cities are about 50% lower than competing Asian markets ~190,000 graduates Across Science, Technology, Engineering and Mathematics, India’s top six cities provide ample scope for GCCs to expand Rentals in top Indian cities are about 60% lower than cities in Eastern Europe Cost Effectiveness GCCs are positioning themselves as cost- competitive alternatives to established hubs. By synergizing a robust talent pool with strategically envisioned real estate spaces that stimulate collaboration and productivity, they can redefine the business landscape. The average salary of a software professional in India is 1/10ᵗʰ to the talent cost in the US for a similar role, making a GCC set up in India much more cost competitve USD 14 billion Investment flow between 2019-H1 and 2024 in the office sector, resulting from attractive returns Sources: CBRE

  23. GCC Leasing on a Solid Footing Talent acquisition has been a paramount factor in GCC expansion strategies. Our survey reveals that approximately 67% of GCCs intend to increase their office portfolios by at least 10% within the next two years. This growth trajectory is anticipated to be concentrated in India's top six metropolitan areas, driven by their exceptional talent pools, enabling expansion & future development. Delhi-NCR Gurgaon - NH-8 (Before Rajiv Chowk) 21% ~53 million sq. ft. of space leased by GCCs between 2022 - H1 2024 Mumbai 4% Western Suburbs 2 Pune 21% Hyderabad IT Corridor II 12% SBD - Kharadi Bengaluru Outer Ring Road 40% 14% Chennai OMR Zone I 2022 - H1 2024 City GCC leasing share as a proportion of Pan-India GCC leasing Top micro-market during 2022 - H1 2024 Sources: CBRE

  24. GCC Leasing is on a rising note in the Healthcare Life Sciences sector Global corporations are affirming their long-term commitment to India by securing larger office spaces for their GCCs. GCCs in India are likely to lease office space of around 60-62 million sq. ft. between 2023-25 GCCs are expected to contribute the highest share of 35 – 40% to total leasing, in the July-September quarter of 2024 • The expansionary trend, indicative of anticipated growth, emphasizes scalability. Leasing Split by Sector • Life sciences GCCs have exhibited an increased appetite for expansion in the country, driven by the need to digitalize services and foster product development. • 85% of Healthcare & Life Science GCCs are established in Delhi-NCR, Bengaluru, Hyderabad and Mumbai. 15.0% 8.0% 8.5% • As Healthcare & Life sciences GCCs continue to adopt cutting-edge technologies and expand their capabilities, they will play an increasingly vital role in shaping the future of global healthcare. Life sciences Others Propelled by medical advancements, enhanced care quality, and evolving compliance and regulatory frameworks, global life sciences firms are expanding their Indian GCC footprints. Sources: CBRE

  25. Evaluation of Talent Spread across Healthcare / Life Sciences Sector Healthark analyzed a set of key life sciences GCC firms in India, to understand the spread of installed talent across key functions/domains in the organization. The seven key functions/domains across the life sciences organizations include: Engineering + Information Technology, Business Development + Sales, Finance, Operations, Human Resources, Support & Marketing. Engineering + Information Technology Business Development + Sales Life HR Support Marketing Operations Finance Sciences High Low Concentration of the talent across the functions As per the analysis of the workforce composition in top life sciences GCCs, engineering + information technology has emerged as the top function, comprising largest share of workforce There is a digital transformation across the life sciences GCCs which are extensively investing in artificial intelligence, machine learning, blockchain, and big data analytics. Over 15% of all GCC employees in India work in the healthcare and life sciences sector. Sources: CBRE, Inductus

  26. Navigating the Skill Shift in GCCs Key GCC Talent Management tenets include: The evolution of GCCs from operational back offices to technology and innovation hubs necessitates a profound transformation in workforce skills. Historically, GCC skill sets were centred on operational support and routine task efficiency. However, the pivot towards technology and innovation demands a broader, specialized technical skill set. A surge in demand for digital and machine learning proficiencies, including artificial intelligence (AI), applied machine learning, data analytics, cybersecurity, blockchain, augmented reality app design, engineering, and UI/UX design, is evident. ▪ Identifying New- skills Talent Developing Leadership & Global Roles Reskilling the workforce ▪ ▪ As GCCs prioritize operational resilience, the demand for emerging tech talent intensifies. Establishing a framework to cultivate a talent pipeline with these niche skills is imperative. Nurturing senior talent across domains would be another critical GCC focus. Targeted upskilling investments can significantly enhance GCC capabilities, aligning them with evolving business and technological landscapes. ▪ Focus Areas A strategic, multifaceted upskilling approach is essential to cultivate a future- ready workforce. Strategic Investment Leadership Development Experiential Learning Personalized Learning Measurement & Evaluation “By cultivating a highly skilled workforce and adopting innovative learning methods, GCCs In India can establish themselves as Global Centres of Excellence. This transformation is crucial to ensure their continued success in a dynamic market landscape” Sources: CBRE

  27. Looking Ahead - Driving the Next Wave of Globalization The GCC model is poised for a transformative evolution over the next few years, elevating India's role to a global innovation hub and leadership epicentre. As GCCs mature and new centres emerge with unprecedented sophistication, GCCs in India are destined to evolve into headquarters partners, or even independent headquarters. Major GCC firms are looking to increase their workforce across the country. This ambitious vision for 2030 is not merely aspirational but a tangible possibility through strategic execution. A burgeoning array of industries is recognizing the potential of Indian talent, establishing their GCC footprint. . Across industry sectors, GCCs in India have over 200,000 open job positions across various skill sets. The future promises further diversification as the life sciences, automobiles, and aerospace sectors expand their GCC presence in India. Major sectors looking to hire include tech, BFSI, E&M, RCA and Life sciences. These requirements span across fundamental skillsets mentioned earlier, in addition to new technologies such as AI-ML, Cloud Computing, Auto Engineering, and Financial Analytics among others With a strategic roadmap for 2024 GCC development, the country is poised to spearhead the next wave of globalization. By leveraging AI, cultivating strong leadership, and fostering collaborative ecosystems, GCCs in India can deliver unparalleled value to global businesses. Sources: CBRE

  28. India's Economic Resilience and GCC Growth The Indian economy has been resilient in the wake of global economic challenges and is likely to emerge as the third- largest economy in the world by 2027. India’s maturing start-up industry, which has a symbiotic relationship with GCCs, is also expected to see greater collaborations, fueling the growth of these global centres’ innovation ecosystem. Opportunities for sustainable growth of GCCs in India • India's GCCs contribute significantly to the national economy, accounting for over 1% of GDP, with this figure poised for further growth. Providing Regulatory Support Bridging the Talent Gap Top countries in engineering talent Building a strong regulatory framework for aspects such as transfer pricing of high-value services and Intellectual Property (IP) creation mechanisms could smoothen GCCs’ operational aspects. India boasts a substantial engineering talent pool, enabling firms to expand across diverse roles. The emergence of AI and ML as pivotal technologies underscores the imperative for robust talent reskilling. India's AI-ML talent pool lags approximately 44% behind the US, presenting a significant upskilling opportunity. • Streamlined regulations, flexible labour laws, and efficient approval processes have fostered a conducive business environment. India 3.3 Mn 446,000 AI/ML Software Engineering Talent Engineering Talent • Collectively, these GCCs generated USD 46 billion in revenue during 2023, constituting approximately 1% of India's GDP. China 3.4 Mn 400,000 Enhancing Technology Ecosystem Thrust on R&D AI/ML Software Engineering Talent Engineering Talent Promoting innovation through incentivizing start-ups, enhancing funding opportunities for technologies, nurturing incubation centres, and higher digital inclusion would foster a more vibrant technology ecosystem in the country While the government has boosted start-ups through its ‘Start-up India’ mission, deeper partnerships with R&D institutes and universities, can aid in skill development. Increasing R&D spends would likely bolster innovation in the country, strengthening the GCCs. • The recent corporate tax reduction to 35% for foreign companies, as announced in the July 2024 budget, is expected to further attract global players. US 1.6 Mn 786,000 AI/ML Software Engineering Talent Engineering Talent Sources: CBRE

  29. Healthark Outlook The Indian economy has been resilient in the wake of global economic challenges and is likely to emerge as the third- largest economy in the world by 2027. India’s maturing start-up industry, which has a symbiotic relationship with GCCs, is also expected to see greater collaborations, fueling the growth of these global centres’ innovation ecosystem. India remains a cornerstone for GCC expansion, driven by its economic resilience and a burgeoning startup ecosystem. The country’s vast talent pool, coupled with its cost advantages, solidifies its appeal. GCCs’ upsurge in India to bolster India’s commercial real estate Availability & Cost of quality real estate Availability of fresh and experience d talent The market is witnessing a dual trend: expansion of existing firms into multifunctional centers and entry of smaller players seeking digital and technological upgrades. Supportive regulatory framework Cost of talent The popularity of hybrid work continues, but companies still want bigger offices to encourage teamwork and creativity. They're looking for high- quality, tech-savvy workspaces, and many big companies are building large campuses. GCCs are poised to significantly augment their Indian footprint, demanding both conventional and flexible office spaces. A robust pipeline of premium office spaces is expected to cater to this growing demand from GCCs 30 – 35 million sq. ft. GCCs Leasing H2 2024 - 2025F Sources: CBRE

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