Expanding Horizons-The Maturity Journey of Life Sciences and Healthcare GCCs in India

1. Expanding Horizons The Maturity Journey of Life Sciences & Healthcare GCCs in India February 2025

2. “The difficult we can do immediately; the impossible will take a little longer.” - James M. McPherson

3. TABLE OF CONTENTS India’s Expanding Role in Lifesciences Healthcare (LSHC) GCCs 1 4 Current Functional Capabilities of Indian LSHC GCCs 2 11 3 28 Maturity Journey of LSHC GCCs in India Navigating Ecosystem Complexities & Way Forward 4 32 EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 3

4. 1. India’s Expanding Role in Lifesciences Healthcare (LSHC) GCCs

5. 1.1 EVOLUTION OF LSHC GCCs IN INDIA The Life Sciences and Healthcare (LSHC) sector is a key contributor to India’s Global Capability Center (GCC) ecosystem, with around 100 GCCs employing over 300,000 professionals. Once primarily focused on service delivery, these centers have now evolved into innovation powerhouses shaping the commercial success of life sciences products worldwide. This shift is driven by India’s deep scientific talent pool, cost advantages, and robust digital infrastructure, positioning the country as an ideal hub for global life sciences and healthcare organizations. As companies strive to optimize operations, accelerate innovation, and navigate complex regulatory landscapes, India’s LSHC GCCs are emerging as centers of excellence— driving global decision-making and pioneering next-generation healthcare solutions. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 5

6. 1.1 EVOLUTION OF LSHC GCCs IN INDIA 100+ 70+ 45+ 20+ 5+ 2005 2010 2015 2020 Present Captive BPO & early R&D support Transition to core R&D capabilities Segue into drug development & leverage matured tech talent Enhancing digital transformation & business functions maturity Mirroring the parent organization GCCs initially functioned as in-house service providers, focusing on IT activities & transactional back-office operations such as Finance & Human Resources with select centers supporting basic research activities Driving operational excellence & maximizing cost efficiencies were key drivers for these set-ups The focus evolved from providing R&D support to developing core R&D capabilities, with companies aligning research initiatives to their specific therapeutic areas This transformation led to the transition of specialized activities such as regulatory submissions, early-stage clinical trials, & molecule screening GCCs moved up the value chain by contributing to the drug development process. GCCs started delivering activities within drug discovery, clinical research, pharmacovigilan ce & regulatory affairs Matured technology ecosystem enabled transition of high-value IT activities to Indian centers further enhancing their strategic role GCCs played a pivotal role in driving the organization's digital transformation agenda by leveraging both open & closed innovation programs Emergence of Centers of Excellence (CoEs) within GCCs, such as FP&A, Commercial, & Talent Acquisition, started enhancing business impact & strategic value Today, GCCs operate as an extension of the enterprise, with high-value activities such as new product development & global drug development becoming core capabilities These centers have evolved into strategic partners for headquarters, playing a crucial role in navigating business challenges & driving innovation EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 6

7. 1.2 GEOGRAPHICAL DISTRIBUTION OF CURRENT LSHC GCCs 15% Delhi-NCR 19% Mumbai 5% Pune 20% Hyderabad 32% Bengaluru 6% Chennai *Others: 3% (Kochi, Kolkata, Vizag, etc.) With 85% of Life Sciences Healthcare GCCs - Bengaluru, Hyderabad, Mumbai & Delhi-NCR are the key hubs driving India’s Leadership EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 7

8. KEY CITIES HOSTING >95% OF LSHC GCCs IN INDIA Hyderabad, with its fine mix of top-quality engineering & medical talent, has evolved as a key pharma GCC hub, shaping the future of medical innovation. R&D hubs such as Genome Valley & the Medical Devices Park have further accelerated drug discovery & med-tech innovation Hyderabad Known as the Silicon Valley of India, Bengaluru boasts a thriving tech ecosystem that drives AI-driven healthcare innovations. With global firms setting up digital capability centers, GCCs in the city spearhead AI, cloud, & analytics-driven solutions to enhance patient care, streamline workflows, & enable predictive diagnostics Bengaluru GCCs in Delhi-NCR support their parent organizations in regulatory affairs, healthcare consulting, & advanced analytics. Many have established Centers of Excellence within business & corporate functions to drive greater value Delhi - NCR Chennai has evolved as a hub for technology & healthcare BPM services, offering lower costs, a skilled talent pool, & the country's lowest attrition rates. Its robust IT infrastructure & expertise in large-scale healthcare platform implementations enable GCCs to drive cost-efficient automation & data- driven healthcare operations Chennai With a strong academic & research foundation, these cities are key to analytics-driven clinical trials & commercial healthcare operations. Institutions like the National Chemical Laboratory & IISER Pune provide top- tier talent, while global firms harness advanced analytics for clinical data management, real-world evidence generation, & market access strategies Mumbai & Pune TIER 2 CITIES: EMERGING PROSPECTS FOR HEALTHCARE GCCs Tier-2 cities like Ahmedabad, Kochi, Vizag, Vadodara, & Bhubaneswar are emerging as attractive expansion hubs for global healthcare & life sciences companies, offering scalable talent, lower costs, & improving business ecosystems. With their growing GCC presence, these cities are projected to see a 15-20% expansion by 2025 & 25-30% in the following years EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 8

9. INDIA’S VALUE PROPOSITION AS A GLOBAL HUB FOR LSHC GCCs 1.3 01 02 Skilled Talent Pool Innovation & Digital Transformation India’s vast talent pool, with 3.3 million software engineers and 0.5 AI/ML specialists, establishes the country as a leader in AI-driven life sciences R&D India is at the forefront of digital transformation, with advancements in AI/ML, NLP, Data Science, Analytics, and GenAI, all crucial for pharma innovation and helping HQs reimagine their business processes Each year, 1.5 million STEM graduates enter the workforce, including professionals in life sciences, pharmacy, and biotechnology The country boasts 500+ universities and 40,000+ colleges offering specialized courses in life sciences and healthcare 03 04 Supportive Government Policies & Thriving Ecosystem World Class Infrastructure Central and state government policies, such as tax rebates, subsidies, grants, special incentives, state-sponsored skill development programs, and simplified regulations, create an ideal environment for GCC setups and expansion The presence of world-class biotech and pharma clusters across Hyderabad (Genome Valley, Medical Device Park, Pharma Villages, Bangalore (Bioinnovation Centre), Chennai (TICEL Bio Park), and Pune (TCG International Park) is accelerating the growth of GCCs India’s 10,000+ healthcare startups offer GCCs access to innovative, cost-effective solutions EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 0 9

10. INDIA’S VALUE PROPOSITION AS A GLOBAL HUB FOR LSHC GCCs 1.3 05 06 Cost Efficiency Scalability / Expansion Options 40%-50% cost savings achieved by establishing GCCs in India compared to home countries, driven by lower operational costs, including real estate, utilities, infrastructure, and employee salaries Large talent base, matured ecosystem (startups, educational institutes), and supporting government policies (tax support, grants, financial assistance) enable GCCs to scale and expand according to their organizational needs and business plans EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 0

11. 2. Current Functional Capabilities of Indian LSHC GCCs

12. CURRENT FUNCTIONAL CAPABILITIES OF INDIAN LSHC GCCs 2. Drug Development Tech & Digital Innovation Business Operations Corporate Functions 2.1 DRUG DEVELOPMENT 2.1.1 CORE R&D FUNCTIONS Early-stage tasks like Target Identification & Hit-to-Lead Optimization are gradually being explored, driven by increasing R&D investments, expanding biotech ecosystem Computational drug discovery has emerged as a mature service due to the abundant availability of computational chemistry & bioinformatics talent Target Hit Identification & Validation Identification Assay Drug Discovery Hit-to-Lead Optimization Development & Validation Computational Drug Discovery Preclinical stage activities are retained onshore due to stringent regulatory compliance, data security, quality control, access to advanced research facilities Pharmacology Study/ADMET Profiling Toxicology Studies Preclinical Stage Drug In-Vitro/In-Vivo Studies Formulation Dev. Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 2

13. High-volume tasks such as trial execution, data management, & patient recruitment are offshored for their cost efficiency, access to large sample pools, & the presence of an established CRO ecosystem Site & Clinical Trial Planning & Design Investigator Mgmt. Patient Clinical Development Clinical Trial Execution Recruitment & Retention Data Mgmt. & Monitoring & Analytics The offshorability of pharmacovigilance is high due to India-based teams' ability to efficiently manage large volumes of adverse event reports & their expertise in preparing regulatory dossiers Adverse Event Monitoring Signal Detection Pharmacovigilance Risk Mgmt. Planning Periodic Safety Updates Regulatory Strategy Dev. Preclinical Reg. Support Teams based in GCCs have expertise in handling regulatory submissions for multiple global markets, ensuring compliance with different International standards Clinical Reg Support Regulatory Submissions Regulatory Affairs Regulatory Comp during Manufacturing Labeling & Artwork Review Regulatory Intel & Policy Advocacy Lifecycle Mgmt. Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 3

14. 2.1.2 SUPPORT R&D FUNCTIONS Patent preparation, filing, & litigation being strategic in nature are not actively handled by GCCs. However, licensing & IP management are typically offshored in a limited capacity, mainly for administrative & support tasks Patent Preparation & Filing IP Mgmt. Intellectual Property (IP) Litigation Licensing RWE is a mature process within GCCs due to the availability of a large pool of highly skilled professionals in data science, biostatistics, & epidemiology, which are essential for high-quality RWE analysis Post Marketing Surveillance (PMS) Real world Evidence Medical Affairs Scientific & Commercial Writing Offshorability of PMS is high for signal detection & adverse event reporting, leveraging high-volume data processing capabilities at reduced costs Scientific & Commercial Writing offshored to India for routine content creation, focusing on high-volume tasks, with complex activities retained at home office Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. SUCCESS STORIES GCC is revolutionizing drug development with AI-driven molecular design, accelerating discovery across 70% of small molecule projects Leverages AI-powered image analysis & advanced imaging tools for analyzing the heterogeneity of the patient population & develops potential medicines faster Data science specialists are developing machine learning models to merge clinical trial & real-world data, aiming to uncover patterns in disease progression & patient responses to treatments GCC handles PMS surveillance, signal management, safety reporting, license renewals, annual reports, variations, patient risk management strategies, & PASS & ESR studies, supporting over 50 AstraZeneca brands EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 4

15. SUCCESS STORIES Ferring Hyderabad Product Development Centre (FHPDC) is a global R&D hub offering end-to-end pharmaceutical product development, innovative packaging solutions, clinical and non-clinical development, and regulatory submissions This center focuses on Ferring’s Key Therapy Areas - Reproductive Medicine & Maternal Health, Uro-Oncology and Gastroenterology 1,400+ FTEs across R&D includes safety science, regulatory, biostatistics, clinical operations, project portfolio management, publications, clinical trial transparency etc. Activities such as data management, medical writing, study delivery of assets, system validation, quality control framework and laboratory management support within the Clinical Operations area are carried out by the teams at the Bengaluru center Biostatistics team is involved in drug development across all phases and providing data-driven insights including evidence generation from Real World Data The regulatory affairs team handles key deliverables for both new and established products, including submission dossiers, clinical trial applications, labeling, license maintenance, lifecycle management (e.g., renewals, variations), and regulatory information management EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 5

16. 2.2 BUSINESS OPERATIONS 2.2.1 COMMERCIAL Offshoring market research to GCCs enables companies to focus on core activities while benefiting from scalable, centralized operations that integrate global market data for faster insights Competitive Analysis Customer Insights Market Research Segmentation & Targeting Brand development & product launch strategies have limited offshoring due to the need for local market expertise, while low-complex, high- volume tasks like campaign design, execution, & performance evaluation, along with digital marketing, are more commonly offshored Brand Marketing Campaigns Development Marketing Strategy Product Launch Strategy Digital Marketing Pricing & Reimbursement services are getting traction as advanced GCCs have started delivering these activities Reimbursement Strategy Pricing Strategy Pricing & Reimbursement Market Access HEOR Sales Strategy Formulation Sales Training & Support Sales Strategy have low adoption due to high strategic nature of work Sales Strategy & Operations Territory Management Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 6

17. Huge availability of analytics talent pool makes it easier to transition sales forecasting activities Sales Forecasting/ Planning Marketing/ Sales Analytics Analytics & Reporting Customer Data Mgmt. Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. SUCCESS STORIES 600+ FTEs of commercial operations team based in Hyderabad work towards improving access to their innovative portfolios for Cardio Renal Metabolics, Oncology and Spinal Muscular Atrophy Teams in Hyderabad drive brand strategy, product launch strategies, and pricing & reimbursement activities, supported by highly skilled teams managing market research and analytics functions for US market 400+ FTEs within commercial operations teams based in Bangalore support US & Japan market The team drives Business Insights & Analytics (BI&A), market research, global omnichannel sales operations, omnichannel strategy, marketing operations, creative services etc. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 7

18. 2.2.2 SUPPLY CHAIN Expertise on technical & analytical capabilities have opened offshore opportunities for high- value activities such as supply chain design, demand/supply planning & production planning Supply Chain Design Demand & Planning Planning Supply Planning Production Planning Tactical task-based activities such as procurement ops & vendor management have moderate penetration as present, however will gain more traction due to its transaction nature Strategic Sourcing Contract Negotiation Procurement Vendor Mgmt. & Performance Monitoring PO Mgmt.t & Ops Order Processing Order Fulfilment Low-value, high- volume activities such as order management have higher adoption Order Management Customer Service Inventory management activities are transactional in nature & can be delivered remotely from GCCs, making it a highly mature service Inventory Planning Stock Monitoring Inventory Management Inventory Optimization & Reordering Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 8

19. Distribution planning, outbound logistics, cold chain management have limited penetration in India as it requires in- market presence Distribution Planning Outbound Logistics Mgmt. Distribution Cold Chain Mgmt. Order Fulfilment Front office activities such as returns processing, recall management, & claims/warranty mgmt. are retained within HQ Returns Processing Recall Management Reverse Logistics Claims/ Warranty Mgmt. Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. SUCCESS STORIES The GCC drives all the supply chain activities spanning across planning, procurement ops, order management, & inventory management; Over the years have developed capabilities to support in-market functions such as distribution, reverse logistics as well GCC teams manages & execute supply chain strategies for the group’s key oncology brand Kisqali for global market Team based in Bangalore drives supply chain design, demand/supply planning along with production planning High value activities such as strategic sourcing, contract negotiation etc. have matured over the years EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 1 9

20. 2.3 TECHNOLOGY & DIGITAL INNOVATION 2.3.1 INFORMATION TECHNOLOGY Access to a strong pool of enterprise IT strategists & digital transformation consultants trained in global methodologies - key driver for offshoring IT strategy activities to GCCs IT Gov & Compliance IT Financial Management Technology Roadmap Planning IT Vendor & Partner Management IT Strategy IT Portfolio & Program Mgmt. Business Architecture Data EAD maturity is driven by a strong ecosystem of certified architects (TOGAF, AWS/Azure) with deep expertise in multi-cloud, microservices, & API- driven architectures Architecture Enterprise Architectural Design Application Architecture Infrastructure Architecture Security Architecture Integration & API Mgmt. Application Maintenance & Support Software Development ADM is a mature function, often transitioned to GCCs in the initial phase, with abundant full-stack developers skilled in Agile, DevSecOps, & low- code/no-code platforms Application Development & Maintenance DevOps & CI/CD Agile & SDLC Management API & Quality Assurance & Testing Microservices Development Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 0

21. Indian GCCs run global network operations centers (NOCs) & security operations centers (SOCs) for 24x7 infrastructure monitoring; extensive experience in managing cloud migrations & hybrid IT models Network & Connectivity Mgmt. Cloud & Hybrid Infrastructure Infrastructure Management Data Centre Operations Storage & Backup Mgmt. Database Administration Virtualization/ Containerization IT Service Mgmt. (ITSM) IT Asset & License Mgmt. GCCs leverage AI-driven IT Ops automation (AIOps) for self-healing IT environments & have strong expertise in managing large-scale ITSM frameworks aligned with ITIL best practices Monitoring & Event Mgmt. Disaster Recovery & BCP IT Operations Capacity & Performance Management IT Security & Compliance GCCs run global service desks, supporting multilingual IT helpdesks & AI-powered chatbots, with expertise in enterprise digital workplace transformations, including VDI & modern collaboration tools Service Desk & IT Support End-User Device Mgmt. Collaboration Tools & Workplace IT End-User Services Identity & Access Mgmt. IT Training & Knowledge Management Access to large pool of GRC experts & cybersecurity specialists certified in ISO 27001, NIST, & GDPR – key driver for high maturity; GCCs operate global SOCs, offering real-time threat intelligence, vulnerability management, & incident response Security Threat Intel & Incident Response Operations Center Security Compliance & Audits Cybersecurity & Risk Management Data Privacy & Protection Incident Response & Forensics Cloud & Network Security Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 1

22. Access to a vast talent pool of AI/ML, predictive analytics, & bioinformatics experts enables GCCs to serve as data hubs, driving RWE, clinical trial analytics, & supply chain insights for global pharma & life sciences firms Business Intelligence (BI) Data Engineering Data & Analytics Cloud Data Platforms & Big Data Advanced Analytics & AI/ML Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. SUCCESS STORIES The Global Innovation & Technology Center (GITC) in Chennai & Bangalore houses 3000 FTEs; one of the largest technology centers in the country Capabilities of the center - Software Engineering, Cybersecurity, IT Infrastructure management, Cloud, Hyper Automation, Artificial Intelligence (AI) & Machine Learning (ML), eXtended Reality & Internet of Things Through its in-house center it has saved over $400 Millions in a span 2 years The Digital Data & Analytics center in Pune houses 300 FTEs Hub offers nearshore capabilities, driving personalized engagement, strategic forecasting, digital & web analytics, health equity initiatives, investment optimization, & market performance analysis for MSD’s businesses across Asia-Pacific, Europe, & Africa EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 2

23. 2.4 CORPORATE FUNCTIONS 2.4.1 HUMAN RESOURCE MANAGEMENT Workforce Planning Job Posting & Sourcing High-volume, low- disruption talent acquisition tasks such as sourcing, interview management, offers, and background verification are commonly transitioned Talent Acquisition Offer Background Verification Management Candidate Screening & Assessment Onboarding & Pre-boarding Employee Relations Org. Design & Change Mgmt. HRBP activities are usually retained in the home office due to their strategic, high-touch, and business-aligned role Human Resources Business Partner Performance Management Diversity, Equity & Inclusion (DEI) Talent & Succession Planning Leadership Coaching & Advisory Job Evaluation & Salary Benchmarking Salary Compensation & benchmarking transitions to GCCs after other functions mature, but low offshorability due to local legal complexities Administration Employee Benefits & Perks Equity & Stock Options Compensation & Benchmarking Global Mobility & Expat Management Incentive & Bonus Plans India offers rich talent and expertise to develop and deliver learning content. In mature GBSs, Mature L&D teams creates training program to support enterprise talent Learning Strategy Learning Content Design Learning & Development Learning Mgmt. System Admin Leadership Development Schedule & Delivery Training Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 3

24. Employee Records & Documentation HR Helpdesk & Employee Support Tactical task-based activities such employee records, HR helpdesk, payroll etc. led to high maturity of HR operations Payroll HR Policy & Compliance HR Operations Administration Exit Mgmt. & Offboarding HR Data Management HR Systems Administration Access to abundant analytical talent pool - key driver for higher adoption of HR Analytics HRIS & Analytics Predictive Workforce Analytics Employee Engagement & Pulse Surveys People Analytics & Reporting Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. SUCCESS STORIES The Bengaluru GCC houses a dedicated 'People Services' division managing talent acquisition, L&D, and HR operations, ensuring smooth workforce management and global support for GSK Team based in Hyderabad delivers all the capabilities spanning across TA to HR analytics EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 4

25. 2.4.2 FINANCE & ACCOUNTING Corporate Budgeting & Planning Capital Expenditure Mgmt. FP&A is gaining traction; multiple GCCs have transitioned or are exploring transitions; some have even established FP&A CoEs to drive value Strategic Revenue & Financial Analysis Financial Planning Financial Planning & Analysis Management Reporting& MIS Variance Analysis Automation Initiatives Forecasting & Projections Direct Tax Indirect Tax Taxation function has matured in the last decade; evolved GCCs transition once other processes are matured Taxation Planning & Intercompany Taxation Tax Tax Accounting & Reporting Planning & Risk Mgmt. Banking & Payment Processing Cash & Liquidity Mgmt. Cash & Treasury have moderate maturity due to regulatory constraints, and risk management considerations Debt & Cash & Treasury FX Risk Mgmt. Investment Mgmt. Treasury Comp & Risk Mgmt. Asset Depreciation & Amortization Capitalization / Classification Fixed Assests have a higher degree of maturity due to its standardized and rule-based processes Fixed Asset Register Maintenance Disposals & Impairment Testing Fixed Assets Lease Accounting Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 5

26. Balance Sheet Reconciliation GL Accounting High-volume, low- value activities make R2R highly matured services being delivered from GCCs Statutory & Regulatory Reporting Month-End & Year-End Close Record to Report Intercompany Accounting Expense Policy Compliance Employee Reimb T&E management is a highly standardized, rule-based, and automation driven function, making it one of the most offshored processes Travel & Expense Management T&E Reporting & Analytics Audit & Fraud Detection Corporate Credit Card Reconciliation Customer Billing & Invoicing Accounts Receivable Order-to-Cash is highly offshored due to their high potential for efficiency gain & standardization Chargebacks & Rebates Credit & Collections Order to Cash Bank Reconciliation Vendor Master Data Mgmt. Procure-to-Pay is one of the most matured function due to its transactional nature of work coupled with automation opportunities PO Processing Accounts Payable GR/IR Procure to Pay Reconciliation Invoice Processing & Approvals Heatmap indicates the adoption of the services among the LSHC GCCs in India High GCC adoption Low GCC adoption Methodology: Assessed the LSHC GCCs service catalog and workstreams/activities across processes using publicly available data. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 6

27. SUCCESS STORIES The Finance and Accounting team works on financial goal setting, strategic planning, administration, P&L management and performance of all finance activities including FP&A, Risk management The center houses a FP&A CoE delivering services to America's, EMEA and APAC region. Global finance hub established in 2007 at Bengaluru has now grown to 900 FTEs Team delivers services across end-to-end finance value chain for Novo Nordisk globally for Europe, North & South America, Africa, Middle East and Asia-Pacific (APAC) Matured capabilities include financial reporting and accounting, compliance, business planning and analysis, FP&A, O2C, R2R, P2P etc. for HQ, America’s EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 7

28. 3. Maturity Journey of LSHC GCCs in India

29. MATURITY STAGES OF LSHC GCCs IN INDIA 3.1 01 02 Service Enabler Strategic Advisor Early-stage GCCs focus on capacity building, primarily consolidating or centralizing processes for standardization & efficiency gains Initially service providers, these GCCs have evolved into strategic advisors upon maturity Deliver moderate to complex work in Non-Tech functions Perform low to moderately complex tasks within Non-Tech functions Drive high-end IT activities using digital technologies (Analytics, AI/ML, RPA, Cybersecurity, etc.) Support Tech functions such as ADM, IT Infrastructure, & IT Operations Establish CoEs for functions like FP&A, Supply Chain, Marketing, & Automation Minimal or no contribution to R&D/Product Development Contribute to R&D, Drug Discovery, & Product Development 03 Innovator Mature GCCs operate as strategic partners, focusing on customer impact & revenue generation. Own end-to-end processes in Non- Tech functions. Lead Digital Transformation for HQ. Develop core R&D capabilities in Drug Discovery and Product Development. Co-drive innovation through patents, startup collaborations, intrapreneurship programs, academia partnerships, investments, and acquisitions. EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 2 9

30. 3.2 KEY ACCELERATORS TO FAST TRACK THE MATURITY CURVE Service Enabler Strategic Advisor Innovator 1a. Establish Domain- Specific Centers of Excellence Enhance Talent Capabilities Strengthen Collaboration with Global R&D & Business Units Leverage Emerging Technologies 2a. Lead End-to-End R&D & Innovation Initiatives Forge Strategic Ecosystem Partnerships Scaling Digital & AI-Driven Solutions Adopt Risk-Sharing & Co- Investment Models 1b. 1c. 2b. 2c. 1d. 2d. 1a. Establishing Domain-Specific Centers of Excellence (CoEs) Developing specialized CoEs in areas such as healthcare analytics, digital transformation, or supply chain optimization 1b. Enhancing Talent Capabilities Upskilling teams in advanced analytics, predictive modelling, & domain-specific expertise (e.g., clinical trial optimization, pharmacovigilance) Fostering cross-functional collaboration between IT, data science, & business teams 1c. Strengthening Collaboration with Global R&D & Business Units Actively participating in pilot projects & strategic initiatives, such as AI-driven drug repurposing or real-world evidence (RWE) analysis Aligning local efforts with global organizational priorities to demonstrate value beyond operational support EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 3 0

31. 1d. Leveraging Emerging Technologies Deploying AI/ML, Robotic Process Automation, & cloud-native solutions to enhance service delivery & enable innovation Focusing on scalable & interoperable IT architectures to support future growth 2a. Leading End-to-End R&D and Innovation Initiatives Establishing dedicated R&D labs for drug discovery, medical device development, or digital therapeutics Outcome: Generate intellectual property (IP), file patents, and contribute to global research publications 2b. Forging Strategic Ecosystem Partnerships Collaborating with biotech startups, academic institutions, and contract research organizations (CROs) to co-develop innovative solutions Leveraging India’s thriving innovation ecosystem to accelerate pilot testing and commercialization 2c. Scaling Digital & AI-Driven Solutions Developing and deploying AI-powered diagnostic tools, telehealth platforms, or personalized medicine solutions for global markets Focusing on creating scalable and regulatory-compliant products 2d. Adopt Risk-Sharing & Co-Investment Models Partnering with global business units to co-invest in high-impact projects, such as genomic research or digital health platforms Sharing accountability for outcomes, demonstrating a commitment to driving enterprise- wide growth EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 3 1

32. 4. Navigating Ecosystem Complexities & Way Forward

33. KEY CONSIDERATIONS Attracting & Retaining Talent Offering competitive compensation, career development opportunities, & a positive workplace culture to hire & retain skilled professionals despite high competition & attrition Bridging Cultural & Communication Gaps Implementing cross-cultural training programs & promoting open communication channels to enhance collaboration between teams in different regions Streamlining Operations Across Time Zones Adopting standardized project management tools & methodologies to ensure seamless coordination & efficient project execution globally Managing Inflation & Cost Pressures Focusing on continuous process improvements, automation, & strategic sourcing to optimizing costs & maintaining financial efficiency amidst rising inflation & wages Fostering Innovation & Continuous Improvement Encouraging employee innovation through initiatives like hackathons, innovation labs, & continuous learning programs to drive growth & competitiveness Strengthening Data Security & Privacy Implementing advanced cybersecurity measures, conducting regular audits, & ensuring compliance with international data protection standards to protect valuable information EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 3 3

34. WAY FORWARD Product Development / R&D Ownership Groom Global Process Owners To drive enterprise-wide innovation & efficiency, GCCs must evolve beyond operational support to house global product owners with end-to-end accountability for developing products at scale. This strategic shift enables faster go-to- market, optimizes R&D investments, & unlocks reinvestment opportunities for sustained innovation & competitive advantage To drive operational excellence, GCCs must groom Global Process Owners (GPOs) to standardize processes, enhance compliance, & optimize costs. Strong GPO leadership fosters agility, enabling rapid adaptation to change while driving cross-functional collaboration & innovation. As GCCs evolve into strategic hubs, developing more GPOs will be key to sustaining competitive advantage Adopting Best Sourcing Differentiated EVP Enterprises should adopt a balanced strategy by retaining specialized & core activities within their GCCs to drive competitive advantage while outsourcing non- core functions to service providers. This approach enables organizations to optimize costs, leverage economies of scale, & access specialized expertise, enhancing overall agility & efficiency GCCs should differentiate their Employee Value Proposition (EVP) to attract & retain top talent. Beyond compensation, this includes fostering a strong culture, enabling continuous learning, offering flexible work models, & prioritizing diversity & social responsibility. By ensuring job stability & leveraging data- driven insights, GCCs can strengthen employee engagement & position themselves as employers of choice EXPANDING HORIZONS – THE MATURITY JOURNEY OF LIFE SCIENCES & HEALTHCARE GCCs IN INDIA 3 4

35. References 1. OPPI. (2024, May). Global Capabilities Centers, Enabling an environment for Innovation & Excellence - Bharat Ke Liye. OPPI. 2. ANSR. (2024, April). State of healthcare and life sciences GCCs in India. ANSR. 3. Deloitte. (2024, October). The growth and evolution of Global Capability Centres (GCCs) in India. Deloitte. 4. The Economic Times. (2023, September 8). GCCs expanding out of Bengaluru with 55 pc set up in other Indian locations: report. The Economic Times. 5. PWC. (2023, October). India’s global capability Centre market: Six imperatives to scale up further. PWC. 6. The Business Standard. (2025, February 10). Cultural integration, regulatory compliance top challenges for new GCCs. The Business Standard. 7. Inductus GCC. (2024, November 5). GCCs in India: Challenges, Talent Comparison, and Emerging Trends. Inductus GCC. 8. AstraZeneca. (2024, May). Celebrating 45 years of innovation in India . AstraZeneca. 9. InsudPharma. (2023, September). Spain headquartered, Insud Pharma Opens first of its kind Oligonucleotides Centre in Hyderabad, India. InsudPharma 10. ET Healthworld. (2023, January 31). Sandoz to set up Global Capability Centre in Hyderabad. ET Healthworld. 11. MSN. (2024, October 2). Rx Benefits to set up first India GCC in Hyderabad. MSN. 12. The Times of India. (2024, August 17). Evernorth sets up largest GCC outside US in Hyderabad. The Times of India. 13. DFE Pharma. (2022, May 26). DFE Pharma opens its new Center of Excellence in India to provide fast-track formulation services. DFE Pharma. 14. Takeda. (2024, May). India corporate overview. Takeda. 15. The Business Standard. (2025, February 10). Takeda opens Bengaluru ICC, targets 750 employees to boost India presence. The Business Standard. 16. The Economic Times. (2024, September 26). Bristol Myers Squibb opens innovation hub in Hyderabad. The Economic Times. 17. BioSpectrum. (2025, February 10). US-based ModMed opens global capability centre in Hyderabad. BioSpectrum. 18. Optum. (2022, July). Performance inspired by purpose- An overview of Optum in India. Optum. 19. BioSpectrum. (2024, July 31). Why global pharma companies choose India for GCCs. BioSpectrum. 20. FE Healthcare. (2024, November 2). GCCs tap India`s talent pool to offer better healthcare solutions. FE Healthcare. 21. The Times of India. (2024, September 18). Pfizer sets up global capability centre in India. The Times of India. 22. CXO Today.com. (2022, June 8). Tech-innovation and digital transformation. CXO Today.com. 23. BioSpectrum. (2025, January 31). How AI Innovations at GCCs Solidifying India’s Position in Global Life Sciences Industry. BioSpectrum. 24. EnTracker. (2025, January 31). Healthtech startups net $1.13 Bn in 2024: Entrackr Report. EnTracker. 25. CDSCO. (2019, March 19). The new drugs and clinical trials rules, 2019. CDSCO. 26. Arun K. Mankan et al., (2024, June 13). Cancer Trials Ecosystem in India—Ready for Prime Time?. JCO Glob Oncol 10, e2300405(2024). DOI:10.1200/GO.23.00405 27. The Business Standard. (2024, July 14). Tamil Nadu emerges as GCC magnet, pharma major AstraZeneca leads the charge. The Business Standard. 28. Healthcare Executive. (2024, November 28). Indian Healthcare Market projected to reach $638 billion by 2025: Bajaj Finserv AMC. Healthcare Executive. 29. Reuters. (2024, July 17). Sanofi to invest $437 mln in India global centre, double its workforce. Reuters. LIFE SCIENCES & HEALTHCARE GCCs IN INDIA – 2025 OUTLOOK & ROAD AHEAD 3 5

36. Authors DR. PURAV GANDHI FOUNDER & CEO SUDEEP KRISHNA CO-FOUNDER & PRESIDENT RITU BALIYA ENGAGEMENT MANAGER SUMITESH PATNAIK SENIOR CONSULTANT ABOUT HEALTHARK Healthark is a global management consulting firm, founded in 2015, specializing in the healthcare and life sciences industry. We are a team that blends deep domain expertise, scientific rigor, and a diverse skill set to address complex challenges for our clients. Our comprehensive range of services includes Growth Advisory, Market Eminence, AI & Analytics, Digital Transformation, and Real-World Evidence (RWE). We support Life Sciences & Healthcare Global Capability Centers (GCCs) through strategy formulation, execution, and BOT (Build, Operate, Transfer) solutions. We assist with location selection, entity setup, integration of key functions, and outsourced operations like financial, regulatory, and tax compliance while providing managed teams to reduce overheads. With a global presence in India, the United States, UAE, and Australia, we’ve executed projects across 70+ countries. Our expertise empowers clients to make informed, strategic decisions, and we work alongside them to implement solutions and achieve long-term success. At Healthark, we don’t just deliver insights—we ensure the successful execution of strategies that create lasting value. www.healtharkinsights.com Copyright © 2025 HEALTHARK. All rights reserved.