Encapsulated cell therapy has shown great potential in the treatment of several forms of cancer. Microencapsulation of these cancer cells can protect the core from the harmful effects of the neighboring cellular environment and can supply nutrients and oxygen. Such an encapsulation technique ensures cell viability and enables targeted drug delivery in cancer therapy. The cells immobilized with a biocompatible shell material can be isolated from the ambient and can move in constricted microcapillary. However, transportation of these cells through the narrow microcapillary may squeeze and mechanically damage the cells which threaten the cell viability. The cell type, conditions and the viscoelastic properties of the shell can dictate cell viability. A front-tracking numerical simulation shows that the engineered shell material with higher viscoelasticity improves the cell viability. It is also shown that low cortical tension of cells can contribute to lower cell viability.