The team substituted Swift with his fellow Briton Jeremy Hunt, a veteran in his 14th professional year, who has previously competed in all three of cycling's Grand Tours.
"Well that is my Giro over, had a very heavy crash out on the bike today very disappointed not to be able to start," Swift said via Twitter.
Swift focused on the track during the early part of the season, scoring a world championship title in the scratch race. He will now devote his time to rehabilitating his shoulder.
Hunt will now join world champion Mark Cavendish, Bernhard Eisel, Juan Antonio Flecha, Sergio Henao, Peter Kennaugh, Ian Stannard, Geraint Thomas and Rigoberto Uran for the Giro d'Italia, which starts on Saturday with an 8.7-kilometre time trial in Herning, Denmark.