The Pharmaceutical Industry Sourcing Landscape In 2011: Pharmaceutical Outsourcing Expands To Include Core Services

ValueNotes, January 2012, Pages: 30

This industry analysis report examines the key business challenges faced by the global pharmaceuticals industry and the resulting impact of outsourcing within this segment. This industry has traditionally been the main support function for the healthcare system by innovating, marketing and supplying drugs. However, over the past few years, with increasing costs for research and development and marketing services, major pharmaceutical companies have turned towards external partners to help them design better drugs, control expenditures, and reduce capital investment.

Outsourcing has emerged as a key strategic option for these companies, as a slew of core and non core activities are executed through a streamlined third party collaborative approach. This results in faster turnaround times and lower costs for clinical trials and drug development. Apart from these specific activities, outsourcing partners help global pharmaceutical companies with their sales and marketing efforts. Traditional BPO activities such as billing, finance and accounting and call center support are increasingly outsourced as well to a select group of service providers offering a vast spectrum of services for the industry.

Contents

Changes in the pharmaceutical industry
Race to innovate

Challenges to transform the pharmaceutical industry
Impending expiry of patents
R&D expenditure continues to increase
Pricing and other pressures squeeze profits
Regulation compliance across functions
Recession decelerates the industry

Outsourcing their way out of challenges
Reduction in overall costs
Improving efficiency across functions
Expand access to resources

Service providers expanding presence
Global vendor base gets competitive

Trends shaping the industry and the road ahead
Outsourcing of core services is common
Nature of partnership is more strategic
Opportunities ahead in R&D and clinical development
Potential for outsourcing sales and marketing
Benefits of offshoring acknowledged
Multiple vendor strategy to continue
Combined offering enables competitive pricing

About the authors
Phil Fersht
Deepali Sathe

About HfS Research

- Accenture
- Affiliated Computer Services (ACS)
- AstraZeneca
- Bristol- Myers
- Convergys
- Cognizant
- Covance
- Eli Lilly
- Genpact
- GVK Biosciences
- GlaxoSmithKline
- HIKAL
- HCL Technologies
- Icon
- INC research
- IBM
- Infosys
- Kendle
- Mahindra Satyam BPO
- Merck
- Merck Sharp and Dohme (MSD)
- Novartis
- Ocimum biosolutions
- PPD
- Parexel
- Parexel and Icon
- PDI- inc
- Parexel
- Persistent Systems
- Pfizer
- Quintiles
- Roche
- Squibb
- Sanofi - aventis
- Syntelinc
- Syngene
- Sigma Pharmaceuticals
- Suven lifesciences
- TCS
- Veeda
- Wipro
- inVentiv Health

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