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IT Spending Study At Major Pharma Companies
Enterprise Analysis Corporation (EAC), Dec 2005
Seven of the 'Top-20' pharma companies participated in this just completed 2005 IT spending study. Given that the combined revenues of these seven companies represent almost 25% of the total worldwide sales of the 'Top-20' pharma enterprises, we believe that the results of this study reflect a reasonable sample of IT for this sector. We interviewed senior level IT executives at these companies. The study covered their IT expenditures as a percentage of Pharma sales and allocations by various categories for 2005 along with planned changes for 2006 and an outlook through 2009. Other topics covered, which would be of interest to IT executives, include responsibilities for global standards and IT architecture, procurement responsibilities, top IT priorities and Pharma's perceptions regarding IT vendors.
Topics of interest to IT vendors would be the allocation of $2.8 billion of projected IT expenditure by expense category in 2005 and 2006, along with the reasons and drivers for significant increases through 2009. The IT Pharma executives also rate and explain their perceptions of IT vendors’ understanding of pharma company needs.
The following specific questions are answered in this study:
- IT expenditures as a percentage of enterprise sales revenues
- The allocation of IT spending among significant IT categories
- Changes in the allocation of IT expenditures projected for 2006
- Projected IT budget for the 2007-2009 timeframe
- Top IT priorities for the next three years
- Procurement responsibilities and decision process
- Responsibilities for global standards and IT architecture for each enterprise
- Perception of IT vendors and their sensitivity to Pharma's needs
We are a healthcare consulting and market research company serving global healthcare and life science companies since 1987. Our clients have been utilizing our fact-based information and projected trend analysis for nearly 20 years to guide their marketplace and strategic decision making.
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