by: Sarah Joson
Monday, October 24, 2016 | Comments (0)
Since we are entering the fourth quarter of 2016 and before third quarter reports are released, here’s a rundown of what happened during the second quarter.
Ten key outsourcing markets have been analysed in the Q2 2016 Supply Wisdom Monitor: Country Risk Index. The ranking factors used by SupplyWisdom.com are the country's financial stability, scalability, geo-political soundness, infrastructure, quality of life, business environment, among others.
Market intelligence firm Information Services Group recently released its ISG Outsourcing Index where it was revealed that the outsourcing activity and annual contract value for during the second quarter had recovered from the weak first quarter. The report also indicated that smaller contracts are gaining traction, ACV in the Americas gains pace and has doubled in digits, EMEA and Asia-Pacific had surpassed the $2 billion mark for the 6th straight quarter and has pulled through the lack luster first quarter, but the growth in ACV is slower compared to last year, and the future is filled with uncertainty as the market continues to adopt Digital As-a-Service.
However, the market report indicated that although outsourcing activity improved globally, the value of the deals had declined.
The ISG Outsourcing Index™ analyzes and measures commercial outsourcing contracts with annual contract values (ACV) of $5 million or more and found that 451 deals were signed during the second quarter, on top of the 745 agreements in the first six months noted this year.
Even with the sharp increase in outsourcing activity, the $6.2 billion ACV seen circulating in the second quarter is seven percent less than the figures posted during the second quarter of last year, but jumped 24 percent from the first quarter of this year. The total ACV posted in the first half of this year reached $11.2 billion, 14 percent down from the previous year. One of the factors identified as the reason for the drop is this year’s first quarter - the slowest in the last 10 years.
Several reasons are linked with the obvious increase in activity which are buyers are looking for more convenient deals - cheaper and more flexible now that technology is disrupting much of the environment in the outsourcing space.
According to ISG President and Partner John Keppel, the outsourcing market is continuously adopting global options, which then further accelerate the activity. As a matter of fact, three of the last six months have posted the highest outsourcing activity. Moreover, he anticipates that the trend towards smaller deals will continue adding that from the economic downturn in 2008; only the volume of contracts grew, whereas the ACV maintained momentum.
Keppel added that ACVs grew from a slow first quarter and surpassed the $6 billion without backing from mega deals. Only two deals in the second quarter had an ACV of over $100 million, which is very unlikely. Clearly, in today’s time, the size of the deal is no longer the driver of the market - it is now the size of the demand.
by: Sarah Joson
Thursday, March 12, 2015 | Comments (0)
Category: Outsourcing News
WhaTech.com recently revealed the highlights of a study in the world of global healthcare contract research outsourcing (HCRO) market. “Healthcare Contract Research Outsourcing Market - Global Industry Analysis, Size, Share, Trends And Forecast 2012 - 2018” was done by US-based market intelligence firm Transparency Market Research. The report covers not only the current contracts within the global healthcare contract research outsourcing market, but previous data as well. Data from the report are used to create predictions on the market’s development up until 2018.
Back in 2011, the HCRO market was valued at US$25.08 billion. It has been steadily growing at a compound annual growth rate (CAGR) of 14.7 percent, and with the same growth rate, it could be valued at US$65.03 billion by 2018.
The global healthcare contract research outsourcing market is composed of four categories on the basis of services: clinical trial services, clinical data management services, regulatory services, and medical writing services. The clinical trial outsourcing segment took the lead in the global healthcare contract research outsourcing market, accounting for US$14.21 billion in 2010. As for the location, North America accounted for majority of the market share with 64.1 percent. Looking back on the statistics, Europe and Asia follow the North American market for HCRO.
The report also stated that the HCRO market in Asia will continue to grow due to the increasing number of contract research service providers. As for the recent upward trend in the global HCRO market, it was found that the increasing cost and reduced productivity of healthcare research are driving growth. Another factor that’s seen driving the growth of the HCRO market is the expired patent for in-house healthcare research amongst healthcare providers. Moreover, the declining research and development activity for new drug formulations, as well as globalization of drug development, help in the growth of the market.
However, quality issues, varying regulations, and approval processes for drug research are cited as threats to the growth of the HCRO market. According to the report, drug research, which is done remotely or does not have on-site supervision from the client company, is at risk for quality issues relating to methodology, equipment, and hygiene protocol.
Friday, July 18, 2014 | Comments (0)
Category: Outsourcing News