by: Karen Cayamanda
Friday, October 7, 2011 |
In the "Outsourcing and Offshoring Trends in Pharmaceuticals" report from global services research and advisory firm Everest Group, it is seen that outsourcing spending of pharmaceutical companies will continue to grow as the highest spike of outsourcing deals was posted in 2010 (10-year high). This was an 81-percent increase compared to contract signings in 2009.
The pharmaceutical industry spends US$490-670 billion per year or 3-5 percent outsourcing levels. According to the report, this can become 10-15 percent levels. Amneet Singh, Global Sourcing Vice President, said the growth of outsourcing deals posted in 2010 was driven by the increase in demand during the economic crisis. Other factors such as cost issues, changes in the pharmaceutical landscape, and emerging markets are also considered growth drivers. It is predicted that outsourcing activity will increase in drug development and research, supply chain management, data management, as well as analytics processes.
These are the other highlights of the report:
Also discussed in the report were the changes in the service offerings of providers. Global Sourcing Vice President H. Karthik said the evolving pharmaceutical industry leads to changes in the service provider landscape. From offering traditional services, providers are expanding their offerings which now include specific functions. They are likewise improving their services and capabilities to enable them to offer other pharma-related processes.