According to Frost & Sullivan’s "Analysis of the European Contract Research Outsourcing Markets" report, the medical research outsourcing industry will post significant growth as more and more European pharmaceutical and biotech firms are starting to outsource the costly process of doing research. This positioned the growth of the sector into overdrive.
In fact, the study shows that in 2011, the market posted revenues that nearly reached $6.07 billion and it further predicts that by 2018, it will reach $11.54 billion. The largest share of the contract research organizations (CROs) market in Europe is accounted for by the Phase III clinical trials account.
Frost & Sullivan explains that CROs promote innovation and improvement in chemical and biological drug development while keeping costs of new narcotics low. Cardiovascular, oncology, autoimmune, central nervous system (CNS), infectious, endocrine, and metabolic disease areas are some of the medical divisions that the CROs are involved with.
Deepika Pramod Chopda, Research Analyst at Frost & Sullivan, said the drugs are tested for their ability to work, safety, and that these are safe for patients who belong to different ethnicities and parts of the world.
Moreover, CROs can avoid accruing high rates for research and development processes, even if done internally, as more specialized research technologies along with an exclusive focus on drug development and testing are made available.
Information Communications Technology (ICT) Davao President Lizabel Holganza foresees a 30-percent increase in job opportunities in the business process outsourcing (BPO) sector this year specifically within the region as more BPO firms are believed to have expansion plans.
According to Bert Barriga, Executive Vice-president at ICT-Davao, nearly 16,000 jobs were produced by BPOs based in Davao last year, which clearly has exceeded half of the 30,000 jobs targeted by ICT-Davao for 2015.
Moreover, he added that they are doing their best to provide BPO training for the region’s local talent.
Meanwhile, a Smarter Countryside campaign, which is aimed to provide more training programs across different outsourcing processes and services, is scheduled to be launched next month in the city. There’s also an on-going Industry-based Training for Work Scholarship Program (I-TWSP) spearheaded by the Technical Education and Skills Development Authority (Tesda).
A total of 1,355 enterprise buyers, service providers, and consultants recently participated in a survey done by HfS Research and KPMG, comparing business process outsourcing with manufacturing outsourcing trends. The results showed that stakeholders have no plans of decreasing their outsourcing activity, as they are still looking to cut costs and become more updated in terms of the latest business processes.
According to HfS Analyst Phil Ferscht, outsourcing, a process which is commonly frowned upon by many, experienced slowdown in 2012. On the other hand, survey results indicate that most of the firms are motivated to reinforce their outsourcing portfolio using improved methods.
Ferscht noted that out of 399 major buy-side survey participants, less than 20 percent are planning to minimize their outsourcing scope for IT or business functions. He also added that 50 percent are planning to outsource application services, four out of 10 will outsource their finance and accounting, while one-third are considering to outsource their HR functions.
It was also found out that 87 percent want to cut operating costs, 74 percent want to streamline processes, while 81 percent seek growth. Ferscht also added that payroll is another segment that enterprises are looking to outsource using the services of the best providers in the business.
According to Rick Santos, President at CBRE Philippines, demand for residential and commercial properties remains positive for the coming years, fuelled by unrelenting growth of residential, gaming and leisure, and business process outsourcing (BPO) industries. He also said buildings will become more eco-friendly and more sustainable to cut costs.
In line with that, developers are expected to put up more offices as the BPO sector is predicted to continue to grow. Moreover, demand for residential condominiums is high as units become more and more affordable.
About 80 to 90 percent of office real estate will be used by BPOs, said CBRE Global Corporate Services Vice Chairman Joey Radovan. His forecast is paralleled to the sector’s targets of increasing the workforce from 1.2 million to 1.4 million and $26 billion in revenues by 2016. He added that even if the economy faces a stronger peso, the quality of the Philippine workforce is what really matters.
One of the top search engines, Google, recently launched an office in Makati, the central business district of the Philippines.
On behalf of President Benigno "Noynoy" Aquino III during the company’s opening day, Manuel L. Quezon III, Undersecretary for Presidential Communications Development and Strategic Planning, said great possibilities will come with Google’s arrival. In an interview with Yahoo! Southeast Asia, he said the opening of a Google office in the Philippines shows how Filipino consumers value technology, and how users use the internet to their benefit.
Narciso Reyes, Google Country Manager, said the Google Philippine team will focus on providing better services to Filipino users, specially small and large businesses to prosper and in turn, contribute more to the local economy.
According to market research and consultancy firm Information Services Group (ISG), the UK was the IT outsourcing market leader last year. IT outsourcing contract values increased amidst the weak outsourcing market in the EMEA region.
In Q4, the region posted €2.1bn, a six percent decline from Q3 2012, and an even larger decline of 29 percent from Q4 2011. This was based on the 4Q12 EMEA TPI Index, with commercial outsourcing contracts which are €4m (£3.35m) or higher.
The financial services sector was identified by ISG as having the most activity and large facilities management contracts. This drove the average contract value in the UK to rise 20 percent last year to €3.7bn. ISG also said UK experienced a steady contracting environment last year, even with the decline in the number of contracts signed (year-on-year) in 2011.
Meanwhile, a 12 percent drop from 2011 was seen in EMEA’s 2012 total annual contract value. The region closed 434 deals in 2012, a 21 percent decrease compared with the record high posted by the region last year.
John Keppel, ISG North Europe President, said data from the past is crucial. It still shows that contracts from the EMEA region grew twice its size in 2007. He said this was caused by changes in the market, more multi-sourcing offerings, and digital evolution propelled by first-time outsourcing buyers.
UK-based IT analyst firm Ovum recently revealed through its "2013 Trends to Watch: Bundled Outsourcing" report that IT buyers prefer longer-term, single supplier IT outsourcing deals. This can be attributed to the fact that multi-sourcing contracts didn’t live up to its premise and IT outsourcing clients are looking for more stability and control.
According to Jens Butler, principal analyst for IT services at Ovum, buyers nowadays are already experienced and know well enough when a plan will not work when it comes to outsourcing, as they are on their third and second generation of doing so. He added that most of the clients saw that multi-sourcing will ignite loss of control.
Moreover, he said clients are looking beyond cost savings, and want to improve customer satisfaction and value for the company.
Ovum also monitors packaged outsourcing activities periodically. They found that international contracts from manufacturing, financial services, and the government sector go beyond four years. Furthermore, the change from multi-sourcing to long-term contracts was widely observed in the insurance sector.