ALBANY, New York, August 5, 2016 /PRNewswire/ --
The presence of a large number of contract research organizations (CROs) and contract manufacturing organizations (CMOs) that offer end-to-end business solutions to life science companies has rendered a highly competitive landscape to the global life science BPO market. In order to sustain their competitiveness, the most prominent companies in the market such as Accenture plc, Cognizant Technology Solutions, and Infosys Limited are offering bundled services to their clients. Moreover, adopting innovative technologies is a popular trend among the leading market players. According to a new study by Transparency Market Research (TMR), these factors have kept the level of competition very high in the global life sciences BPO market.
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Demand for Outsourcing Solutions Surges as Pharma Companies Increasingly Focus on their Core Competencies
Demand for life sciences BPO solutions is expected to surge considerably in the forthcoming years. "With pharmaceutical companies revising their business strategies, they are more likely to outsource their non-core business activities to third-party solution providers," said a lead TMR analyst. In the last five years, multinational companies such as Pfizer, GSK, and Novartis have already either divested or outsourced their noncore business activities to CMOs in order to enhance their core competencies. This trend is expected to take a bigger shape in the near future, thus fuelling demand for life sciences BPO services.
Threat Regarding Breach of Proprietary Information Limits Proliferation of Life Sciences BPO Services
As per a TMR analyst, "Despite witnessing positive growth opportunities, issues pertaining to product quality and breach of pipeline-related information are limiting the proliferation of life sciences BPO services." As pharmaceutical organizations increasingly become connected via cloud or social media channels, they are witnessing a spurt of potential threats. It is thus imperative for the life sciences industry to safeguard their proprietary information and highly sensitive personal data against breaches. Such issues pertaining to information breach often discourage pharma organizations to partner with CROs and CMOs.
Evolution of Novel Delivery Systems to Boost Demand for Life Sciences BPO Services
Nevertheless, the demand for life sciences BPO services is expected to surge in response to the increasing demand for biologic and biosimilar drugs. In the last couple of years, the industry supply chain has significantly evolved as a result of the growth witnessed in biologics. The rise in demand for manufacturing, packaging, and logistics components is thus noted across the pharmaceutical industry. This has made outsourcing services offered by life sciences BPO indispensable for pharma companies. Furthermore, due to the evolution of novel delivery forms such as transdermal patches, infusion therapies, and autoinjector devices, drug manufacturers are increasingly seeking outsourcing partners to control cost contingencies.
In terms of services, the global life sciences BPO market can be segmented into pharmaceutical outsourcing and others. Contract research outsourcing (CRO) and contract manufacturing outsourcing (CMO) are the key segments of pharmaceutical outsourcing. Of these the CMO segment held the lion's share in the market in 2014. Regionally, the global life sciences BPO market was led by North America.
As per Transparency Market Research, the global life sciences BPO market, which stood at US$127.4 bn in 2014, is expected to reach US$286.3 bn by the end of 2023. The market will thus exhibit a CAGR of 8.9% between 2015 and 2023.
This review is based on a report published by Transparency Market Research, titled "Life Sciences BPO Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2023."
- Demand for services from CMOs to surge at 6.9% CAGR between 2015 and 2023
- Threat of proprietary data breach could limit demand for outsourcing services
- Life sciences BPO services need to monetize on rising demand for biosimilars and biologic drugs.
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Transparency Market Research (TMR) is a U.S. based provider of syndicated research, customized research, and consulting services. TMR's global and regional market intelligence coverage includes industries such as pharmaceutical, chemicals and materials, technology and media, food and beverages, and consumer goods, among others. Each TMR research report provides clients with a 360-degree view of the market with statistical forecasts, competitive landscape, detailed segmentation, key trends, and strategic recommendations.
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SOURCE Transparency Market Research