The life sciences BPO industry includes services like contract research and manufacturing, which involve clinical trials management, data management, regulatory affairs, and medical writing. Life sciences BPO services help pharmaceutical and biotechnology companies to optimize costs and focus on core areas of business. The cost of clinical trials and drug development has risen significantly over the past decade. Engaging specialized BPO providers for non-core operations allows life sciences companies to reduce operating expenses substantially.
The global Life Sciences BPO Market is estimated to be valued at US$ 222.9 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for cost optimization through outsourcing of non-core functions to BPO providers is driving high demand in the life sciences BPO market. By outsourcing activities like clinical trials management, data processing, and regulatory filing preparations to expert BPO vendors, pharmaceutical and biotech companies can avoid maintaining in-house infrastructure and focus capital on core research and drug development initiatives. This allows for significant savings in operational expenditure. As the costs of drug development continue rising, the scope for cost optimization through life sciences BPO engagement is increasing considerably. The specialized skills and economies of scale that BPO providers offer help life sciences organizations optimize research budgets considerably.
Porter’s Analysis
Threat of new entrants: Life Sciences BPO is a specialized field requiring expertise in various areas like data management, clinical trials management etc. Building required infrastructure and capabilities acts as a barrier for new entrants.
Bargaining power of buyers: Large pharmaceutical companies have significant bargaining power due to their size and can negotiate prices downwards. However, specialized services offered give some bargaining power to BPO providers.
Bargaining power of suppliers: Skilled workforce is critical for BPO providers. Fluctuating talent supply impacts costs. Training new hires also increases supplier bargaining power.
Threat of new substitutes: Alternate outsourcing locations with cheaper costs pose substitution threat. However, compliance with strict regulations and data privacy laws favors established BPO hubs.
Competitive rivalry: Presence of numerous global and regional players results in high competition. Scale, expertise, capability across value chain and long-term client relationships determine competitive advantage.
SWOT Analysis
Strength: Offers cost savings and access to specialized expertise. Helps core clients focus on innovation. Wide service portfolio and presence across value chain.
Weakness: Dependency on few large clients increases risk. Retaining skilled talent and high employee turnover impacts operations.
Opportunity: Increased R&D outsourcing and regulatory compliance drive demand. Emerging markets provide new growth avenues. Adjacent services like AI/Analytics present opportunities.
Threats: Economic slowdowns and pricing pressures. Regulatory changes negatively impact operations. Higher localization requirements threaten existing business models.
Key Takeaways
The global Life Sciences BPO market is expected to witness high growth on account of increased R&D outsourcing and growing regulatory requirements. The global Life Sciences BPO Market is estimated to be valued at US$ 222.9 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
North America dominates currently due to presence of pharmaceutical giants and supportive regulatory environment for outsourcing. Key regional players are seeking to enhance local capabilities in line with rising localization norms.
Europe remains the second largest market driven by presence of major pharmaceutical companies. Significant outsourcing to India and Asia Pacific is prevailing. Stringent data privacy laws pose challenges for service providers.
Key players operating in the Life Sciences BPO market are Accenture, Plc., Boehringer Ingelheim GmbH, Charles River Laboratories International, Inc., Cognizant Technology Solutions, Covance, Inc., DSM, Fareva, ICON, Plc, Infosys, Catalent, Inc., Genpact Limited, Health Decisions, Inc., and ProMab Biotechnologies, Inc. Large players are focused on mergers and acquisitions to expand service offerings and capabilities.
Life Sciences BPO Market: IntroductionTransparency Market Research has published a new report titled, ‘Global Life Sciences BPO Market’.
According to the report, the global life sciences BPO market was valued at ~US$ 214 Bn in 2018 and is projected to expand at a CAGR of ~8% from 2019 to 2027.Request Brochure –https://www.transparencymarketresearch.com/sample/sample.php?flag=B_id=1782Broad and Growing Product Pipeline to Drive Adoption of Advanced Life Sciences BPORise in demand for new drugs and novel therapies for treatment of diseases such as cancer and immunological disorders coupled with the evolving research & development process has increased the number of compounds in pipeline in the last decade.
This in turn drives the global life sciences BPO market.Efforts to Optimize Costs and Development TimeEscalating costs of conducting clinical trials, requirement of data quality, enrollment targets, financial demands regarding setting up of a clinical research practice, and other management related activities drive the outsourcing services.
According to the Tufts Center for the Study of Drug Development, outsourcing to CROs has supported companies in keeping R head counts stable, even though the number of active clinical trials across the world has increased by 80%.
Moreover, trials outsourced to CROs are, on average, completed 30% sooner than in-house clinical trials, providing an average timesaving of four to five months.Request COVID Analysis on Life Sciences BPO Market – https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19_id=1782Contract Manufacturing Organizations to Lead Global MarketBased on service type, the contract manufacturing organizations segment dominated the global market in 2018.
Significant increase in research and development costs, technological developments, and product innovation, which accounts for high R costs prompt several pharmaceutical and medical device companies to outsource preclinical services to CROs.
