Contract Research Organizations Hold Dominant Share in Global Life Sciences BPO Market Transparency Market Research has published a new market report titled, “Life Sciences BPO Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2023.� According to the report, the global life sciences BPO market was valued at US$127.4 bn in 2014 and is projected to expand at a CAGR of 8.9% from 2015 to 2023 to reach US$286.3 bn in 2023. In current market scenario, strategic outsourcing services play an important role in addressing various challenges faced by pharmaceutical companies such as stagnant productivity volume, regulatory changes, pricing pressures and thinner profit margins. Strategic outsourcing has become an industry norm and offers a wide range of services from screening and lead identification to toxicology, pre-clinical studies, clinical trials, manufacturing and marketing.
Pharmaceutical outsourcing market, particularly contract manufacturing organizations (CMO), contract research organizations (CRO) and insurance/payer based services market has evolved over the recent years and expected foresee a healthy growth in the coming decade. Nowadays, outsourcing has become a feasible and a beneficial business strategy for pharmaceutical, biotechnology and life sciences industries that enables them to transfer non-core activities to outsourcing partners in order to focus on their distribution networks, competitive advantage, future growth, marketing strategies and issues imperative to survival. Earlier, outsourcing was considered as a cost saving business strategy by most of the pharmaceutical companies, but now it has evolved as a strategic competitive requirement to meet growing demands, offer flexibility in production and enhance company’s competitive advantage. The global life sciences BPO market has been studied from two broad perspectives: by Services and by Geography. The services market is further segmented into pharmaceutical outsourcing and others. The pharmaceutical outsourcing market encompasses CRO, CSO, and CMO; whereas the Others segment provides a cumulative market for payers and provider based services that are primarily outsourced. This market holds immense growth owing to the rise in demand for generic drugs, increase in R&D investment by life sciences companies. In addition, a rise in the number of block buster drugs going off-patent and increased adoption of novel technologies are further boosting the growth of this market.