Off-shoring opportunities for

the pharmaceuticals industry

The major factors...
● Demand & Supply forces

● Cost & Revenue benefits

● Enhanced capabilities in offshore locations

● Risk avoidance

2/10
Many large pharmacos have been off-shoring process of
all kinds.

● General & Administrative (HR,IT,F&A)

● Technical Support (Data Management, Market

Research)

● R&D (Clinical trials/development)

3/10
Improvements...

With shrinking revenues associated with falling

prices, paharmacos are seeking to increase revenues
through such as
● Increased R&D productivity

● New sales and marketing models

● International expansions

● Global resourcing/offshoring

4/10
The benefits...

Non-financial
● Increased influence with emerging markets

governments
eg: To negotiate Tax concession
● Faster time to market

● Increased productivity by using graduates for

low-level work and certified vendors

● Global process harmonization/consolidation

through shared services across locations

● Chance to offer new labour-intensive services

5/10
In INDIA.....
India has a large pool of highly qualified talent.
● 15-20% PhDs in leading bio-pharmaceutical and

informatics

Equally large pool of highly skilled IT

professionals

Giving India to setup specialist offshore based start-

ups

6/10
In INDIA ....cont.

● Development in clinical trials (eg Data Mgmnt. Stat.

Analysis etc)
● Research -chemical synthesis, s/w development, bio

-informatics
● Sales and Marketing

● IT application development

● Finance and Accouniting

7/10
 Offshoring IT services...

● Lower cost of technical design, development, testing

and application support personnel
● Lower cost of infrastructure support-monitoring,

system administration, help-desk personnel

Process Productivity
●Demand Management and productivity improvement

●Automation in Help-Desk

8/10
 Offshoring IT services... Cont.

Cost Avoidance and risk reduction

● Compliance improvement & Compliance cost

Reduce delays by lowering patient drop-out rate

through proactive monitoring via web/email tools

Offshoring IT services not only increases system

availability through increased service levels, but
also improves quality, especially in compliance.

9/10
Significant opportunities exist for Indian
players
Indian providers should focus on the opportunities that
allow them to capitalise on their core strength. Indian
providers should consider three opportunities:

● Bio-informatics, Data management, Application

Development, and IT infrastructure services.

● Back-office processing ( F&A, Transaction

Processing, analytics modelling/ forecasting .

● Non-IP-heavy R&D processing such as clinical

development.

10/10