Life sciences outsourcing helps pharmaceutical and biotechnology companies focus on their core operations by outsourcing key non-core functions like sales, marketing support services, clinical trials management, claims processing, and patient engagement to specialized BPO service providers. This enables them to boost efficiency and efficacy while reducing costs.
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 key trends:
Digital transformation is accelerating across the pharmaceutical sector. Pharmaceutical companies are increasingly adopting digital technologies like artificial intelligence, Internet of Things, Big Data analytics and cloud computing to optimize processes, reduce costs and improve healthcare delivery. This is fueling the demand for IT infrastructure and digital capabilities among life sciences BPO service providers. Their integration of digital technologies with core BPO services is allowing pharmaceutical companies to enhance productivity, fuel innovation and achieve higher levels of efficiencies. This rising digitalization in the pharmaceutical industry is expected to be a major growth driver for the life sciences BPO market during the forecast period.
SWOT Analysis
Strength: Life Sciences BPO offers cost savings for companies. Outsourcing non-core services allows companies to focus internal resources on core competencies.
Weakness: Regulatory compliance and confidentiality of sensitive patient data are major challenges. Any non-compliance or data breach can damage reputation.
Opportunity: Emerging markets offer significant growth potential. Increasing R&D expenditure worldwide on drug discovery and clinical trials will boost demand.
Threats: Protectionism policies can restrict outsourcing. Currency fluctuations impact profit margins for offshore service providers.
Key Takeaways
The global Life Sciences BPO market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is projected to reach US$ 222.9 Bn, indicating a CAGR of 14%.
Regional analysis: North America currently holds the largest share of the global market due to presence of many pharmaceutical companies and clinical research organizations. However, Asia Pacific is expected to grow at the fastest pace led by India, China and others. Low-cost skilled resources and government support for health care infrastructure development are driving outsourcing activities to Asia Pacific region.
Key players: 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. These players are focusing on strategic partnerships and acquisitions to expand their service offerings and geographic footprint.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it