IDC expects IT outsourcing boom in life science sector

By EgovAsia Editors | Aug 3, 2010

Life science companies are increasingly utilizing third-party outsourcing firms to both augment and replace varying aspects of their IT responsibilities, and spending on these services is expected to grow over the next 12 months.  This was revealed in a new report by IDC Health Insights, "Vendor Assessment: Life Science Buyers Guide to Manufacturing and Supply Chain IT Outsourcing".
 
"With the global recession now in the rear view mirror, life science companies are slowly shifting their primary cost-cutting focus back toward long-term top-line growth," said Eric Newmark, research manager with IDC Health Insights. "Manufacturing and supply chain strategies not only remain a critical component of maintaining lower-costs, but also hold the key to reducing corporate liability, protecting brand equity and optimizing operational efficiency."
 
In a 2008 IDC Health Insights study, 48% of pharmaceutical companies said that they outsourced some aspect of manufacturing or supply chain related IT. Over the past two years, this number has risen to 63%, demonstrating the growing importance of outsourcing within manufacturing and supply chain operations.
Industry sentiment and adoption trends all point to continued growth in IT outsourcing between 4-6% over the next 12-18 months, followed by moderate growth of approximately 4% annually for the next 2 to 3 years.
 
Of the 63% of companies currently outsourcing some aspect of manufacturing or supply chain operations, approximately 18% use only U.S.-based firms, 4% use only offshore firms, and 41% use a mix of both.