Life Sciences BPO Market

Life Sciences BPO Market- Snapshot

The pharmaceutical industry across the globe is under considerable pressure to reduce cost as several leading patents face expiry. Generic drugs are extremely prevalent and easy to obtain in the developing regions of the world. In addition to that, there exists considerable potential for the development of various drugs that could be used in the treatment of many illnesses such as AIDS, cancer. Further, government in some of the developed countries are cutting down on subsidies and budget to make way for the growth of the global life sciences BPO market.

The trends prevalent in the market have compelled pharmaceutical companies to focus on increased research and development activities and reduce the cost through outsourcing of the process. The increasing proficiency of contract manufacturing organizations (CMO) together with the rising need to cut down cost in the developing parts of the world is estimated to fuel growth of the global life sciences BPO market in the years to come.

The global life sciences BPO market is projected to clock a growth rate of 8.9% CAGR over the period of review, 2015 to 2023. Rising at such a high growth rate, the global life sciences BPO market is likely to reach prominence acquiring a value of US$ 286.3 billion through 2023.

The leading companies in the global life sciences BPO market are Boehringer Ingelheim GmbH, Cognizant Technology Solutions, International Business Machines Corporation, Quintiles Transnational Corporation, Anthelio Healthcare Solutions, and Parexel International Corporation. It is estimated that the presence of several companies in the market is likely to make the market highly competitive.

High Prevalence of Diseases Worldwide Escalates Demand in the Market

The global life sciences BPO market is estimated to be driven by the rise in the prevalence of different diseases. Use of medical devices and drugs is likely to be impacted by the expanding pool of geriatric population and high prevalence of many diseases in the near future. It takes a huge amount of money and time to introduce a new drug in the market. Hence, several pharmaceutical companies opt for outsourcing their strategic as well as non-strategic processes to third parties. Such moves by the pharmaceutical companies are being made to ensure improved quality of product, more profitability, and optimize return on investment.

The promising growth of the global life sciences BPO market is ascribed to the increased demand for contract manufacturing medical devices, pre-clinical and clinical trial services, raw materials, pharmocovigilance services, drug discovery services, finished dosage forms (FDFs), and regulatory services.

The expanding pool of geriatric population together with increased prevalence of different chronic diseases is forecasted to augment the burden of healthcare system. These factors are also fuelling the requirement for new devices and drugs. This is, in turn, expected to boost the global life sciences BPO market over the period of review.

Rapid Adoption of Advanced Technologies to Drive North America Market

North America is prophesized to account for a sizeable share of the global life sciences BPO market due to increased marketing expenses, utilization of data analytics and data processing services, and augmented healthcare-related expenses. Furthermore, increased cost of device and drug manufacturing is another growth promoting factor for the market. Besides, presence of several medical device manufacturing, pharmaceuticals, life sciences, and biotech organizations in North America is likely to support growth of the global life sciences BPO market in the years to come.

Asia Pacific is another region that is likely to rise to prominence registering a double digit growth over the timeframe of assessment. Driven by the presence of most of the active pharmaceutical ingredient (API) and increased export of finished products worldwide from China and India, the region is likely to thrive over the period of review.