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The life sciences industry encompasses pharmaceutical, medical device and biotechnology companies focused on researching, developing, manufacturing and marketing drugs, vaccines, medical imaging equipment and biologics to improve health and quality of life. These companies increasingly outsource non-core business functions such as drug discovery, preclinical and clinical development and manufacturing in order to focus internal resources on value added activities. Life sciences BPO providers offer expertise across various functional areas including regulatory affairs, medical writing, clinical trials management, quality control and analytics at lower costs. Outsourcing such functions enables life sciences companies to accelerate drug development timelines, gain access to specialized skills and expertise worldwide, contain operational costs and ensure compliance with regulatory standards.
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:
The key trend driving growth in the life sciences BPO market is the shift towards integrated service offerings. Earlier, life sciences companies outsourced individual functions like clinical data management or medical writing, however, they now prefer partnering with single providers offering end-to-end integrated services across the drug development value chain. This gives them flexibility to scale uptake of services as required. Leading BPO providers are thus investing heavily in offerings spanning multiple functional domains, advanced digital platforms and global delivery infrastructure. This enables them to act as strategic partners to life sciences clients managing complex drug portfolios globally. This integrated service approach is expected to significantly boost BPO adoption over the forecast period.
Porter’s Analysis
Threat of new entrants: Low-medium. Require significant investments in infrastructure, domain expertise and know-how.
Bargaining power of buyers: Medium-high. Large pharmaceutical companies can exert pricing pressure and demand additional services.
Bargaining power of suppliers: Medium. Presence of specialized capability providers and talent availability across regions.
Threat of new substitutes: Low-medium. Limited threat from alternative outsourcing models or insourcing due to established expertise of BPO players.
Competitive rivalry: High. Intense competition among BPO firms to gain multi-year contracts from global pharmaceutical companies.
Key Takeaways
The global Life Sciences BPO Market is expected to witness high growth. 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.
Regional analysis North America dominates the market currently due to presence of majority global pharmaceutical companies and medical devices manufacturers. However, Asia Pacific is expected to witness the fastest growth over the forecast period owing to favorable government policies, low-cost operations and rising R&D expenditure.
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. Accenture and Cognizant capture the highest market share due to their diversified service offerings and global presence across various countries. Charles River Laboratories also has a significant presence in the clinical research segment.
Major players are focusing on acquisitions and partnerships with regional players to leverage their expertise as well as expand their operations. For instance, in 2022 Charles River Laboratories acquired Anthropic to strengthen its clinical technologies capabilities and deliver end-to-end services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
