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The Life Sciences BPO Market includes various product and service types such as contract research organizations (CROs) services; contract manufacturing services; and contract sales and marketing services. These outsourced services help reduce operational costs for life sciences companies and allow them to focus more on their core competencies.
The global Life Sciences BPO Market is estimated to be valued at US$ 222.9 Bn or Mn 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
One of the major trends driving the growth of the Life Sciences BPO Market is the rising research and development expenditures in pharmaceutical and biotechnology industries. According to the Pharmaceutical Research and Manufacturers of America, pharmaceutical companies invested nearly USD 79.6 billion in R&D in 2018, an increase of 3.5% from the previous year. To offset these high R&D costs, life sciences companies are increasingly outsourcing their non-core functions to specialized BPO service providers, thereby fueling the market growth. Moreover, outsourcing non-core activities allows companies to focus more on drug discovery and commercialization activities, leading to the development of new medicines at a faster pace.
SWOT Analysis
Strength: The life sciences BPO market provides cost effective and efficient outsourcing solutions for clinical trials, regulatory and non-clinical functions. This helps companies focus on core areas of business.
Weakness: Outsourcing of critical functions like clinical trials can pose risks related to loss of control and confidentiality of sensitive data. Collaboration issues can also arise between CROs and sponsor companies.
Opportunity: Growing R&D expenditure of pharmaceutical and biotech companies on drug development is driving increased demand for specialized outsourcing services. Emerging domains like artificial intelligence also present new opportunities.
Threats: Stringent regulations associated with drug development increase compliance requirements for service providers. Intense competition among various CROs can lead to pricing pressures.
Key Takeaways
The global life sciences BPO market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing R&D expenditure of pharma and biotech companies.
Regional analysis: North America is currently the largest as well as the most advanced market for life sciences BPO, driven by presence of majority of global pharmaceutical companies. Asia Pacific is expected to be the fastest growing market, supported by availability of low-cost skilled resources and increasing offshore activities by Western companies.
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. Some leading players are focusing on strategic acquisitions to expand their service offerings and geographic footprint in high growth markets.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
