Life Sciences BPO Market is projected to Attain at aCAGR of 8.9% from 2015 to 2023
The global life sciences BPO market features a largely competitive vendor landscape with a large number of contract manufacturing organizations (CMOs) and contract research organizations (CROs) competing for business from life science companies, observes Transparency Market Research in a recent report. In order to survive the stiff competition, leading companies such as Cognizant Technology Solutions, Accenture plc, and Infosys Limited are resorting to offering bundled end-to-end business solutions and services to clients.
Transparency Market Research estimates that the global market for life sciences BPO will exhibit a CAGR of 8.9% from 2015 to 2023, rising from a valuation of US$127.4 bn in 2014 to an opportunity of US$286.3 bn by 2023.
North America to Maintain Dominant Position
In terms of services, the pharmaceutical outsourcing segment holds a massive share in the overall revenue of the global life sciences BPO market. The contract manufacturing outsourcing arm of the pharmaceutical outsourcing segment presently holds a lion’s share in the revenue of the global market and is expected to remain the chief contributor of revenue to the market over the forecast period as well.
Increased Focus of Pharma Companies on Core Competencies Open Up Ample Opportunities for BPO Service Providers
The global pharmaceutical industry is presently going through a rough patch in terms of productive outcome from research and development activities, withering product pipelines, and the healthcare budget cuts from governments. Moreover, a number of blockbuster drugs across numerous profitable categories are facing patent expiries, allowing cheap and effective generic drugs to take over the larger marketplace. These concerns have turned the focus of pharmaceutical companies on their core competencies, requiring them to outsource a variety of non-core activities.
Moreover, the increased attention on the development of orphan drugs as a way to acquire opportunities in uninvaded market areas is also compelling companies to outsource services to CMOs. The rising number of companies pursuing growth opportunities in the field of orphan diseases has raised the amount of work available for service providers, hence fueling the market for life sciences BPO services.