Introduction

The healthcare and life sciences (HLS) landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, and “anytime-anywhere” information access). This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies and, at the same time, revamp their existing systems, processes, and interfaces. The digital play has moved from being a “nice-to-have” to a “necessary to survive and thrive” requirement in the modern age.

As the technology mandate for HLS enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT across the three major market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to HLS IT.

In this report, we analyze the capabilities of 15 IT service providers specific to the global life sciences digital space. These service providers are mapped on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, which is a composite index of a range of distinct metrics related to a provider’s capability and market success.

Scope of the analysis

• Industry: Life sciences (pharmaceuticals, biotechnology, and medical devices)
• Services: Digital IT services
• Geography: Global
• Sourcing model: Third-party IT transactions; excludes shared services or Global In-house Centers (GICs)

Contents

This report is structured across four key sections, each capturing insights into the life sciences digital IT service provider landscape, with a specific focus on large-sized contracts:

• Digital in life sciences: Context is everything
• Drivers of digital adoption in life sciences
• Definition of digital services – avoiding the “catch-all” trap
• Digitization needs in the life sciences industry value chain
• Focus of life sciences buyers on digitization
• Life sciences digital IT service provider landscape: Analysis of individual service provider capabilities in the life sciences digital IT space along the following dimensions:
• Delivery capability:
• Scale
• Scope
• Domain investments
• Delivery footprint
• Innovation
• Buyer satisfaction
• Market success:
• Transaction activity
• Life sciences digital IT PEAK Matrix 2015 and analysis of PEAK clusters:
• Mapping of life sciences digital IT service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
• Commentary on the specific characteristics of PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants)
• Commentary on the capabilities of each service provider:
• Delivery capability characteristics (scale, scope, domain investments, delivery footprint, innovation, and buyer satisfaction)
• Market success characteristics (transaction activity)
• Implications for key stakeholders: Implications of the market dynamics and identified life sciences digital IT service provider landscape characteristics for key stakeholders:
• Implications for service providers
• Implications for buyers

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.