IT Outsourcing (ITO) in the Life Sciences Industry - Annual Report 2013: IT is the Trump Card for Life Sciences

10 Oct 2013
by Abhishek Singh, Jimit Arora, Nitish Mittal



The life sciences industry has seen of a lot of challenges lately from the perspective of the patent cliff, falling drug approval, and the intense competition in the generics market. It has become a no-brainer for life sciences firms, especially pharmaceutical firms, to adopt analytics, ERP services, and digitization to enable all or most of their strategic initiatives.

With life sciences companies stepping up adoption of the outsourced delivery, there is an uptick in demand for research and market intelligence on demand and supply trends in outsourcing. The need is more pronounced for the value-chain-specific IT Outsourcing (ITO) services, where business challenges at functional levels are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to ITO in the life sciences value chain.

In this annual report, we analyze current trends and the future outlook for large, multi-year ITO relationships for the life sciences market. The report also provides specific insights into the need for value-chain-driven IT adoption.

Life sciences ITO activity


  • Industry: Life sciences (pharmaceutical, bio-technology, medical devices, etc.)
  • Services: Annuity-based application and infrastructure outsourcing services
  • Geography: Global
  • Sourcing model: Third-party AO and IO transactions; excludes shared services or captives

Strategic sourcing implications across the life sciences value chain


This report is structured across four key sections, each containing insights on the life sciences ITO market, with a focus on large-sized contracts:

  • Healthcare IT outsourcing market overview: Analysis of the overall healthcare outsourcing market and transaction trends:
    • Market size and growth
    • Transaction trends for IT outsourcing in healthcare
    • Segment-level analysis of healthcare outsourcing transactions, including:
      • Business segments: healthcare payer, provider, and life sciences
      • Function segments: AO and Infrastructure Outsourcing (IO)
      • Geographic segments
  • Life sciences ITO market overview: Analysis specific to the life sciences ITO segment with a focus on large transactions:
    • Transactions activity and growth trends
    • Demand characteristics for life sciences ITO services by geography, ITO subfunctions, buyer type (public and private health plans), and buyer size
    • Delivery trends for life sciences ITO services, including offshore leverage and global delivery locations
    • Renewal activity
  • Emerging themes and future outlook in life sciences ITO: Analysis of emerging trends and their influence on the future of life sciences ITO
    • Changing shape of the overall life sciences industry
    • Factors altering the demand profile for life sciences ITO services
    • Major technology investment themes in the life sciences sector
  • Outlook for 2013-2013: Analysis of the outlook and implications for ITO for the coming year
    • Outlook for overall healthcare IT outsourcing
    • Outlook for life sciences IT outsourcing

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