INTRODUCTION

The healthcare industry witnessed a rapid increase in the IT and business process outsourcing adoption in recent years. Regulatory reform, consumerization of healthcare, market consolidation, and emergence of new technologies accelerated outsourcing in the healthcare market. In order to cater to this growing market segment, a number and variety of service providers have developed capabilities.

With healthcare companies stepping up adoption of outsourced delivery, there is an uptick in demand for research and market intelligence on demand and supply trends in healthcare outsourcing, across the three major market segments – payer, provider, and life sciences. The need is more pronounced for the vertical-specific application outsourcing (AO) function, where business challenges 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 IT AO in the healthcare vertical.

In this report, we analyze the capabilities of 14 AO service providers specific to the global life sciences sector. These service providers are mapped on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to a service provider’s capability and market success.

Scope of the analysis

• Industry: Life sciences (pharmaceuticals, medical devices, biotechnology, and other life sciences)
• Services: Large (TCV >US$25 million), multi-year (>three years), and annuity-based application outsourcing
• Geography: Global
• Sourcing model: Third-party AO transactions; excludes shared services or captives

CONTENTS

This report is structured across five key sections, each containing insights on the life sciences AO service provider landscape, with a specific focus on large-sized contracts:

• Life sciences AO service provider landscape: Analysis of three groups of service providers – “Global majors”, “Offshore majors”, and “Regional/tier-2 players”, for their capabilities in the life sciences AO space along the following dimensions:
  • Delivery capability:
    • Scale
    • Scope
    • Domain investments
    • Delivery footprint
  • Market success:
    • Transaction activity
• PEAK Matrix for life sciences AO: Mapping of life sciences AO service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix, with commentary on the capabilities of each service provider in terms of:
  • Delivery capability (scale, scope, domain investments, and delivery footprint)
  • Market success (transaction activity)
• Life sciences AO PEAK characteristics: Analysis of the three service provider categories on PEAK Matrix – “Leaders”, “Major Contenders”, and “Emerging Players”, across three themes:
  • Market share and scale
  • Scope characteristics
  • Delivery footprint
• Implications for key stakeholders: Implications of the identified life sciences AO service provider landscape characteristics for key stakeholders:
  • Implications for buyers
  • Implications for service providers
• PEAK life sciences AO service provider profiles: Detailed profiles containing the following information for each of the 14 service providers featuring on the life sciences AO PEAK Matrix:
  • Corporate summary and life sciences AO business overview
  • Detailed assessment of life sciences AO capabilities
  • Healthcare and life sciences AO domain investments
  • Life sciences AO transaction activity
  • Key offshore delivery locations for life sciences AO