Introduction

The Healthcare and Life Sciences (HLS) industry 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 the emergence of mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels). This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces.

As the technology mandate for HLS enterprises evolves, so does their relationships with their IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT services 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 IT services in the healthcare and life sciences vertical.

In this report, we analyze the capabilities of 22 IT service providers specific to the global life sciences sector. 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. We focus on:

• IT application market trends in life sciences
• The landscape of service providers for life sciences IT application services
• Assessment of the service providers on a number of capability-related dimensions
• Implications for life sciences IT application buyers and service providers

Scope of the analysis

• Industry: Life sciences (pharmaceuticals, biotechnology, and medical devices)
• Services: Multi-year and annuity-based application services
• Geography: Global
• Sourcing model: Third-party ITO transactions; excludes shared services or Global In-house Centers (GICs)

Contents

This report is structured across three key sections, each containing insights into the life sciences IT applications service provider landscape:

• Executive summary
• Summary of key messages
• Key takeaway: Buyer feedback for service providers
• Implications for key stakeholders
• Life sciences IT application services market trends
• Performance | Experience | Ability | Knowledge (PEAK) Matrix for life sciences IT application services
• Mapping of life sciences IT application service providers on the Everest Group PEAK Matrix
• Analysis of individual service provider capabilities in the life sciences IT application services space along the following dimensions:
• Delivery capability
• Scale
• Scope
• Domain investments and innovation
• Delivery footprint
• Buyer satisfaction
• Market success
• Commentary on the specific characteristics of PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants)
• Profiles of life sciences IT application service providers covering the following aspects:
• General overview of the provider’s life sciences IT application services business – scale, overall focus, and extent of adoption of the provider’s life sciences IT application services business across enterprise segments and geographies
• Overview of the provider’s life sciences IT application services business – overall portfolio of services and relative focus across service lines
• Assessment of the provider’s life sciences IT application services delivery capability, domain investments & innovation, key solutions, and key partnerships
• Strategic focus areas and market success for life sciences IT application service areas