Indian Pharma Industry: The Outsourcing Hub
As the Pharma industry becomes increasingly competitive and is highly dependent on the expiration of patents on blockbuster drugs, it has become important for companies to exercise better control over their costs in order to retain profitability and growth.
Outsourcing has become a clear strategy for increasing profitability. It is helping companies to meet increasing demand for new drugs and focus on core competencies.
Since the market need is to move non-core processes to third-party service providers, India has been one of the leading preferred destinations in this area. India is addressing these outsourcing needs throughout the entire product life cycle. It offers several advantages for contract research outsourcing by pharma companies including process, analytical and research chemistry skills, GLP compliant R&D facilities and a large talent pool of scientists.
Outsourcing to India provides the advantage of a significant cost-benefit proposition in research and development with great savings and also financial strength and trained manpower. It is a favourable and skilful investment hub with suitable infrastructure and compliant manufacturing services.
India is not only a cost-competitive supplier, but also a high quality service provider of pharma products and services that provides various strategic advantages to the pharma companies. This is mainly due to recent growth of outsourcing partners who focus on their comprehensive service portfolio to fulfil specific tasks, help solve problems and improve overall efficiency and productivity. They ensure that their performance is in tune with the customers’ needs.
Therefore, this partnership impacts the company’s bottom line by reducing capacity constraints and spending of capital and improving predictability of supply chain. In today’s scenario, engaging in an outsourcing solution is not just a tactical decision, but rather is considered a partner-driven strategic activity and India is playing a major beneficial role in it.