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The life sciences BPO market is a process that involves outsourcing non-core functions related to the life sciences industry. Services such as marketing and sales services, regulatory affairs services, clinical trial services, and pharmacovigilance services are commonly outsourced to BPO service providers. These service providers help life sciences companies reduce costs and focus on their core competencies. Common outsourced functions include clinical data management, medical writing, regulatory publishing and submission services, and patient recruitment for clinical trials.
The global life sciences BPO Market is estimated to be valued at US$ 222.9 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The increasing outsourcing of non-core functions by life sciences companies and focus on reducing operational costs are expected to drive the growth of the life sciences BPO market over the forecast period. As highlighted in the heading, the outsourcing of non-core operations to specialized BPO service providers allows life sciences companies to focus on core competencies like research and drug development. This helps improve efficiency and reduce costs associated with non-core functions. Additionally, better management of clinical trials, regulatory processes, and medical records through outsourcing streamlines operations and ensures compliance with regulatory standards, thus supporting market growth.
Segment Analysis
The life sciences BPO market can be segmented by type into contract research organizations, contract manufacturing organizations, and contract sales and marketing organizations. Among these, the contract research organizations subsegment accounts for the largest share of over 50% of the overall market. This subsegment dominates the market as most pharmaceutical and biotechnology companies outsource non-core research activities like clinical trials to CROs in order to focus on their core competencies of drug development and manufacturing.
PEST Analysis
Political: The market is driven by government regulations and incentives related to healthcare and pharma outsourcing. Stringent norms around clinical trial protocols and drug approvals influence outsourcing demand.
Economic: Cost-cutting pressures on pharma companies from patent expiries and rising R&D costs encourage outsourcing of non-core functions to optimize spending.
Social: Rising lifestyle diseases and an aging population drive demand for new drugs and healthcare innovations. This increases clinical trial activity and demand for related outsourced services.
Technological: Adoption of digital technologies like AI, cloud and analytics enable remote and virtual clinical trials, driving increased adoption of specialized capabilities from BPO service providers.
Key Takeaways
The global life sciences BPO market is expected to witness high growth over the forecast period of 2023 to 2030. The global life sciences BPO Market is estimated to be valued at US$ 222.9 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
Regionally, North America is expected to dominate the market owing to the presence of major pharmaceutical companies in the US and Canada actively outsourcing R&D and manufacturing activities.
Key players operating in the life sciences BPO market are Accenture, Plc., Boehringer Ingelheim GmbH, Charles River Laboratories International, Inc., Cognizant Technology Solutions, Covance, Inc., DSM, Fareva, ICON, Plc, Infosys, Catalent, Inc., Genpact Limited, Health Decisions, Inc., and ProMab Biotechnologies, Inc. Key players are focusing on enhancing their specialized clinical research and analytics capabilities through inorganic growth strategies to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
