Today, outsourcing is applied to almost every aspect of a pharmaceutical company’s routine tasks and its implementation has been steadily rising. As a result, the current total global pharmaceutical outsourcing market is estimated to be worth about US$130.65bn, according to Research and Markets.1 In the past six years (2009–2014), the sector has been growing at a CAGR of around 9.4%; the market is expected to record a CAGR of 8.7% in the next six years (2015–2020) and may reach as much as $215bn by 2020, the company says.
Cost pressures are greater than ever and the need to focus on developing more efficient drugs more cost effectively is the key driver for the outsourcing strategy of most multinationals. As a result there has been greater use of third-party service providers in both operational and strategic process areas, such as R&D and sales and marketing for branded and generic products. The greatest increase, however, has been seen in the biopharmaceutical sector. As the global financial situation has experienced greater stability, venture capital funding has become more readily available to biotech companies, which in turn has boosted demand for outsourcing within the sector.
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