Outsourcing trends 'to define future of European bioinformatics market'

Consultancy Frost & Sullivan has released a new report on the bioinformatics markets.

The report states that bioinformatics will increasingly become a necessity for a wide spectrum of life sciences, pharmaceutical and biotechnology companies. As the number of market participants increases, purchasers will have an edge as the range of available tools expands.

To succeed, market participants will need to offer cost-effective, easy-to-use and more widely applicable solutions. Outsourcing is expected to emerge as a definitive trend in the bioinformatics industry, Frost says.

'The bioinformatics market is positioned to achieve its maximum potential over the next three to seven years because biotechnology companies with bio-informatics operations, software firms in bioinformatics as well as core computer hardware, peripherals and IT companies will diversify into this area and make concerted efforts in order to realise its full value,' observes Frost & Sullivan research analyst Sumitha Kannan.

'However, as competition intensifies, strategic partnerships and outsourcing will be the business models that will ensure success,' Kannan added.

One of the major challenges in the market will be to achieve cost competitiveness, while simultaneously providing customised solutions. Developing higher flexibility and ease of use in software tools involves longer and more expensive development life cycles.

To overcome competition from new entrants, incumbents need to introduce new technologies or improve existing products to meet evolving needs, the study suggests. Providing more product features will also help market participants make competitive gains.