Outsourcing to grow in life sciences industry

Source: Boston.bizjournals.com

The life sciences industry will see much more outsourcing overseas and domestically in 2008 as it focuses on reducing expenses to keep expanding, according to a new report.

Both pharmaceutical giants and emerging biotechnology companies will likely rely on the practice for everything from research and development to clinical trials and manufacturing, according to IDC's Health Industry Insights in Framingham, Mass. The conclusion is one of the firm's many predictions for the industry in 2008.

Singapore is among ideal places for outsourcing, according to the report, because the country has strong intellectual property protections and has dedicated significant investment into creating a large biotechnology industry presence.

India is also seen as an increasingly viable alternative for research and development outsourcing through lower-cost resources and trained researchers who could work in the country at a fraction of the cost.

China has been slow to attract life sciences investment due to concerns about intellectual property, according to the report, but the company has attracted many international companies seeking to outsource clinical trials or take advantage of the company's emerging domestic market.