Third-Party Outsourcing of IT Services on the Rise

Jul 29, 2010

A new report from the International Data Corporation (IDC) shows that life-science companies are increasingly using third-party outsourcing firms to augment or replace their information-technology (IT) services. IDC is a global provider of market intelligence, advisory services, and events for the IT, telecommunications, and consumer-technology markets and is based in Framingham, Massachusetts.

The new report, Vendor Asssessment: Life Science Buyers Guide to Manufacturing and Supply Chain IT Outsourcing, is published by the IDC Health Insights division and also states that companies are likely to continue to expand spending on third-party IT services in the year ahead. “Industry sentiment and adoption trends all point to continued growth in IT outsourcing between 4–6% over the next 12–18 months, followed by moderate growth of approximately 4% annually for the next 2 to 3 years,” says a press release about the new report.

"With the global recession now in the rear-view mirror, life science companies are slowly shifting their primary cost-cutting focus back toward long-term top-line growth," said Eric Newmark, research manager with IDC Health Insights, in the press release. "Manufacturing and supply-chain strategies not only remain a critical component of maintaining lower-costs, but also hold the key to reducing corporate liability, protecting brand equity, and optimizing operational efficiency."

The study results show that 63% of pharmaceutical companies outsource some aspect of manufacturing or supply-chain-related IT; that percentage is up from 48% just two years ago. Of the 63% of companies that do outsource IT services, approximately 18% outsource to only US-based firms, 4% use offshore firms, and 41% use both.

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