Technology investments for life sciences buyers will be dictated by the dual mandate of leaner operations and patient-centricity, given the focus on core competence and consumerization of healthcare, respectively.
Dallas, Texas (PRWEB) July 08, 2015
Competition has intensified in the Life Sciences IT outsourcing (ITO) market as the technology needs of buyers continue to evolve. These new expectations are driven by the need of life sciences firms to control costs and improve R&D productivity while simultaneously expanding omnichannel services to patients.
“Technology investments for life sciences buyers will be dictated by the dual mandate of leaner operations and patient-centricity, given the focus on core competence and consumerization of healthcare, respectively,” said Abhishek Singh, practice director at Everest Group. “Service providers need to present a value chain solutions approach and embrace creative deal constructs to succeed in this new normal.”
Everest Group—a consulting and research firm focused on strategic IT, business services, and sourcing—reports that ITO buyers in the life sciences industry now expect service providers to assume greater ownership of technology engagements and bring innovation to the fore to deliver tangible value. In addition, life sciences firms increasingly expect service providers to deliver integrated services for attainment of specific business outcomes, irrespective of the service silos (e.g., infrastructure, applications or business processes) specified in the contractual agreement.
These findings and more are discussed in Everest Group’s recently released report, IT Outsourcing in Life Sciences Industry – Service Provider Landscape with PEAK Matrix™ Assessment 2015.
This Everest Group research provides a comprehensive assessment of the service delivery capabilities of 20 leading IT service providers serving the life sciences industry (including pharmaceuticals, biotechnology, medical devices, healthcare data and information services, and medical products distribution).
Everest Group identified as Leaders in the Life Sciences ITO market Accenture, Cognizant, HCL Technologies, IBM, Infosys, TCS and Wipro. Major Contenders comprise Capgemini, CGI, CSC, Dell Services, HP, IGATE, L&T Infotech, Tech Mahindra, and Wipro. Aspirants include EPAM, Fujitsu, Hexaware, Unisys and Virtusa. Two service providers—CGI and Cognizant—were recognized as Star Performers, based on significant year-over-year movement on the PEAK Matrix.
Implications for Buyers and Service Providers
Based on its assessment of the Life Sciences ITO market, Everest Group includes in this report six business strategy implications for buyers and six implications for service providers. For example, Everest Group recommends that buyers implement metrics-driven service level agreements (SLAs), shore up productivity levels and deploy next-generation technologies. Service providers are advised to adapt to newer deal constructs (e.g., as-a-service, integrated services, gain share) to exhibit more skin in the game.
About the PEAK Matrix™
The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, and sourcing. We are trusted advisors to senior executives of leading enterprises, providers, and investors. Our firm helps clients improve operational and financial performance through a hands-on process that supports them in making well-informed decisions that deliver high-impact results and achieve sustained value. Our insight and guidance empowers clients to improve organizational efficiency, effectiveness, agility and responsiveness. What sets Everest Group apart is the integration of deep sourcing knowledge, problem-solving skills and original research. Details and in-depth content are available at research.everestgrp.com.