The bioinformatics market in India has faced many challenges over the years. However, this BPO industry has managed to sustain itself and has recorded a steady growth in the past couple of years. The bioinformatics outsourcing industry has proved to be a profitable business in many parts of the world. The advances in the field of biotechnology have generated a large volume of data that are vital to the creation of new drugs and methods of treatment. Human genome sequencing models that are cost-effective have led to an increase in the investment carried out in this sector in India.
The bioinformatics market in India recorded a Compound Annual Growth Rate (CAGR) of 15% at the start of 2000. The growth rate of this BPO industry went on the decline in 2007. The past few years have witnessed this market picking up and it has continued to register a steady growth since then. For the period 2011—2012, this field witnessed growth at the rate of 7% and accumulated a total of $55 million. During this period, the domestic revenue had increased considerably, which may be attributed to the success achieved in this phase of growth.
Trends that uplift bioinformatics market in India
A recent report from RNCOS, a leading consultancy and research company, states that the bioinformatics market in India has become a leading segment of the biotech BPO industry in recent years. This is in spite of the fact that it accounts for only 2% of the biotech sector. The report titled Indian Bioinformatics Market Forecast to 2015 predicts that by the fiscal year 2015, the bioinformatics market in India will attain a value of approximately US$ 140 million. The availability of sound infrastructure and skilled workers is likely to boost the prospects of this sector.
The latest trends that are likely to uplift the market include genomics, translational bioinformatics, and personalized medicine. In view of the changing trends in the bioinformatics market in India, many companies have based their operations in the BPO industry playing the role of integrated outsourcing associates. Other trends in this sector that offer unlimited opportunities include structural biology services, computer-assisted molecule discovery, and bio- and chemo-informatics. Companies such as Strand Life Sciences and Ocimum Biosolutions have established bases outside India such as the United States. Then again, as a result of an increase in the outsourcing of bioinformatics operations and due to the global financial crisis, they have been forced to change their strategies.
More thrust has to be given on the development of new drugs, which will benefit the bioinformatics market in India. The development of a new model of operations based on the latest trends will fortify this BPO industry in India.