Bioinformatics Outsourcing for Life Sciences

– A report by ValueNotes in collaboration with KnowGenix (published Dec. 2007)

Bioinformatics can be defined as the application of information sciences to biology. The need for bioinformatics arises in every stage of the pharmaceutical drug discovery and development process. Increasing cost and timelines for developing a new drug and lower R&D productivity have compelled global research companies to cut costs and time. Further, huge amounts of data are being generated as many genomes (besides the human genome) are being sequenced. Handling, storage, retrieval and analysis of this data for use in new drug discovery and development have necessitated the emergence of sophisticated bioinformatics tools and services.

The offshoring of bioinformatics services to India has been driven by the growing demand for biotechnology products, India’s rich biodiversity driving its clinical trials industry, a strong base for pharmaceutical research and development and IT services, and well-educated low cost English speaking human capital. Government initiatives through establishment of public sector infrastructure and research labs are supporting India’s goal to emerge as a significant participant in the global bioinformatics industry. India’s entry into the product patent regime in 2005 has further boosted the confidence of buyers to outsource bioinformatics services to India. However, ambiguity of data security laws could hamper India’s growth going forward.

The Indian bioinformatics vendor space comprises pure play bioinformatics service providers, multinationals and IT companies servicing the life sciences vertical. Pharma and biotech CRAMS players have also started offering informatics services. Indian vendors offer integrated bioinformatics solutions such as biological and chemical databases, data analysis, data mining, bio-medical text mining and customized tool development among others.

The ValueNotes / KnowGenix report forecasts that the Indian bioinformatics services outsourcing opportunity is expected to grow at a CAGR of 25% rising from USD 32 million in 2007 to USD 62 million by 2010. This opportunity ranges from LIMS, enterprise solutions, improved database utility, data management tools, to exportable software that can be shared. However, to capture this opportunity, vendors need to establish credibility through success of past projects, by demonstrating a strong technical capability, establishing strong overseas relationships, and training end users in the use of bioinformatics tools.

About ValueNotes
ValueNotes Database is a leading provider of business intelligence and research, with expertise across selected domains and types of customer needs. Working with clients across the globe we have significant understanding of international markets.

The ValueNotes Outsourcing Practice is one of the largest information providers on the outsourcing industry. Our Outsourcing Practice uses a comprehensive, analytical framework providing fresh insights into the fast emerging and yet, complex outsourcing space. We extensively track the outsourcing space in-depth through a regular analysis of news and events and continuous primary research and contact with the industry.

ValueNotes Database
301, Venus Point, 1226/1 Off F.C. Road, Pune – 411004, INDIA
Tel: +91 20 66010423/24

About KnowGenix
KnowGenix is a business research and growth strategy service provider with chemicals, materials and energy practices. The firm researches business and technology trends in oil, gas, petrochemicals, fine, speciality and life science chemical value chains besides materials and energy. It assists global clients with research and growth strategy services through its international alliances.

C/o Chemical Weekly, B-602, Godrej Coliseum
K.J. Somaiya Hospital Road, Sion (East),
Mumbai 400022
Tel: 91-22-2404 4477

Latest Columns

LPO market in India to grow 27.7% over the period 2010

March 13, 2012: According to a report published by TechNavio, the Legal Process Outsourcing industry (LPO) in India is expected to grow at a compound annual growth rate of 27.7 per cent, during 2010-2014. The most important factor that will aid in the growth of the industry is the favorable government policies. There is also […]

What made GM to cut down IT offshore contracts?

It was a shock for the outsourcing industry when General Motors announced its decision to move out from IT outsourcing. Earlier this July, the US car maker announced their plans to reduce IT outsourcing to 10% from the current 90% under the leadership of their new CIO Randy Mott who joined GM this February.  Some […]

Speak Your Mind