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The industry is expected to grow at 25 percent CAGR until 2010...
A joint publication by ValueNotes and KnowGenix
Published December 2007
*The report is sent in PDF format and e-mailed within one working day after purchase.
Research companies around the world now feel the need for enormous computing and data management competencies to sequence and categorize data generated by drug-discovery labs. To facilitate the storage, management, retrieval, and analysis of this large-scale data, the application of IT to the life sciences sector - bioinformatics, assumes increasingly higher significance. The use of bioinformatics tools lowers costs, improves efficiency and reduces development-to-launch timelines. The drive to further reduce R&D costs by off-shoring to low cost destinations is fuelling the outsourcing of bioinformatics services from India. This report, based on a study conducted by ValueNotes and KnowGenix, examines the bioinformatics services outsourcing market in India for the life sciences space.
According to Arun Jethmalani, CEO, ValueNotes, "Outsourcing to India, compared to other developed countries, offers about 30-40% costs savings in overall drug discovery research, and close to 60% cost savings when outsourcing core bioinformatics services. This is owing to the lower wage costs for skilled manpower, and lower infrastructure costs."
ValueNotes estimates that India's bioinformatics services outsourcing revenues are about USD 32 million, and are expected to grow at a CAGR of 25% touching USD 62 million by 2010. India has emerged as an attractive destination for outsourcing bioinformatics services owing to availability of low cost English-speaking manpower, lower capital and operational costs, and its established success as an IT and pharma outsourcing hub. "Vendors, that lack international visibility for their products, are rapidly building service capabilities to capitalize on the India advantage. Pure play companies offer specialized services, IT companies offer services across the life sciences vertical while domestic life sciences companies are offering a complete research solution that includes bioinformatics services", says Dr Raj Rajagopal, CCO KnowGenix. The Indian vendor landscape for bioinformatics services outsourcing is made up of: - Pure bioinformatics companies like Strand Life Sciences, Molecular Connections, VLife Sciences Technologies
- Domestic IT companies like Infosys, HCL Technologies, TCS
- Domestic companies with focus on CRAMS like Jubilant Biosys, Avesthagen, GVK Biosciences
- Multinational IT companies like Mphasis, IBM India
- Multinational Pure bioinformatics companies like Cytogenomics, LabVantage
Going forward, we expect vendors to explore alliances or acquisitions to broaden their product/service portfolio, customer base, and geographical reach. Currently, vendors are actively seeking alliances that complement their core competencies and allow them to use emerging technologies in a mutually beneficial and cost competitive manner. Partnering strategies like licensing arrangements, marketing arrangements, and collaborative product development and research partnerships will be increasingly undertaken. According to Suchita Chaudhari, Senior Analyst at ValueNotes, "We believe companies offering an integrated services portfolio will enjoy an upper hand, compelling pure play vendors offering only discovery informatics to expand into clinical trials informatics, and / or life sciences research to remain competitive."
A critical success factor for India as a rising destination for outsourcing bioinformatics services is the availability of quality manpower. "India is facing a shortage of experienced bioinformatics professionals, which is resulting in higher attrition and rising wage levels. These in turn could reduce the cost competitiveness of India over her other counterparts in China, Brazil, Ireland, etc. Government and private initiatives to boost industry-academia interaction, and corporate training initiatives are a step in the right direction," believes Poonam Bhana, Analyst, ValueNotes
The report provides an overview of the buyer scenario and an in-depth analysis of the Indian vendor space along with profiles of major industry players. The report is designed to help: - Research companies looking to outsource/off-shore bioinformatics services
- Global biotechnology and pharmaceutical companies to gain understanding of the Indian bioinformatics vendor space
- Outsourcing consultants to evaluate and compare offerings of Indian bioinformatics vendors
- Potential vendors to assess opportunities in India
- Bioinformatics vendors to assess the competitive environment in India
- Venture capital companies looking for investment opportunities
- Researchers looking for detailed information on Bioinformatics services off-shoring to India
This study, by ValueNotes / KnowGenix, is based on extensive interviews with key bioinformatics vendors in India, supplemented with knowledge from secondary sources.
Table of Contents (Pages - 90) | 1. Executive Summary | 2. Definition and Role of Bioinformatics
2.1 Growing Demand for Biotechnology
2.2 Role of Bioinformatics
2.3 Customer Base
2.4 Bioinformatics Target Disciplines
2.5 Bioinformatics Market Segments
2.6 Bioinformatics Tools
| 3. Bioinformatics Market - Outsourcing Opportunity
3.1 Global Bioinformatics Market
3.2 Indian Bioinformatics Opportunity
3.3 India Advantage - Offshoring Drivers
3.4 Constraints to Offshoring to India
3.5 Indian Bioinformatics Industry - SWOT analysis
3.6 Comparative Country Analysis | 4. Indian Vendor Analysis
4.1 Indian Bioinformatics Industry Structure
4.2 Vendor Scenario
4.3 Vendor Analysis
4.4 Vendor Challenges
4.5 Availability of Funding
| 5. Projections, Trends and Insights
5.1 Projections
5.2 Business Models - Partnering the way to go
5.3 Impact of Technological Trends
5.4 Impact of Industry Trends
5.5 Opportunities for Vendors | 6. Vendor Profiles
6.1 Avestha Gengraine Technologies Pvt. Ltd.
6.2 GVK Biosciences Pvt. Ltd.
6.3 HCL Technologies
6.4 Infosys Technologies Ltd.
6.5 Jubilant Biosys Ltd.
6.6 LabVantage Solutions Pvt. Ltd.
6.7 Mphasis Ltd.
6.8 Ocimum Biosolutons Ltd.
6.9 Strand Life Sciences
6.10 Tata Consultancy Services Ltd.
6.11 Services Offerings of Select Vendors | 7. Appendix: Related Information
7.1 Non-Life Sciences Bioinformatics Customer Groups
7.2 Functions of the Biotechnology Information System Network (BTIS)
7.3 The Biotechnology Policy of India (BPI- 2004) | | 8. Vendor Directory | | 9. Research Methodology | 10. About ValueNotes
| | 11. About KnowGenix |
Table of Exhibits Exhibit 1: Definition of Bioinformatics
Exhibit 2: Drivers for Off-shoring of Bioinformatics
Exhibit 3: Projected Global Bioinformatics Market (2007-2010)
Exhibit 4: Projected Bioinformatics Off-shoring Market in India (2007-2010)
Exhibit 5: Vendor Segmentation
Exhibit 6: Vendor Category Specialization versus Bioinformatics as percentage of all Services
Exhibit 7: Likely Winners
Exhibit 8: Opportunities to Bioinformatics Vendors
Exhibit 9: Evolution of Bioinformatics
Exhibit 10: Life Science data + IT = Bioinformatics
Exhibit 11: Scope of Bioinformatics
Exhibit 12: Bioinformatics Industry Participants
Exhibit 13: Global Bioinformatics break-up by Target Disciplines
Exhibit 14: Bioinformatics - Demand and Supply side
Exhibit 15: Market Segments
Exhibit 16: Bioinformatics Software sub-disciplines
Exhibit 17: Global Bioinformatics Market (2004-2007)
Exhibit 18: Indian Biotech Industry Segments (2006-07)
Exhibit 19: Indian Biotech Industry Revenues
Exhibit 20: Indian Bioinformatics Market (2004-2007)
Exhibit 21: Indian Bioinformatics break-up by Target Disciplines
Exhibit 22: Indian Bioinformatics Outsourcing Opportunity
Exhibit 23: Select Outsourcing Deals
Exhibit 24: Drivers for Off-shoring of Bioinformatics
Exhibit 25: Tie-ups between Wet Labs and In-silico Labs
Exhibit 26: Growth of IT and Pharma Outsourcing
Exhibit 27: India Bioinformatics Landscape - SWOT Analysis
Exhibit 28: Relative Attractiveness by Country
Exhibit 29: Indian Bioinformatics Industry Structure
Exhibit 30: Locational Distribution of Bioinformatics Vendors
Exhibit 31: Vendor Segmentation
Exhibit 32: Revenue Share of Vendor Categories
Exhibit 33: SWOT Analysis of different Vendor Segments
Exhibit 34: Domestic Pure Play - Service Mapping
Exhibit 35: Domestic IT - Service Mapping
Exhibit 36: Domestic Life Sciences - Service Mapping
Exhibit 37: Multinationals - Service Mapping
Exhibit 38: Vendor Category Specialization versus Bioinformatics as percentage of all Services
Exhibit 39: Vendor Mapping based on Bioinformatics Services Focus and Specialization
Exhibit 40: Vendor Mapping based on Breadth of Services and Size of Bioinformatics Division
Exhibit 41: Likely Winners
Exhibit 42: Exchange Rate Fluctuations: INR - USD
Exhibit 43: Critical Success Factors
Exhibit 44: Select VC investments in Bioinformatics Companies
Exhibit 45: Global R&D Spend estimates
Exhibit 46: Projected Global Bioinformatics Market (2007-2010)
Exhibit 47: Projected Bioinformatics Off-shoring Market in India (2007-2010)
Exhibit 48: Partnering Models
Exhibit 49: Market Opportunity for LIMS
Exhibit 50: Opportunities to Bioinformatics Vendors
Exhibit 51: Bioinformatics Services and Applications by Vendor
Exhibit 52: Vendor Directory |
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ValueNotes’ research indicates that the domestic BPO industry stands at an inflection point, with the growing scale of Indian buyers as well as the emergence of significant vendors with greater capabilities