Tag: pharmaceutical

Why Pharma Companies View their Indian Shared Services Centers as Growth Partners |Blog

India is clearly becoming the “it” destination for pharmaceutical companies’ shared services centers (SSC) – or Global In-House Center (GIC) – organizations. Why do we say this? Because global pharmas with headquarters in the U.S. and Europe employ more than 11,000 FTEs employees in their India-based shared services centers to deliver not only table stakes transactional finance and HR services but also highly complex processes across all stages of drug development, including drug R&D and clinical trials.

What’s India’s appeal? There are four factors.

Established/Mature Location for Global Pharma Services Delivery

India is a time-tested, proven GIC destination for a wide range of industries. Many of the world’s leading pharmaceutical companies started delivering their global services support operations from India back in early 1990s. Now, pharma majors like AstraZeneca, Eli Lilly, and Novartis are delivering complex, judgment-intensive services such as product R&D, biostatistics, and clinical trials site management from their India GICs. Hyderabad, Chennai, and Bangalore are the preferred locations, housing more than 80 percent of the pharmaceutical GIC talent.

Skilled Talent Pool

Talent availability, at scale, is one of India’s strongest value propositions. In recent years, many pharma companies have been able to successfully scale their delivery teams supporting diverse functions such as R&D, commercials, IT, and finance. For example, a leading pharma GIC houses 2,000+ resources providing IT services for various pharma functions. And multiple other pharma SSCs have scaled teams (400+ resources) that support R&D services, and dedicated resource groups comprised of doctors, PhDs, and biostatisticians, for complex drug R&D processes like development of computational solutions for analyzing clinical trials.

Opportunities for Cross-functional Collaboration

India’s availability of diverse talent profiles at scale allows India-based pharma SSCs to support multiple functions. And because many of them house IT resources with R&D and commercial business teams, they have multiple opportunities to collaborate on and insource IT work for drug R&D (e.g., to build IT platforms for drug development and IT services for lab support), and commercial operations (e.g., IT services for finance.) The value of this collaboration? Tighter integration of functions, better understanding of business requirements, and faster execution.

Mature Market for Digital Services Delivery

Leading India-based pharma GICs are working on digital initiatives including analytics and automation, and some are serving as global automation CoEs for their parent enterprises. Many are developing analytical tools for marketing & sales operations, competitive intelligence, and incentive planning. They are also investing heavily in automating less complex and high-volume transactional processes such as expense management, purchase order creation, offer letter generation, résumé screening, and management reporting, and deploying RPA bots to read files, extract data, and report adverse events. As part of the broader digital agenda, some centers have also started exploring the uses of artificial intelligence/machine learning to recruit patients and select sites for clinical trials, and for channel sequencing and optimization in their enterprise’s sales & marketing function.

Going forward, pharma companies not only expect their India SSCs to grow in scale and expand the scope of their process delivery, but also play a significant role in their digital transformation journeys by leading initiatives across all stages of the product R&D lifecycle. To satisfy these expectations, the GICs need to build deep domain capabilities and acquire or train talent to deliver increasingly complex, higher up the value chain services and next-generation digital initiatives.

To learn more about why pharma companies consider India their preferred service delivery destination, please read our recently published report, “Healthcare and Life Sciences – GICs in India Fast-tracking Enterprises’ Digital Agenda,” or connect directly with the report authors Anish Agarwal, Bharath M, and Rajeshwaran Pagalam.

Life Sciences Companies, Lagging In Tech Adoption, Can Leap Ahead with a DevOps Approach—Everest Group | Press Release

AstraZeneca, MediVector case studies illustrate two of many potential applications of DevOps in pharmaceutical value chain.

The pharmaceutical sector, which typically lags behind other industries in technology adoption, is crying out for change as its IT organization is unable to reform itself fast enough to deal with an increase in drug safety breaches and slow time to market for both products and business solutions. Everest Group maintains that pharmaceutical companies can address these challenges by employing DevOps—a methodology successfully implemented in the software industry to respond to fluctuating demands, provide a better customer experience and reduce time to market.

Potential DevOps use cases abound across the pharmaceutical value chain: drug discovery and research, clinical and pre-clinical trials, manufacturing operations, sales and marketing, and supply chain management and distribution are just a few examples.

As illustration, Everest Group points to two successful DevOps implementations:

  • AstraZeneca achieved improved quality, significantly faster time to value delivery (a 40 to 60 percent improvement) and reduced team sizes, which in turn resulted in a 25 to 40 percent cost reduction.
  • Similarly, MediVector successfully applied a DevOps approach to rectify slow quality assurance audits of the machines used in the drug development process.

Everest Group cautions, however, that although a wide variety of DevOps use cases are feasible, pharmaceutical companies should prioritize their DevOps investments based on potential business impact and ease of implementation.

These findings and more are discussed in a recently published Everest Group report, “Life Sciences Annual Report 2018: Pharma’s DevOps Factor for Digital Transformation.” This report takes a look at the concept of DevOps, puts forward a number of DevOps use cases across the pharmaceutical value chain and evaluates each to decide which is the most suited for implementation if progressive business impact is to be realized. The report also lays out a three-stage future implementation roadmap for pharmaceutical enterprises.

Across many industries, the adoption of DevOps is being linked directly to time to market and customer centricity,” said Abhishek Singh, practice director at Everest Group. “As Astra Zeneca and MediVector cases exemplify, the time seems ripe for pharmaceutical companies to make DevOps their next big bet. Indeed, most pharma firms are currently looking to experiment with DevOps, with a long-term goal of enterprise-wide DevOps-enabled digital transformation.”

Additional Key Findings:

  • Technology aspects, such as automation and cloud computing, coupled with softer aspects, such as a cross-functional organizational structure and an agile working culture, can drive DevOps enablement.
  • The success of DevOps initiatives in modern enterprises hinges on three pillars: a culture of trust, accountability and shared responsibility; standardization of pocketed adoption and consolidation of tools and technologies; and hybridization of the enterprise portfolio across legacy systems and modern DevOps-enabled applications.
  • DevOps adoption is particularly favorable for industries that suffer from frequently changing market demands, high time to market, poor customer experiences and inefficient operations. Conversely, DevOps adoption is unfavorable for industries that are heavily regulated or have mammoth organizational size, a complex stakeholder environment, or a mandate for cost minimization.
  • Service providers can help enterprises in their DevOps journey by devising roadmaps, aiding with change management and providing the necessary technology support.

***Download a complementary report abstract.***

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