Magazine Article | January 7, 2014

2014 Trends In Strategic Outsourcing – Changes In Partner Selection

Source: Life Science Leader

By Kate Hammeke, director of marketing intelligence, Nice Insight

The 2014 results from Nice Insight’s annual pharmaceutical and biotechnology outsourcing survey show positive news for both sides of outsourcing relationships. Just as there was an increase from 2012 to 2013 (up 7 percent, from 31 percent to 38 percent) in respondents with an outsourcing expenditure between $10M to $50M, there was another 9 percent increase in this expenditure bracket for the year ahead. Slightly under half of all survey respondents (47 percent) stated they will spend between $10M and $50M on outsourced projects in 2014. The respondent group who will spend less than $10M on outsourced projects continues to shrink, now comprising only 29 percent of respondents. One key difference in this increase in expenditure over the 2012-2013 change was that respondents indicated they would outsource a greater number of different services — up from 4.7 on average in 2013 to 6.4 in 2014.