Introduction

The healthcare industry is witnessing unprecedented churn and transformation, leading to a surge in the adoption of IT and business process outsourcing. Driven by regulatory reforms, tenets of consumerization, market consolidation, and emergence of next-generation digital avenues, acceptance of outsourcing has accelerated in this space. The life sciences industry has been plagued with multi-faceted challenges such as stifling R&D efficiency, changing portfolio mix, and increasing M&A/restructuring. The European life sciences market has particularly witnessed increased regulatory scrutiny, large scale restructuring efforts, and spike in real-world, evidence-based, personalized medicine, and outcome-based methods. These initiatives call for increased implementation of analytics, infrastructure outsourcing, and legacy modernization tenets. In order to cater to this growing market, a number of service providers have developed focused capabilities and ramped up delivery presence in the market.

With companies stepping up adoption of outsourced delivery, there is an uptick in demand for relevant research and market intelligence on demand and supply trends in healthcare outsourcing across each subvertical – payer, provider, and life sciences. The need is more pronounced for the vertical-specific IT outsourcing function, where business challenges are driving greater adoption. Everest Group’s healthcare outsourcing research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to ITO in the life sciences vertical.

In this report, we analyze the capabilities of 15 leading ITO service providers specific to the European life sciences sector. These service providers are mapped on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to a service provider’s capability and market success.

Scope of the analysis

• Industry: Life sciences (pharmaceuticals, biotechnology, and medical devices)
• Services: Large (TCV >US$25 million), multi-year (>three years), and annuity-based application outsourcing
• Geography: Europe (including United Kingdom)
• Sourcing model: Third-party ITO transactions; excludes shared services or captives

Contents

This report is structured across three key sections, each containing insights on the European life sciences ITO service provider landscape, with a specific focus on large-sized contracts:

• European life sciences ITO service provider landscape: Analysis of individual service provider capabilities in the life sciences ITO space along the following dimensions:
• Delivery capability:
• Scale
• Scope
• Domain investments
• Market success:
• Transaction activity
• Drivers of European life sciences ITO spending
• 2014 European life sciences ITO PEAK Matrix and analysis of PEAK clusters:
• Mapping of life sciences ITO service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix
• Commentary on the capabilities of each service provider:
• Delivery capability characteristics (scale, scope, and domain investments)
• Market success characteristics (transaction activity)
• Implications for key stakeholders: Implications of identified European life sciences ITO service provider landscape characteristics for key stakeholders:
• Implications for service providers
• Implications for buyers

Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.