Offshoring in the Pharmaceutical Industry

Abstract

Offshoring has been adopted as a tool for reducing costs and for gaining strategic advantages by financial services, software development, and other competitive industries. For a variety of reasons, the pharmaceutical industry has been slow to take advantage of the benefits that offshoring can provide. The purpose of this article is to explore the internal and exogenous factors motivating global pharmaceutical firms to increase and expand their sourcing activities. And, instead of discussing global sourcing in general, India has been analyzed as a unique and explanatory case study for this new, emerging trend. The reasons behind this decision include India’s position as a renowned global IT hub, the country’s “home grown” biotechnology and biopharmaceutical industries, the numerous strategic partnerships and offshoring relationships between global and Indian firms, as well as its significant advances in IT and information management.