"The risk profile is critical because the external environment is
growing more risk averse while the changing nature of the business requires
the industry to, in fact, take on a lot more strategic and operating risk
to drive value," added Buck Luce.
Other key findings include:
-- Understanding wider issues: 32% of respondents feel that the CFO of
their organization does not have enough understanding of the wider
issues their business faces.
-- Cost reduction: More pharmaceutical respondents are considering
outsourcing and shared service models for certain internal functions
than those in other industries; 64% of respondents are currently
considering outsourcing certain internal functions as part of a
cost-reduction measure versus 46% of respondents from a cross-industry
- Respondents were least comfortable in outsourcing clinical trials
(36%), followed by sales and marketing (33%).
India's perspective on pharmaceutical finance
Similar to the changes on a global level, a survey of pharmaceutical CFOs in India, conducted by Ernst & Young, found that they foresee a change in their roles.
Within the survey, however, there were distinct differences in the
responses from CFOs of India-based subsidiaries of major multinational
pharmaceutical companies (MNC) compared to those from CFOs of
India-headquartered pharmaceutical companies (IPC). Most notably, human
resource challenges are more acute for MNC
|SOURCE Ernst & Young|
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