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Structural Trends to Profoundly Change Life Sciences Industry, Genpact Study Shows
Date:4/24/2012

To meet the operational challenges they face in the current marketplace, life sciences companies have been taking a variety of approaches to retain capital availability and improve revenue performance, including a focus on growth in emerging markets, mergers and acquisitions, and cost-cutting measures. While these approaches have had some degree of success, the results have been mixed and will eventually fall prey to the law of diminishing returns.

Having noted the challenges, survey respondents overwhelmingly (88%) agreed that their firms were not prepared to handle the transformational changes taking place within their business models, expressing concern that overall culture remained opposed to change.  Over half of the respondents (55%) cited a lack of real-time information for operations as the number one barrier to improving organizational performance.
Additional barriers acknowledged by those surveyed include a lack of process standards and discipline (44%), a deficiency in integrated risk management (44%) and outdated information for strategic decision-making (42%).

"Pricing pressure, new operating models, entry into emerging markets, and the micro-segmentation of products are driving the need to modify cost structures and realign activities to address structural trends in the industry," said Balkrishan 'BK' Kalra, senior vice president and business leader, Life Sciences at Genpact. "With this in mind, life sciences companies must reassess their distribution models to have greater impact on their costs. This will not be enough, however, as the implementation of smarter technology, more streamlined financial processes, and insights from more intelligent data and analytics will be imperative for improving operations."

Genpact engaged Pilgrim Partners, an advisory and research firm, to conduct the field study and analyze the market data. The full reports on the findings can be accessed at the following links:

SOURCE Genpact Limited
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