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Evaluating
According to the outsourcing destination
evaluation study done by PwC, (See Box
below for parameters) China tops the
outsourcing
table as the best outsourcing destination
followed by India, Korea and Taiwan re-
spectively. Both China and India, although
not leaders in all the factors, score strong-
destinations
Overview
Outsourcing index
Framework for evaluating outsourcing destinations methodology and sources
The component parameters of the
index and their respective weightings
are listed in box. The weights were
assigned after detailed analysis of
the relative importance of the factors
and sub-factors based on PwC
pharmaceutical practitioner experience
and industry research papers. A set
of data points/ metrics were identified
for each factor and sub-factor. The
following criteria were used for the
identification of a metric. i) The metric
can be measured objectively and is
linked to the corresponding factor; ii)
the data for the metric is available from
an authoritative source; iii) the metric is
not used for any other factor to prevent
duplication.
(Courtesy: PwC Report: The changing dynamics of pharma outsourcing in Asia: Are you readjusting your sights?)
Outsourcing Index: Ranking of Asian countries across all factors Market Opportunity
Outsourcing has ceased to
be just a cost driven activity.
Instead, strategic and
market opportunity factors
are playing an increasingly
significant role in deciding
Overview
the attractiveness of an
outsourcing destination. The
pharmaceutical market in
Korea is experiencing double
digit growth helping put the
territory close to Japan at the
top of the market opportunity
rankings followed by China
in the third place. India holds
the promise of significant
future market potential but
this is constrained by the fact
that its current healthcare
market is smaller than that
of Japan, China and Korea,
Outsourcing Index: Cost ranking of Asian countries hence its middle ranking
position in the table.
(Courtesy: PwC Report: The changing dynamics of pharma outsourcing in Asia: Are you readjusting your sights?)