Niyamath Parveez

Everyone knows by now how important Indian outsourcing has become for countries all over the world. Regardless of the industry, the benefits of halting your own production levels and shipping them overseas have aided many companies stay afloat and prosper. Given the current economic crisis, anything which a company can do to improve their status and situation has to be examined in great detail. If you are a boss of an organization and you are not at least thinking about what outsourcing can do for you then you are seriously neglecting your duties and responsibility.

One major industry which has woken up to the benefits of outsourcing is the pharmaceutical industry. The ability to ship the production of the drugs and tablets from host countries to India has made it much easier to reduce labor costs without compromising the quality of the product on offer. This has seen the drug manufacturing companies improve their financial outlook and make it more likely they will have a successful financial future for many years to come.

“The DRL–GSK deal is positive over the long term, with $25 million (Rs 117 crore) revenue from FY11 and the full impact will be witnessed by FY13. This deal enables the company to get strong exposure to emerging countries without any investments"

was the opinion of chief analysts within the industry. Given the importance of the industry and the amount of tests and regulations involved with the industry, the analysts are likely to have a great deal of knowledge about the industry.

Therefore, what they say is likely to be worthy of following or tracking. This is as true for the small firms as it is for the big firms, making for a great deal of consistency throughout the industry.

One of the major firms in the industry are Cipla, the countries biggest domestic based drug maker and they have been selling a great deal of their drugs overseas. The firm has a partnership relationship with over 21 firms, proving their ability to work with other countries. Unsurprisingly, Cipla are very much in favour of outsourcing and are very keen to do a lot more work in this area.

“Cipla has always followed a model of partnership and alliances in marketing its products, particularly overseas. We are in constant dialogue with a number of multinationals towards developing products, regulatory packages and ultimately supply of products from our world-class facilities.”

In addition to this, the following comments indicate that many other firms in the business are looking to be become involved in this market as the benefits that arise from it are vast and plentiful.

“I am confident of out-licensing at least one of our new chemical entities (NCEs) under development before the end of this financial year,”
“Our priority is not to grow top line in the coming years, but the focus will be to increase profitability,”

Anything that a firm can do to improve their financial status has to be explored and this method of production is extremely popular.