Diagnostic clinical research outsourcing market

Ashwini Shrivastava
New Delhi, May 5 (PTI) After business, knowledge and
legal process outsourcing, the Indian industries are now
eyeing 'diagnostics jobs' outsourcing from other countries.
According to industry experts, a number of hospitals in
the US and Europe are outsourcing laboratory and diagnostic
tests to India as it helps in saving cost and money while
maintaining quality.
The Indian diagnostics and pathology laboratory business
is around USD 864 million and is growing at a rate of 20 per
cent annually, they say.
Accordng to FICCI, the size of the global clinical trials
market was nearly USD 10 billion and predicted to have touched
by USD 26 billion by 2007
"Diagnostics and lab testing outsourcing is certainly the
most potential business domain. We are trying to tap available
opportunities in it," says Dr G S K Velu, Managing Director,
Metropolis Health Services India Ltd.
"There is an excellent outsourcing opportunity to test
around one million samples a year," he says.
The other emerging sector --Clinical Research Outsourcing
(CRO) -- is also witnessing surge in the country. The drug
manufacturing units are outsourcing different phases relating
to development of medicine to India.
In the case of diagnostics, X-rays and other procedures
are done abroad and the reports by experts are written here
and sent back, while in the case of lab tests,the
photomicrographs are electronically sent here and the doctors
send back the results, says Velu.
We plan to offer tele-pathology services to cater to the
needs of foreign clients faster, he says adding that countries
like Middle East, Srilanka, Africa, Nepal, Bangladesh and UK
outsource tests to India.
At present, the volume is not very high but the market
potential is huge as European countries as also the US are in
talks to outsource their work in this area.
Metropolis, that provides hospital Laboratory management
services and outsource number of diagnostic related works to
India, has number of labs in Middle East and South-East Asian
countries, including Thailand, Indonesia and Vietnam.
"We processes more than 10 million sample tests per year
and around one per cent from outsourcing, Velu adds.
"There is a great opportunity for tapping CRO in the
nation. The volume of business is expected to touch USD 1-1.5
bn mark by 2010," said Dr Umakanta Sahoo, Managing Director,
Chiltren International, a global CRO firm.
There are as many as 30 Global CROs and 100 companies
involved in doing clinical research related jobs in the
country.
Most of the work comes from US (almost 20 per cent) and
Europe (70-80 per cent). We undertake approximately 300
studies a year, he says.
"It is not the lack of expertise behind outsourcing
Clinical Research related jobs. But, availability of manpower
and time saving," he says.
The sector is also poised to deliver excellent job
opportunity and career options to research fellows. McKinsey
estimated that the Indian CR (clinical research) market will
grow to USD 1.5 billion in value by 2010.
"Research job is not regarded much in our country. We
need to train researchers to meet the growing demands in CRO,"
he added.
Asserting that the country has bouquet of products to
offer to foreign clients and attract outsourcing, he said
"There is urgent need to market our products globally. The
government has to start speaking globally about diagnostics
and lab work outsourcing in the same way as information
technology."