Analysis of TCS's - Pharmaceutical (Life Sciences) and Healthcare Practice
IT spends and the related outsourcing is increasing among the pharmaceutical and health care companies. According to industry sources, presently more than 80 percent of the pharmaceutical industry's IT spend is on maintaining and supporting the disparate IT systems. Application of IT in pharmaceutical and healthcare industries improves data collection, speed up regulatory reporting, management of clinical trials, and operations relating to procurement, manufacturing, finance, human resources, and facilities. Pharmaceutical companies, working under pressure to reduce costs, time to market, achieve compliance to regulatory requirements and integrate disparate IT systems, easily perceive the benefits of collaborating with IT service providers such as TCS. TCS expertise in Pharmaceutical and Healthcare industries positions it well in this business space. TCS, a frontrunner among the major Indian IT solution providers has worked closely with the pharmaceutical industry in developing IT solutions. ARC Analyst Libi Baskaran strongly believes that "IT service providers with technical and domain expertise, coupled with offshore and delivery capabilities, can add more business value to the pharmaceuticals and healthcare companies".
Tata Consultancy Services (TCS), a leading Indian IT services company with reve-nues exceeding $2.9 billion and serving over 600 clients across 35 countries, provides solutions to Pharmaceutical and Healthcare Industries. Dr. Vidyasagar, Executive Vice President, and Rahul Thapan, Head Business Acquisitions, Life Sciences and Healthcare Practice of TCS, briefed ARC Analyst Libi Baskaran about their growing presence in pharmaceuticals and healthcare space.
According to Rahul, TCS Pharmaceutical (Life Sciences) and Healthcare practice offers comprehensive service portfolio well supported by proven record of accomplish-ments contributing to the company’s growth in this segment. TCS commenced its pharmaceutical and healthcare business operations in 2002. Presently the company, with 2,500 technical and domain experts, provides consulting, application, package implementation, and business process outsourcing services for healthcare and phar-maceutical companies. About 500 of them are in one of the Offshore Development Center (ODC) in India catering to the requirements of a large US pharmaceutical com-pany.
According to TCS, a number of pharmaceutical and healthcare companies in UK and US have reposed confidence and signed outsourcing contracts. Drug discovery and devel-opment stages of the pharmaceutical companies are the areas where TCS’ service and product capabilities with the ‘Biosuite’ and ‘Clin-e2e’ solutions have come to be appre-ciated. These IT solutions are compliant with the regulatory standards such as 21 CFR Part 11.
According to, Dr.Vidyasagar, TCS service offerings to the Pharmaceutical industry are in drug discovery and clinical trials & drug development areas, including structure-based drug design and bio-informatics. He cited the company’s engagement with Congenia of Italy, in determining the 3D structure for the target P66 protein using TCS competencies in Biochemistry domain and technical expertise in computational tech-niques. In the clinical trials & drug development area, TCS offers Clinical Data Management Solutions (clin-e2e) and statistical analysis services. Dr. Vidyasagar be-lieves that all these services facilitate their clients to reduce ‘time to market’ and provide a common platform in drug discovery and development stages.
In Healthcare, the company offerings are electronic medical record (EMR) solutions, and integrated hospital management applications and systems. One of the national healthcare services organization leverages TCS’ capabilities in healthcare.
ARC’s Analysis and Industry view
Pharmaceutical and Healthcare industries derive numerous benefits by leveraging the capabilities of IT service providers. IT spends and the related outsourcing is in-creasing among the pharmaceutical and health care companies. According to industry sources, presently more than 80 percent of the pharmaceutical industry’s IT spend is on maintaining and supporting the disparate IT systems. Application of IT in phar-maceutical and healthcare industries improves data collection, speed up regulatory reporting, management of clinical trials, and operations relating to procurement, manufacturing, finance, human resources, and facilities. Pharmaceutical companies, working under pressure to reduce costs, time to market, achieve compliance to regula-tory requirements and integrate disparate IT systems, easily perceive the benefits of collaborating with IT service providers such as TCS. TCS expertise in Pharmaceutical and Healthcare industries positions it well in this business space.
TCS, a frontrunner among the major Indian IT solution providers has worked closely with the pharmaceutical industry in developing IT solutions. ARC Analyst Libi Baskaran strongly believes that “IT service providers with technical and domain expertise, coupled with offshore and delivery capabilities, can add more business value to the pharmaceuticals and healthcare companies”.
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