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  • Advice You - Outsourcing - The Next Phase

    Industry analysts have been predicting for months that India’s capacity for taking in American outsourcing work is starting to stretch its limits. The governmen
    According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
    t has always taken steps to restrain continuing growth, but now we’re seeing the American companies taking action. They are deliberately moving some of their ou
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    sourcing capacity to the next-step destinations, such as the Philippines, China and Vietnam.

    India’s government was right to try to restrict growth, because the
    lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

    resulting rise in costs is now being realized and passed on to the American companies.

    Sykes is a large US-based contract center and IT support organization wit
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    operations in both India and the Philippines. It has recently announced it will move much of its capacity from India to the Philippines. For a company of this
    d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    size to make this drastic of a move means the price differential is substantial.

    GXS is another global business-to-business service provider who is moving opera
    ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
    ions with strong customer service components to the Philippines. They have found better economics and results there. They’re leaving their product development
    easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
    perations in India. Overall, they feel that this arrangement minimizes risks.

    A recent investment decision is further evidence of the growing interest in the P
    nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    ilippines as an outsourcing destination. Ambergins Solutions, a large call center operation, just received an investment of $43.5 million from a Canadian-based
    and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
    lobal IT solutions provider. A company source said the Asian Pacific region appeared to be the best long-term opportunity of anywhere, including India.

    RCG Inf
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    rmation Technology is another large IT service provider. They have stated clearly that they do not intend to make India a part of their strategy for the foresee
    ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

    Following aspects would a
    ble future. Instead they have targeted the Asia Pacific region for further expansion and already have a presence in the Philippines. Their analysis revealed th
    dd to the challenges in developing combination products:

    Which markets to tap where the combination products can do fairly well?
    Which combination prod
    t India’s prices are rising, due to the overcrowding of clients there. Employees are jumping from one firm to another to get better pay. This is causing overal
    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    prices to increase, while skill levels sink. They have found English communications skills to be superior in the Philippines.

    Hewitt has begun hiring for its
    tions increase the patient compliance?
    What would be the developing cost?
    How to tackle the risks encountered during combination product developmen
    ew BPO facility in the Philippines. So has HSBC, the international banking concern. On the flip side it has been reported that Indian nationals working here in
    t?

    As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
    the United States are being wooed to go back to India, where demand for their work is high. They are having trouble doing so, however, because their salaries ar
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    traditionally so much lower than in the U.S. This, too, is contributing to India’s increasing rates, as they start to face the downside of fiscal globalization
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products


    But don’t count India out yet. India created the offshore outsourcing model and its continued managerial competency will drive it forward. It still dominates
    .

    As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
    and enjoys a fine reputation and attractiveness worldwide. Its current growth slow-down does not indicate weakness but, rather, great success. If places like t
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    e Philippines and Vietnam have not been quite as successful, they are learning from India how to attract their share of quality and sizable outsourcing employers


    tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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