By:Abhishek AryaSurendra VarmaTajan Joseph

Applied Research Project

“The current levels of satisfaction, identification of need gaps and areas of improvement in Business Process Outsourcing in Pharmaceutical Industry”

Research Objectives

R&D expenditure not yielding desired results

Need for outsourcing in Pharmaceutical Industry

Loss in revenues due to patent expiry

Government negotiation on Drug Pricing

Current Scenario of Outsourcing in Pharmaceutical Industry

Satisfaction with Outsourcing in Pharmaceutical Industry

•Almost 80% of the respondents are happy with their vendors.

•Crucial factors:•Responsiveness•The duration of engagement•Qualified staff

•Some critical functions were not outsourced.

•Overall Satisfaction was not very high.

Research Methodology

Popular Objectives for Outsourcing

Variation of Key Objectives Based on Outsourcing Maturity

Focus on Saving Costs and Concentrate more on R&D Activities

Focus shifts towards better management of capacity

Increased Focus on Implementation of Best practices and Improved Quality and Service

Expectations from all objectives are significant

Variation of Key Objectives Based on Different Categories

Variation of Overall Satisfaction

Factors affecting future outsourcing

Levels of Satisfaction based on Key Performance Indicators

The respondents were least satisfied with the quality of Service provided by the outsourcing vendors

The Satisfaction is highest with the quality of resources provided by the outsourcing vendors.

Mean Standard Deviation

Coefficient of Variation

Quality of Service

3.19 0.70 0.22

Business Management

3.34 0.59 0.18

People 3.51 0.65 0.19

Overall Satisfaction

3.38 0.52 0.15

1. Service Level Agreements2. Deadline3. Quality of Service4. Resolving issues5. Risk Management6. Planning Capabilities7. Reporting

1.Language and cultural barriers2. Time zone differences3. Adapt with other vendors

1. Timely and Effective day to day Communication

2. Commitment towards deliverables

3. Transparent Billing Process1. Sufficient availability of skilled resources2. Knowledge, expertise and skillfulness at work

Hierarchical Cluster Analysis

Exceeds Expectations

Below Expectation

s

Years 2-3

Years 3-4

Years 1-2

>4 Years

1- Adherence to Service Level Agreement

2- Meeting the deadline.

3- Resolving Issues and Conflicts.

4- Risk Management.

5- Planning Capabilities

6- Timely and Efficient Reporting.

1 2

3

4

5

6

Years 2-3

Years 1-2

>4 Years

Years 3-4

1- Ability to overcome Cultural and Language Barriers.

2- Ability to overcome Geographical and Time Zone Differences.

3- Ability to adapt and operate with other vendors.

2 1

3

Years 2-3

Years 1-2

>4 Years

Years 3-4

1- Timely and Effective Communication

2- Commitment towards Deliverables

3- Transparent Billing Process.

2

1

3

Years 2-3

Years 3-4

>4 Years

Years 1-2

1- Sufficient Availability of Resources

2- Knowledge, expertise and skillfulness at work

2

1

Factors influencing the outsourcing decisions

Conclusions

Recommendations

Limitations

• There is unequal distribution of respondents amongst various departments.

• The views expressed in the survey are individual opinions and do not represent the views of the outsourced organizations.

• Individual perceptions vary with time and individual judgments may distort a factual response.

• Sample size was restricted due to time constraints.