New Delhi: The Indian bioinformatics market is poised to double by 2010 - from $32 million (Rs 120 crore) to $62 million (Rs 240 crore) by 2010, according to a report by research firm ValueNotes Outsourcing Practice.
Bioinformatics means the application of information sciences to biology. It deals with creation and maintenance of extensive electronic databases on various biological systems.
The survey - Bioinformatics outsourcing for life sciences: India Opportunity - noted that the need to optimise costs and increase research has lead to the increased adoption of bioinformatics tools and services.
The global bioinformatics market is expected to grow at a CAGR of 16 per cent over 2007-2010, which will catalyse the Indian bioinformatics outsourcing market to grow at 25 per cent per annum during 2007-2010. Around 90 per cent revenues of the Indian bioinformatics market is derived from outsourcing activities, the report said.
"Outsourcing agreements generally include software and database development and support services. Overseas clients usually conceptualise the product and outsource parts of product or database development," said Arun Jethmalani, managing director, ValueNotes.
India's strong base for pharmaceutical research and and IT services and well-educated low-cost English-speaking human capital are driving the off-shoring of bioinformatics services to India, the study stated.
Demand for biotechnology products and need for better utilisation of resources have opened up huge opportunities for the Indian vendors such HCL Technologies, TCS and Infosys, that offer integrated biotechnology solutions.
"The revenue driver for the Indian bioinformatics outsourcing vendors lies in offshoring to countries such as the US, Japan and Europe. Most of the Indian life sciences companies are generic and so not provide high-end services leaving less room for outsourcing," said Apurva Chamaria, category manager - life sciences and healthcare - HCL Tech.
