Outsourcing Market Will Continue To Grow Driven By The Demand From Medical Equipment Industry

Outsourcing in the Global Medical Equipment Industry -reduce direct expenses and streamline supply chains.
The Market Expected to Register High Growth in theOutsourcing of manufacturing activities has helped
Futuremedical equipment companies to reduce costs by
 between 10% and 25%.
 IT provides key data, information and analysis on the 
global medical equipment outsourcing industry. The Contract Organizations are Emerging as Strategic
report analyses the drivers behind outsourcing ofPartners to Reduce Time to Market and Cost
manufacturing, clinical research and other support The medical equipment industry is forming strategic
services to low-cost service providers based in Asianpartnerships with contract organizations to leverage
countries and elsewhere. The report also providestheir global presence and research expertise. The
information on the key economies attracting majorityagreements with contract organizations are aimed at
of medical equipment outsourced work. The report islowering the time to market as well as reducing costs.
also supplemented with information on the preferredThe service models of the contract organizations are
vendors executing most of the medical equipmentevolving to become more functional, where services
outsourcing work.are outsourced based on the analysis of their core
 competencies. The increasing focus on strategic
 Outsourcing Market will Continue to Grow Driven bypartnerships will drive the growth in emerging
the Demand from Medical Equipment Industryoutsourcing destinations which have many small niche
 The global medical equipment outsourcing market iscontract organizations specializing in different functions.
forecast to reach $40.1 billion by 2016 with a CAGR ofMedical equipment companies are expected to
16.3%. The ageing population, advancements inincreasingly rely on contract organizations to enhance
technology, desires to lead active lifestyles, the rise intheir product pipeline strength by bringing the products
chronic conditions and increased public & privateto approval at a faster rate.
spending are expected to drive the medical equipment 
market. These drivers are providing a promising Regions such as Latin America, India and China
opportunity for the medical equipment companies andAttract Increased Contract Research Outsourcing due
service providers. Also, the increasing desire by theto Competitive Benefits and Increased Regulatory
medical equipment companies to improve cost savingsCompliance
and to bring products to the market quickly is The US and Europe dominate the contract research
expected to drive the medical equipment outsourcingoutsourcing market and account for the majority of
market in the future.clinical research activities. However, this trend is
 changing with the emergence of regions such as Latin
 Contract Manufacturing is Expected to Remain theAmerica, India and China as preferred locations for
Major Contributor of Medical Outsourcing Marketoutsourcing. These regions provide a cost advantage,
 Contract manufacturing accounted for 90% of thebetter patient enrollment and expert personnel. These
global medical equipment outsourcing market in 2009emerging regions are more cost effective with quality
and is expected to contribute 91.7% by 2016. Thisstandards on par with the developed regions. All these
market is forecast to reach $36.8 billion by 2016 with acountries have aligned their clinical research regulations
CAGR of 16.5%. Contract manufacturing remains thewith the international standards and requirements
key market segment driving growth within thewhich allows them to conduct clinical trials and
outsourcing market. The contract manufacturingresearch on behalf of medical device companies in
market is expected to be driven by the increasingdeveloped countries.
desire of the medical equipment manufacturers to