The 21st century is on the verge of a scientific and technology revolution in biosciences that could match the electronics and computer revolutions of the previous century. As it unfolds and begins to influence a broad range of industries, it will have a significant impact on associated IT markets and technology. The global bioscience market is poised for significant growth over the next five years, with particular development notable in the Asia Pacific region as governments seek to position their economies in this industry. IDC pinpoints India as a potential star in the coming years as pharmaceutical firms and research institutes look forward to cost-effective and high-quality research, development, and manufacturing of drugs with speed and cost efficiency. According to industry estimates biotechnology revenue is expected to grow five-fold to reach $750 million by 2005, rising to $1.5 billion by 2007, with 60% coming from exports to the global markets. This figure could alter over time, but is more likely to be on the upside.

Some Key Pointers Biotechnology revenues are expected to grow five-fold to touch $750 million by 2005, rising to $1.5 billion by 2007  Altogether, 60% is expected to come in from exports By 2005, IT spending in biosciences is expected to cross $138 million in India This will predominately be in the areas of system clusters, storage, application software and services The increased government focus on life sciences provides the necessary backbone to develop and deliver innovative products and technologies, build fast-growing and lucrative enterprises, attract international investment and create additional high-value employment opportunities  A CAGR of (2001-02 to 2004-05) about 10% in the spending on information technology by bioscience organizations is being projected by IDC India An aggressive growth rate is forecast post-2005—this is when IDC India says enterprises will try and play “catch-up”

"By 2005, IDC expects IT spending in Biosciences to cross $138 million in India, predominately in the areas of system clusters, storage, application software, and services" according to Sabyasachi, Asst Manager—Demand Side Research, IDC India. Also the governments’ life science focus provides a great deal of the necessary backbone to develop and deliver innovative products and technologies, build fast-growing and lucrative enterprises, attract international investment and create additional high-value employment opportunities. For those suppliers targeting the Biosciences area, our advice is to avoid throwing technology "over the wall" and focus on products and services that align with bioscience needs. Demonstrating a true understanding of the IT requirements of biotechnology processes is the key for IT suppliers to bridge the chasm that currently exists between IT and Science."

The past two years has seen many large multinational pharmaceutical companies acquiring or developing companies in the biosciences sector. IDC currently forecasts a CAGR (from 2001-02 to 2004-05) of about 10% in the spending on Information Technology by bioscience organizations. Considering the local market is generally less mature than those in the United States and Europe, IDC forecasts more aggressive growth beyond 2005, as many of the organizations attempt to play "catch-up". Enterprise applications including data warehousing, knowledge management, and storage are being pursued by these companies as priorities.

The major issue for India is its transition from a recognized global leader in software development to areas of real strength upon which it can capitalize in the biosciences. The identifiable areas are in computation biology and bioinformatics, where a substantial level of development skills are required to develop custom applications to knot together and integrate disparate databases (usually from several global locations), simulations, molecular images, docking programs etc. Bioinformatics is now widely recognized as the crucial practice to integrate, mine, analyze, and manage vast volumes of genetic and biological data emanating from R&D organizations worldwide.

These results have been generated from the October 2002 release of the ‘IT Trends and Investment Pattern in Biosciences’. The first of its kind, this program monitors the performance of vertical industries, IT adoption and investment pattern and provides IDC’s opinion on pertinent trends, market practices and events in the vertical industries space.

Team DQ