Latest Leading Indicators from Life Science Insights: Twelve Month Spending Outlook Positive; Clinical Trials Area Leads in Optimism
FRAMINGHAM, MA – OCTOBER. 29, 2004 – The life science industry is moderately bullish regarding IT spending growth over the next twelve months, with the average IT budget expected to increase by 5%, according to the latest report in the "Leading Indicators in Life Sciences" series from Life Science Insights. Across all segments, spending on information infrastructure emerged as a priority, with performance-related and security-related concerns being key drivers behind these anticipated investments. Study results reflect growing industry concerns that existing storage systems are not up to the capacity or performance levels required to meet the growing demands of information-intensive life science environments.
Clinical Trials was the only segment in which IT spending sentiment rose still higher this quarter than last quarter. The clinical portion of the value chain is under increasing pressure to reduce the time and cost of trials, and the only way to achieve that objective is by overhauling existing processes and increasing automation, with IT playing a central role. Many metrics investigated, including the redesign of clinical trial processes, the migration of clinical trials to electronic formats, e-submissions to regulatory agencies, and the standardization of clinical trials platforms, all indicate industry momentum towards a greater reliance on technology in the clinical trials process.
Similar to the Clinical Trials area, research results suggest fundamental shifts are underway in the use of IT in the Basic Research and Drug Development segments as well, with laboratories expected to become more automated and laboratory information management systems (LIMS) more centralized over the next twelve months.
"The industry drive towards increased efficiency, quicker time to market, and earlier risk evaluation as enabled by technology presents a substantial opportunity for IT vendors," said Research Analyst Melissa Utter. "However, due to the complex nature of this market, commercial offerings still do not meet the needs of a significant portion of the life sciences, especially in the industry specific areas of research, development, and clinical trials. The market landscape will shift significantly over the next year as the race to garner market share in this lucrative segment continues to intensify," said Utter.
Published quarterly by Life Science Insights, "Leading Indicators in Life Sciences" studies are produced by surveying a panel of end users in a wide range of functions and at various job levels in pharmaceutical and biotech companies and academic and government institutions. The reports are aligned into five segments: Basic Research/Drug Discovery, Drug Development, Clinical Trials, Sales and Marketing and Manufacturing.
Survey responses for "Leading Indicators in Life Sciences" studies provide first-hand information on budget plans, spending priorities and views on key technology issues in life science IT markets. Since reports are published each quarter, subscribers have regular input analyzing end users' plans and views. This helps with business planning and priority setting by tracking trends in spending and technology adoption as well as giving a perspective on changing market dynamics.
To learn how Life Science Insights' "Leading Indicators in Life Sciences" series can support your business planning by providing granular data and research on a regular schedule, please contact Paul Hands at 508.988.6751.
About Life Science Insights, an IDC Company
Life Science Insights, an IDC Company, provides market research, analysis, and consulting services to decision makers in life science markets. Clients include pharmaceutical and biotechnology companies, contract research organizations (CROs), government research organizations, and technology vendors. Life Science Insights' team of specialist analysts and consultants provide intelligence and advice on technology trends, key market drivers, and end-user intentions. Founded in January 2004, Life Science Insights is headquartered in Framingham, MA. Visit www.life-science-insights.com for more information.
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