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Pharma - Infrastructure Agenda 2010
With a view to addressing market needs more efficiently, organizations in this sector will invest in technologies such as BI while simultaneously adopting a cautious approach to SaaS and other cloud-based services By Harshal Kallyanpur, NWC, 12/1/2009 12:00:00 AM
    
 

Despite being hit by the economic slowdown, the Pharma sector can be expected to find several growth opportunities in the country next year. This can be attributed to the fact that several healthcare institutes are coming up in the country to address healthcare needs. The country has also seen an early growth of clinical research institutes. The advent of new pathogens such as the H1N1 virus and a relatively untapped rural market can also open up new opportunities.

With a view to addressing market needs more efficiently, organizations in this sector will invest in new technologies and finetune their current IT infrastructure to not only reduce operating costs but also improve overall business efficiency. This trend is also visible from the results of the Infrastructure Agenda 2010 survey.

60 percent of the survey respondents expect an increase of up to 40 percent or more in their organization’s IT spends in the year 2010, when compared to 2009. Only 20 percent believe that the IT budget allocation in their organizations would either stay the same or decrease in 2010.

Figure 1: IT budget outlook by CIOs from the Pharma sector
budget outlook by CIOs
Of the survey respondents, 75 percent see their organizations investing further in BI solutions in the next year, or expect increased investments in ERP, SCM, CRM and other enterprise applications. This can be attributed to the growing competition in the Indian market and because the market dynamics are changing rapidly. A staggering 90 percent of the respondents see greater investments in the area of security by their organizations. Pharmaceutical organizations are looking to enforce greater security in their IT infrastructure due to the need to meet compliance and regulatory requirements and to protect intellectual property.

While the other verticals in the Infrastructure Agenda 2010 survey are optimistic about increasing their investments in virtualization, the Pharma sector seems to be trailing behind (see Figure 1). Fifty percent of the respondents expect further investments in servers—while only 25 percent believe their organizations will increase investments in virtualization technologies.

Organizations today are investing in technologies that will help them bring down their TCO. While 80 percent of the survey respondents expect further investments in video conferencing and/or unified communications, 50 percent look to invest further in energy-saving technologies and bring down their energy consumption costs. Only 25 percent respondents agree to invest in SaaS/cloud computing solutions in 2010. This indicates that while the Pharma sector will see continued investments in IT in 2010, it will take a cautious approach to adopting new technologies.

K T Rajan
Director—Operations, IS & Projects, Allergan India

 

S ome IT initiatives that we will look at in 2010 include adopting virtualization and deploying a unified communications solution. We are also looking at having a promotional spends and expense management solution in place next year. Business Intelligence will also be a key focus area for us in 2010.

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