Outsourcing of medical devices manufacturing helps to reduce production costs by 12-15 percent
Outsourcing of medical devices is an efficient budget-saving activity whereby Original Equipment Manufacturer’s subcontract certain operations or services to contract manufacturers skilled in a specific operation or service. These contract manufacturing companies have the skills and abilities required to perform operations or services within the given period. One of the important factors driving the growth of the world market for medical devices outsourcing is the ever-increasing demand for quality medical care. Currently, the increasing prevalence of chronic conditions leads to higher demand for early disease detection for enhanced disease management. Depending on the quality of the medical devices, the quality of the medical care is dependent. These forces device manufacturers to subcontract product development in order to stay a step ahead in the dynamic healthcare industry to highly trained third-party product companies.
Benefits enjoyed by manufacturers of original equipment such as premium pricing and market share expansion together with cost savings compliment the growth of the market. In addition, a rise in the global geriatric population is expected to boost demand for medical equipment and supplies, thus strengthening the market. However, a stringent regulatory environment towards medical devices impedes the market growth over the forecast period.
Outsourcing of products helps to reduce manufacturing costs by 12-15 percent, thus allowing companies to survive competitiveness, another key factor driving the global market for medical devices manufacturing outsourcing. Today, for operations and maintenance purposes, nearly all medical devices are incorporated with IT solutions. For instance, domain experts such as Persistent Systems, HCL, Amdocs and Wipro are now subcontracted software for patient monitoring systems that was originally developed in-house.
Outsourcing the production of goods and services helps maximize profit by minimizing downtime-to-market, another key driving factor for the growth of global medical devices outsourcing market. This is due to a major amount of time in the production of medical devices is spent obtaining approvals from legally enforceable bodies. This time can be lowered by utilizing outsourcing service providers such as SAP, Oracle, Patni and Infosys that provide process control facilities for legally enforceable bodies to obtain approvals. In addition, these providers are expertise in developing the suitable application software which further reduces overall production time.
The global medical device manufacturing outsourcing market is categorized on the basis of application, product type, service, and geography. By product type, this market is fragmented into raw materials, EMS, and finished goods. By application, this market is segmented into cardiovascular, ortho & spine, IVDs, medical imaging, general medical devices, and others. Furthermore, on the basis of service, this market is fragmented into product upgrade & maintenance, product design & development, product testing & certification, regulatory consulting, product implementation and supply chain management. By geography, it has been classified across North America, Europe, Asia-Pacific, Latin America and Middle East & Africa.
The key global players of Medical Device Manufacturing Outsourcing market are Integer, Eurofins Scientific, Pace Analytical Services, Plexus, Intertek Group, Tecomet, MAPI, Jabil, PPD, Flextronics, Freyr Solutions, Celestica, Wuxi Apptec and Toxikon Inc.