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New report says global outsourcing of medical devices growing

The global outsourcing market for medical devices is projected by market research publisher Global Industry Analysts to reach about $42.6 billion by the year 2015. GIA also says the current economic slowdown is putting more pressure on device OEMs to reduce costs by outsourcing to low-labor-cost areas like India and China.

PlasticsToday Staff

June 15, 2010

1 Min Read
New report says global outsourcing of medical devices growing

The report titled "Medical Devices Outsourcing: A Global Strategic Business Report" includes a review of market trends, growth drivers, and challenges. It also enumerates recent acquisitions and other strategic industry activities, and offers latent demand estimates and projections for world medical device outsourcing in value terms broken out by the U.S. and ROW (the rest of the world).

The need to remain competitive while delivering superior products, exceptional customer service, and very high quality is, the report says, creating the need for OEMs to upgrade medical devices themselves, and at the same time to boost R&D efforts, control costs, and find innovative ways to control costs. While contract manufacturing continues to gain wider acceptance and recognition, OEMs are seeking ways to better manage their outsourcing partners, and preferably to manage fewer of them. Such a trend has led to the emergence of one-stop shops that can to synchronize multiple services.

According to the report, ongoing poor economic conditions are also expected to encourage OEMs from Europe and North America to tap labor from low-cost destinations such as India and China, which the report says offer highly skilled labor at relatively low cost. The full 169-page report, which covers 46 companies and includes 29 market data tables, costs $3950 from Global Industry Analysts.

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