U.S. Life Sciences Industry Digitizing to Meet Pandemic-Related Demands

Rhea-AI Summary

ISG Provider Lens™ report reveals accelerated digital transformation in U.S. life sciences, particularly MedTech, due to COVID-19. The report identifies trends such as increased demand for innovation in wearables, AI, and automation. MedTech companies are adopting digital solutions for improved supply chain visibility and reduced R&D costs. However, regulatory scrutiny is rising, prompting companies to seek external support for data management and compliance. The report evaluates 19 providers, naming Cognizant, TCS, and Wipro as Leaders.

Positive

• Digital transformation in MedTech accelerating due to COVID-19.
• Increased demand for AI, wearables, and automation improving business operations.
• Cognizant, TCS, and Wipro recognized as leaders in digital transformation services.

Negative

• Growing regulatory scrutiny may increase operational challenges.
• Life sciences companies historically reluctant to outsource key functions.

ISG Provider Lens™ report sees life sciences companies in the country looking to take advantage of innovations in wearables, artificial intelligence and automation

STAMFORD, Conn.--(BUSINESS WIRE)-- The COVID-19 pandemic has accelerated the digital transformation of U.S. life science companies, particularly in the MedTech sector, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Life Sciences Digital Services Report for the U.S. finds MedTech companies turning to digital transformation providers to support their digitization of product development, engineering, production and logistics.

MedTech providers find themselves at the intersection of multiple influences, the report says. These include significant leaps in the capabilities of devices, wearables, AI and automation; sudden increased demand from both the life sciences industry and patient populations; new opportunities in IoT, and the need for upskilled resources.

“The pandemic has accelerated the digital transformation of the MedTech industry, changing its approach to business and the way healthcare systems interact with medical device companies,” said Jenn Stein, partner, ISG Life Sciences in the Americas.

Stein noted the industry has an opportunity to drive new sources of growth and improve patient care through digital solutions, but it has a lot of ground to cover. “Through the use of digital technologies, MedTech companies can increase supply chain visibility, reduce maintenance and R&D costs, and deliver greater customer satisfaction and improved patient experience,” she said.

The medical device industry, in which the U.S. has a competitive edge, is looking for provider support in product lifecycle management, engineering services, logistics and distribution, and maintenance and repair, the report finds.

The report also notes that life sciences companies are under increasing scrutiny, from both regulatory agencies and consumer watchdog groups, to ensure patient safety and monitor quality and compliance. The industry’s pharmacovigilance and regulatory affairs functions have traditionally been reluctant to rely on outsourcing, the report says, but the increased volume of data and growing regulatory requirements have them rethinking that position. Life sciences companies are looking for providers that can leverage AI, natural language processing, machine learning and automation to deliver the insights, analytics and reporting needed for regulatory compliance and patient safety.

The report finds the COVID-19 pandemic has been a catalyst for record increases in employment and venture capital funding in the U.S. life sciences industry. Driven by these trends, the demand and pricing for facilities, talent, technology innovations and other resources are steadily increasing.

The 2021 ISG Provider Lens™ Life Sciences Digital Services Report for the U.S. evaluates the capabilities of 19 providers across two quadrants: MedTech Digital Transformation Services and Pharmacovigilance and Regulatory Affairs Digital Transformation Services.

The report names Cognizant, TCS and Wipro as Leaders in both quadrants and Accenture, Atos, Capgemini, HCL, IQVIA, LTTS and PPD as Leaders in one quadrant.

In addition, Harmon and HCL were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant.

A customized version of the report is available from LTTS.

The 2021 ISG Provider Lens™ Life Sciences Digital Services Report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005555/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 617 755 2985

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What does the ISG Provider Lens™ report reveal about U.S. life sciences companies and digital transformation?

The report shows that U.S. life sciences companies, particularly in MedTech, are rapidly adopting digital solutions due to the acceleration from COVID-19.

Who are the leaders identified in the 2021 ISG Provider Lens™ Life Sciences Digital Services Report?

Cognizant, TCS, and Wipro are named as leaders in both MedTech Digital Transformation Services and Pharmacovigilance and Regulatory Affairs Digital Transformation Services.

How is regulatory scrutiny affecting life sciences companies according to the report?

The report indicates that increased regulatory scrutiny is pushing life sciences companies to reconsider their outsourcing strategies for compliance and patient safety.

What opportunities for growth are mentioned in the ISG report for MedTech companies?

MedTech companies have opportunities to enhance supply chain visibility, reduce costs, and improve customer satisfaction through digital technologies.

What are the key trends impacting the MedTech market as per the ISG report?

Key trends include advancements in IoT, increased demand for wearables, AI, and automation, alongside the necessity for upskilled resources.