May 23, 2024
Pharmaceutical-and-Consumer-Health

Global Pharmaceutical Contract Sales Outsourcing Market Set to Exceed US$ 8,599.2 million amid Increasing Demand for Specialized Sales Force

The global pharmaceutical contract sales outsourcing (CSO) market is gaining prominence with the growing need for speedy drug commercialization and cost-effective sales solutions. Contract sales outsourcing aids pharmaceutical companies to enhance field performance and focus extensively on new product launches by outsourcing their sales activities. CSO companies provide customized sales solutions by leveraging their therapeutic expertise along with strong networks within the healthcare system.

The Global Pharmaceutical Contract Sales Outsourcing Market is estimated to be valued at US$ 8,599.2 Mn in 2024 and is expected to exhibit a CAGR of 8.6% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the Global Pharmaceutical Contract Sales Outsourcing Size are IQVIA Inc., Syneos Health Inc., Parexel International Corporation, PPD, ICON plc, Publicis Touchpoint Solutions, Inc., PRA Health Sciences, Inc., The Medical Affairs Company (TMAC), Ashfield Healthcare Communications Group, and GTS Solutions.

The rising incidence of chronic diseases and the growing generic market have substantially increased the workload for internal sales teams. CSO providers offer an experienced and specialized sales force that enables pharmaceutical companies to maximize coverage without increasing operational costs. This has fueled the demand for contract sales outsourcing significantly over the years.

Major pharmaceutical companies are also outsourcing their commercialization activities globally to enhance their international presence. CSO providers help establish local relationships and optimize sales performance across key international markets. North America dominates the current market demand owing to consolidated healthcare infrastructure and openness towards innovative sales solutions. Asia Pacific is expected to offer immense growth opportunities with the improving accessibility of novel drugs.

Market key trends

Outsourcing non-core sales activities allows pharmaceutical companies to shift focus to strategizing product launches and increasing R&D investments. CSO providers specialize in therapeutic expertise, field training, and customer relationship management. Leveraging such specialized operational skills enables drug manufacturers to launch products speedily and cost-effectively. This is a major trend driving increased reliance on contract sales outsourcing among pharmaceutical companies.

Porter’s Analysis

Threat of new entrants: The pharmaceutical contract sales outsourcing market requires high investment and expertise which is difficult for new players to enter.

Bargaining power of buyers: Pharmaceutical companies have high bargaining power as CSO providers depend heavily on a few big clients for major revenue sharing.

Bargaining power of suppliers: Due to limited suppliers for specialized sales outsourcing services, their bargaining power is higher in contract negotiations.

Threat of new substitutes: There exists no close substitute for CSO services as sales forces need specialized training and familiarity with drugs and client’s system.

Competitive rivalry: Being a competitive market, CSO providers compete on service quality, relationship depth with pharma clients, portfolio reach and geographic presence.

Geographical Regions

North America region accounts for the largest market share in terms of value due to presence of many pharmaceutical companies and medical research organizations. Factors such as trained workforce, sophisticated healthcare infrastructure and high healthcare spending drive high outsourcing of drug promotion activities to CSO providers.

Asia Pacific region is expected to grow at the fastest rate during the forecast period owing to rapid economic growth, increasing healthcare investments, growing middle class and their rising income levels in countries like India and China. Many international pharma companies view Asia as a high potential market and prefer outsourcing local sales teams for effective regional promotion.

*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it