Another industry is outsourcing work to India!

[Veggie Meathead]

The Scientific American (August 2004) issue that I received today says that American and European Pharmaceutical companies are shipping R&D and clinical trials to India.Some highlights from the article titled OUTSOURCING DRUG WORK:

1.India has recently signed an intellectual property law that honors foreign product patents making it possible for American, european and Japanese corporations to conduct clinical trials in India without fear of piracy of their products or processes.

2.Clinical trials in India cost a fraction of what it costs in the U.S or Europe. Since pharmaceutical companies spend more than 25% of their sales dollars on R&D, there is a substantial savings potential.

3.India currently has 20,000 corporations capable of conducting clinical trials.

4.Indian doctors speak English fluently and have a good grasp of the chemistry of the pharmaceuticals involved.

According to this article, there is a stampede of pharmaceutical companies planning to set up shop in India.