MNCs need to know Indian culture for pharma outsourcing: report

In order to set up successful outsourcing business in India, global pharmaceutical players need to understand Indian culture and values besides focusing on long-term strategy, according to a report.

Jointly released by Ernst & Young and Organisation of Pharmaceutical Producers of India (OPPI), the report entitled -- Successful partnerships: Insights on working with Indian pharmaceutical service providers -- said the best efforts by multinational pharma firms could be undermined by lack of awareness of local values and cultural norms.

"In the Indian context, working successfully with global sourcing players involves deeper understanding of India around three broad areas — capability, capacity and culture," OPPI Global Sourcing Committee chairperson Alok Sonig said.

Stating that India holds nearly 3-5 per cent share of the global pharmaceutical outsourcing business, the report said: "...While significant business opportunities may be there for taking in India, the best efforts of a western entrepreneur or manager may be undermined simply due to lack of awareness of values and cultural norms."

The report further emphasises that clients need to have long term strategic vision for their outsourcing initiatives.

"Customers need to have clearly articulated long term goals and a shared vision for their outsourcing initiatives. This long term vision needs to consider India not just as a source location but the place it would occupy as a key emerging market," it said.

On investment front, the report said customers need to invest in development, either through facilities or training.

"...This will help create ecosystem and accelerate the process of change and lead to more benefits quickly for the industry as whole," it added.

The report further identified key considerations like creating supply chain efficiency, creating an investment culture and building a pool of industry ready research talent pool for global customers in India.

As for the Indian firms, the report said the companies were expected to perform in accordance with global standards.