Major software companies are now competing with each other to get a share of the burgeoning market for softwares required for pharmaceutical companies. As pharmaceutical companies go along acquiring units or merging separate divisions into one, the question of integration of operations has resulted in a huge market for softwares that will enable them to have integration without much hassles.

On the other hand, increased R&D activities too have created market for software companies to develop softwares that could scan a whole lot of molecules developed and create a suitable potential drug candidate. And pharmaceutical companies are now allocating a bigger budget to bring information technology into their very working.

Companies like Metamor Global Solutions, Mphasis, TCS, Congizant Technologies Ltd, Wipro and Infosys are some of the big companies that are eyeing this market. While Infosys has just initiated its development activities the others have a significant presence in the market. While the health sector has been on the agenda of some of the software companies, developing softwares for pharmaceutical companies has not been touched upon on a bigger plane. That the pharmaceutical companies are now looking for softwares that will bring down the production cost, and thereby the product cost, has set the ball rolling for software companies to look at the segment.

Pharmaceutical majors, Ranbaxy, Dr. Reddy's, Aurobindo Pharma, Pfizer, Zydus Cadila, Orchid Chemicals, to name a few, have spent heavily on implementing softwares for their operations. "Pharmaceutical companies now have realized that they can't leave information technology outside. They need it to bring continuity to the functions of various departments including R&D thereby giving them a possible edge in the competitive market," says an official of Metamor. What is surprising is that both the software developing companies and the pharmaceutical companies are now allocating bigger budget to respectively develop and implement the softwares. Solitary cases of pharmaceutical companies tying up with software companies for customised softwares have also been reported.

"These things are bound to happen. Information technology ensures smoother functioning and better integration of various activities. In short it allows for a total control of all operations including sales and marketing. It has now extended to R&D also," says the official.

Though no clear estimate of the market is available, industry sources put the figure at some Rs.2000 crore. How true they are is not known, but the market has been expanding at a phenomenal CAGR of 45 - 50 per cent. "Even smaller pharmaceutical companies are going for softwares. The GMP norms also necessitates the same but more than this it is the reason of having total control on production and other factors that is forcing these companies to go in for information technologies. Product pricing is the main factor that allows them to compete and information technology is just one medium of having your products competitively priced," claims an official of TCS.

Industry sources claim that the pharmaceutical companies will continue to invest heavily in information technology even in the future till such time they have full integration of their operations. And this is good news for software companies, which are coming out with slew of products that are claimed to be more efficient with new features unlike the older versions. "Keeping pace with changing softwares also means a market to us. As newer and newer versions of softwares hit the market, pharmaceutical companies are bound to switch over from the earlier version. Which means the software companies too have to keep pace with the requirements of the pharmaceutical companies," claims an official of TCS, who further adds, "it is not easy as one expects".

With different software companies pitching in for a sizeable share of the market, it is a win-win situation for both the software and pharmaceutical companies. While the former gets a sizeable share of the market, the latter gets the best of information technology.