The Contract Research and Manufacturing Services (CRAMS) segment is growing in popularity around the world, and the Indian CRAMS business has seen significant expansion in recent years. Given its strong growth prospects, inherent competencies, and favourable regulatory environment, India will have successfully captured a significant portion of global outsourcing demand by 2020, and the number of international companies off shoring their global R&D and manufacturing operations to India and establishing low-cost facilities here will significantly increase. India will become a key component of the global pharmaceutical industry’s drug discovery and manufacturing value chain. India’s ability to compete and sustain its natural skills will boost this segment, which would be aided by predicted improvements in IP infrastructure.
Today’s businesses succeed by concentrating on what they do best and delegating the rest to others. Contract manufacturing appears to be a natural fit for this method. Contract manufacturers, in addition to allowing businesses to focus on their core strengths, provide a number of other benefits over in-house production, including cheaper costs, greater flexibility, access to external knowledge, and fewer capital requirements. Even with sound assumptions, achieving the desired outcomes may be difficult. This is due to the difficulty of managing complicated relationships. In an ideal world, the parties would devise flawless strategies that would allow them to govern their relationship.