RALEIGH, North Carolina, Oct. 17, 2019 /PRNewswire/ — The global market for clinical staffing is currently estimated to be worth $5.7 billion, having been growing at a steady rate over the past few years, according to Beroe Inc., a procurement intelligence firm. Increased diversification among clinical trials in terms of therapeutic areas, regions, and technology are driving the growth of the clinical staffing market at a global level.
North America accounts for 45-52 percent of the clinical staffing market with Europe accounting for 35-40 percent. The biggest surge of newly registered trials was seen in the regions of East Asia (+220 percent), Japan (+90 percent), South Asia (+45 percent), Southeast Asia (+45 percent), the Middle East (+35 percent), Africa (+30 percent) and Latin America (+20 percent). In comparison, the developed markets of the US and Europe saw a rise of +36 percent and +32 percent respectively; thus, increasing the demand for clinical staffing.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
An increase in clinical trials across the world is driving the growth of the clinical staffing market, in addition to demands from multiple client bases such as pharma companies, which have the biggest spend of over 40 percent on clinical staffing, biotechnology, consumer health and more. The conduct of small population studies in various therapeutic areas has created a need to have specialized staff. Stringent regulations to conduct trials have restricted suppliers to provide resourcing solutions. Limited resource availability and high employee turnover rates for clinical/scientific staff cause a supply crunch, posing a challenge to market growth.
With increasing clinical trials globally, CROs are setting up FSP units for staffing, where CROs engage with pharma companies through master vendor/supplier, function service provider or hybrid model. Sponsors are increasing their use of outsourced labor to meet the increased capacity of their workforce. They will benefit from cost structure advantages, improved flexibility in addressing fluctuating demand, and access to greater expertise. Shortened contract terms to manage risk at a gradually growing FTE rate are being observed.
- In the coming years, mid-size CROs would further expand into resourcing, as the demand for insourcing and FSP models from pharma companies would increase. CROs would move more jobs to low-cost countries for certain job roles freeing up spend for other key areas.
- The supply market for clinical staffing is fragmented with 10–15 players hold over 70 percent of the market share and each of them specializing in a different service category. Top suppliers are Randstad, Hays PLC, Parexel, Docs Global, and Inventiv Health.
- Staffing companies compete amongst each other for the market share by winning MSP deals with huge hiring across industries to increase their client base and gain renown as specialists.
- Labor is a critical cost component of conducting trials. Though automation through technology systems are used to increase efficiency, the staff is needed to ensure proper trial management and monitoring.
- Within the clinical staffing market, the supplier mix is of four types, Clinical Staffing, Staffing Agency, CRO, and Life Sciences Staffing, among which, clinical staffing providers are higher in number compared to the rest.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
There is a 15–20 percent cost difference between the rates charged by CROs to those of staffing companies largely for clinical development roles such as biometrics, data management, pharmacovigilance, and medical writing. The main reason for the higher cost from CROs is that the resources provided by CROs are already trained and tested on the protocols. This has an impact on the lead time reducing training and development costs, and thereby increasing efficiency.
The report also includes:
- Clinical Staffing Market
- Growth Drivers and Constraints
- Market Trends
- Porter’s Five Forces Analysis
- CRO Vs. Staffing Company FTE Rates –Case Study
Supply Market Overview:
- Supplier Landscape
- Supplier Client Base Analysis
- Major Suppliers
- Mergers & Acquisitions
- Engagement Models
- Pricing Models
- Cost Analysis
- Industry Key Performance Indicators
- Supply Challenges and Risk Mitigation Strategies
About Beroe Inc.:
Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.