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Outsourcing
India to be main destination for pathological tests outsourcing
By Sumeet Chatterjee

NEW DELHI: A vast base of inexpensive professionals, latest equipment, IT skills and a focus on quality may turn India into a preferred destination for pathological tests outsourcing.

After carving out a niche for itself in the global market as the electronic housekeeper to the world, one of Asia’s fastest growing economies plans to strike it big in the medical test outsourcing business, with clients in the Middle East and Europe.

According to industry representatives, hospitals in the Middle East and London are increasingly shipping blood samples to India for various pathological tests to cut costs and clear the huge backlog.

“The total size of the pathological tests market in Britain alone is two-and-a-half billion pounds,” said Harpal Singh, chairman of SRL Ranbaxy, a pathological testing arm of Ranbaxy Laboratories, India’s largest drug maker by sales.

“At least 15-40 percent of the total market size can be outsourced to India over the next few years. There are other countries in Europe also that can send samples to India for medical tests,” Singh told Indo-Asian News Service.

“Overseas hospitals can reduce their costs by as much as a third per test if they outsource it to a laboratory in India. The savings more than make up for the cost of flying samples across to testing centers here.

“Test results are mailed back electronically to respective hospitals within 24 to 48 hours of the receipt of the sample.”

Mumbai-based SRL Ranbaxy conducts tests for major private hospitals in the Middle East across its 11 laboratories located in different parts of the country and sends reports through e-mail.

Vinay Aggarwal, secretary general of the Indian Medical Association, said India has all the necessary ingredients to emerge as the global medical test outsourcing hub in the near future.

“Costs for conducting all kinds of medical tests are of course a lot cheaper in India. But it’s not just the economic aspect that will help the industry to flourish in the years ahead.

“More than the costs, it’s the focus on quality of service that will encourage hospitals from across the world to transport their samples to India for testing,” added Aggarwal.

Industry officials say most leading pathological centers in India were going for international quality accreditation to enhance the “confidence level” among their existing and prospective customers.

Singh of SRL Ranbaxy said the College of American Pathologists had accredited his laboratories for conducting high-end pathological tests. “Outsourcing of pathological tests is different from outsourcing of other services because we deal with human lives. So there can’t be any compromise on the quality front,” he said.

“Many laboratories in India are following protocols and procedures that are of international standards. Overseas hospital chains are now beginning to acknowledge this. This has resulted in many of them exploring the possibility of sending samples to India.”



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