Tripos falls victim to Indian outsourcing

[OhioChick]

ST. LOUIS POST-DISPATCH
11/19/2006

After losing one contract after another and cutting staff repeatedly, Tripos Inc. Chief Executive John McAlister had to face facts: The Brentwood-based company's chemistry-services unit couldn't keep up with low-cost competitors in India.

Pfizer Inc., the world's largest drug maker, in 2005 wrapped up a four-year, $90 million contract that had been the unit's primary support. It decided not to renew the deal — and similar contracts with at least two of Tripos' U.S.-based competitors — instead taking its business offshore.

Other big pharmaceutical companies with which Tripos had been negotiating followed Pfizer's lead, McAlister said.

"That scenario repeated itself well into this year. Each time, we were led to believe we had capabilities that were of great interest" to a big pharmaceutical firm, he said in a conference call with analysts.
But after negotiations that consumed Tripos' time and money, "each time, the prospect took its business to a less-costly labor venue either in Asia or Eastern Europe," McAlister said.
http://www.stltoday.com/stltoday/business/stories.nsf/0/0D53DA9F2A6E7F018625722A0010C0BB?OpenDocument

~snip~ The lure is a well-educated, low-cost Indian work force, coupled with that country's decision in 2004 to respect international intellectual-property law — a move designed to seek Western pharmaceutical business, rather than pirating its discoveries to sell generic drugs, as in the past.

[lovuian]

1. Mark my words these Corporations are creating their own

Doom ... So smart and yet so dumb

[PassingFair]

2. Low wage conservative corporatism strikes again.

I have started sassing back when people here
in the US blame the unions for all of our
manufacturing woes.

No more.

People are starting to listen, too.

I think we will see a rebirth of
union power, but it will take another
5 years or so.