Danish pharma company Novo Nordisk A/S is planning to increase staff strength in India upto 500 employees in the next few years.
Novo Nordisk look at India as a place where companies can hire highly educated workforce at a far lower price.
In India the workforce is cheaper and the education level is high, according to Novo Nordisk CFO Jesper Brandgaard.
“Currently we have about 100 employees in India, and I could well imagine that the number will grow to around 500 over the next three to five years,” Brandgaard told Danish daily Jyllands-Posten.
However, increasing staff strength in India does not mean a cut down its Danish workforce for Novo Nordisk, Brandgaard clarified.
“The positions we expect to create in India in the coming years will reflect our overall growth. It will free labour in Denmark, which can then be used for other things and this will enable us to use the saved costs for development of new drugs for example,” Brandgaard stated.
Novo Nordisk plans to add its Indian workforce because the company feels it is especially attractive in India that the higher-educated have been trained at English-language institutions.
So prospective employers like Novo Nordisk will get a wide range of tasks performed — from the payment to suppliers and accounting tasks, the management of major medical trials on humans to studying the patent situation of the medicines under development.
Moreover, the salary level is about 20-40% of a Danish salary, depending on the task an Indian employee performs.
Several Danish companies are increasingly outsourcing work to Indians, informed the Confederation of Danish Industry.
Though there are no statistics available on the number of foreign workers employed by Danish companies, the number of Indians being employed is on the rise after declining in the past few years, according to the confederation.
Outsourcing was often a way for companies to find labour that was unavailable in Denmark.
If they didn’t outsource to India, they would have lost orders and the profits they carry with them. In the end, it could have cost Danish jobs, analyst say.
Novo Nordisk has established an affiliated office in India. Meanwhile other Danish firms contract work to Indian firms.
Danish firms often employed staff in India to establish a market in the country.
Novo Nordisk started in India in 1990 when a liaison office of Novo Nordisk A/S, was set up in Mumbai. Prior to this Novo Nordisk A/S products were marketed in India through various other companies. Even then, Novo Nordisk was involved in creating awareness in diabetes care with the help of healthcare professionals in India.
On April 1, 1994, Novo Nordisk (I) Pvt. Ltd. was set up with its headquarters in Bangalore with 26 employees. It has now been rechristened as Novo Nordisk India Private Limited.
Novo Nordisk India’s portfolio of products and services deals with therapy areas in Diabetes, Human Growth Hormone and Haemostasis Management.
Novo Nordisk has a pact with Indian IT service firm Tata Consultancy Services (TCS). TCS has been providing Novo Nordisk with the data management of its clinical trials run in India for a number of years.
Novo Nordisk is one of a growing number of biopharma firms who have been actively implementing an outsourcing strategy as a cost-cutting and time saving measure and also has number of other such agreements in place in India.
Novo Nordisk has also tied up with domestic firm Torrent Pharmaceuticals with regard to a dedicated insulin formulation manufacturing and packaging facility.
Novo Nordisk was also looking to outsource almost one-third of its global research activities, including databmanagement to India within the next three years.
Headquartered in Denmark, Novo Nordisk a world leader in diabetes care. Novo Nordisk also has a leading position in areas such as haemostasis management, growth hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and markets pharmaceutical products and services that make a significant difference to patients, the medical profession and society.
Novo Nordisk has production facilities in six countries, affiliates or offices in 80 countries with a workforce of more than 26,553 employees (June 2008).