SAN JOSE, CA--(MARKET WIRE)--Oct 7, 2008 -- Persistent Systems, one of the leading providers of Outsourced Product Development (OPD) services, today announced that it has been cited by Health Industry Insights, an IDC company, as a top twelve IT outsourcing vendor of manufacturing and supply chain services to the life sciences market.

Health Industry Insights compared and contrasted vendors across four major components -- industry expertise, delivery expertise, customer references and business strategy -- as well as 22 application-specific areas of expertise. Persistent was ranked among the top six in customer references, receiving high scores in customer satisfaction and the total level of value delivered to customers. The report also noted that Persistent ranked in the highest category of the quantity of previous life sciences engagements in laboratory information management systems (LIMS).

"Pressure for life science companies to reduce costs has risen significantly over the last five years," said Eric Newmark, research manager, Health Industry Insights. "As drug patents expire, product pipelines need bolstering and generic companies continue to encroach on branded pharmaceutical companies' market share. These issues, coupled with a sense of urgency to protect gross margins, have driven pharmaceutical companies to examine IT outsourcing and off-shoring with increased interest."

Noting the company's specialized focus on Outsourced Product Development (OPD), Health Industry Insights found that 95 percent of Persistent's work is in application outsourcing. The report also states that industry expertise was an important component to consider while evaluating service providers like Persistent amongst others, who have worked over various application and functional areas like data management, analytics, data warehousing, integration and Business Intelligence. The report also cited that more than 50 percent of Persistent's customers earn over $1B in revenues.

According to the report, IT outsourcing has become an essential component for every pharmaceutical company to reduce costs, automate processes and ease global expansion. Health Industry Insights cites that outsourcing is also critical to most long-term corporate growth strategies.

Key statistics highlighted in the report include:

 
--  Between 2005 and 2010, total IT services spend is expected to increase
    nearly 45%, averaging between 7% and 8% annually.
--  Systems integration work is responsible for the majority of IT service
    spend, accounting for approximately 40%, though it is expected to drop to
    37% over the next three years as more application consolidation and
    rationalization efforts occur and less integration work is needed.
--  Outsourcing will account for 23% of overall IT services spend by 2010.
--  Of pharmaceutical companies, 48% outsource some facet of
    manufacturing or supply chain IT, and 38% expect it to increase during
    2008.

"Persistent Systems has focused on the Life Sciences Market for more than eight years," said Dr. Anand Deshpande, President & CEO of Persistent Systems. "We've adapted our services to meet our customers' changing needs and it is rewarding to be recognized as a leader in the market, especially in the area of customer service."

Health Industry Insights is regularly called upon by its customers to provide guidance and strategic support to companies as they navigate vendor evaluation and selection decisions. The full report is available on Health Industry Insights' website at: http://www.healthindustry-insights.com/HII/getdoc.jsp?containerId=HI212871.

About Persistent Systems

Established in 1990, Persistent Systems is recognized as an award-winning technology company specializing in outsourced software product development. With 4,000 employees, innovative business models, and reusable assets and frameworks, Persistent helps its customers increase revenues and margins, and enhance brand value. Persistent Systems has delivered over 2,000 software product releases to their 170+ customers in the last five years. It has developed proven processes for the entire product lifecycle which reduce time to market while delivering consistent quality and customer satisfaction -- as evidenced by customer partnerships that span many years. www.persistentsys.com

     Media Contact
     Laurie Gibson
     B3 Communications
     650-969-0764
     Email Contact