Leading Pharma Company Leans on Consulting Service Provider

Extends outsourcing engagement to include support services for around 7,000 users

Extends outsourcing engagement to include support services for around 7,000 users

Irvine, CA — November 21, 2003 — Business integration and development technology provider Magic Software Enterprises announced this week that its wholly owned subsidiary CoreTech Consulting Group, LLC, of King of Prussia, Pa., has closed a new two year $2.2 million contract to provide support services to one of the world's largest global pharmaceutical companies.

In this outsourcing engagement, CoreTech, a provider of consulting services and solutions to the Life Sciences and Financial Services industries, will provide support services to a client base that stands today at around 7,000 end-users. Because it demonstrated technical and service capabilities along with flexibility and client focus in past engagements with this customer, CoreTech said it was requested to widen the dimension of the services it provides and extend the contract for an additional two years.

"Pharmaceutical companies are under pressure to streamline operations, increase efficiencies and improve results while increasing the speed of product development and approval of patents," said Mark Redlus, CEO of CoreTech Consulting. "We provide the outsourced services that enable companies to free up their IT resources to focus on strategic initiatives and business growth.

By working with CoreTech, the pharmaceutical organization said it has been able to offload a tremendous amount of end-user support from its own IT staff. At present, the CoreTech staff handles close to 10,000 unique service requests per month.

According to analysts at Gartner Dataquest, spending for software and external services in the U.S. pharmaceutical industry will outpace spending for hardware, network equipment and internal services. They have projected that by 2005, outsourced services spending is expected to account for 58 percent of total external spending.

"Lately, we are seeing renewed demand for outsourced IT support services in the United States, especially in highly competitive areas like the pharmaceutical industry," said Menachem Hasfari, CEO of Magic Software. "With its support and coordination services, CoreTech is positioned to expand its contractual service agreements with existing and new customers."