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In this paper we discuss the rationale behind biopharmaceutical outsourcing. We then discuss the benefits, challenges, current trends and market opportunities. From January 2005, India has agreed to comply with the product patent protection in accordance with the obligation under the TRIPS Agreement of the WTO. This has created new opportunities as well as challenges for the Indian biopharmaceutical companies. We analyze the value proposition of India as a suitable destination for outsourcing in biopharmaceutical industry in this new business environment. This research will help managers to understand the benefits of biopharmaceutical outsourcing along with its challenges under the current business scenario. Hence, this study is timely and relevant from both an academic and a practitioner’s perspective.

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