The processing and management of biological information with the help of computer technology in order to draw some analytical inferences is called the science of bioinformatics. It is specifically meant for the biological research. Bioinformatics is an interesting sector, as it is no longer confined to concepts of traditional biology. The use of electronic equipment and computers has changed the state of this sector. The industry is exceedingly disjointed and of late there has been formulation of different strategic alliances to meet their basic needs. Such alliances have become very common in European and U.S markets. After the entry of the IT and Pharma giants into this field the competition has taken a major change. The unique convergence of biotechnology with IT has lead to the emergence of entirely new field called IT-Bioinformatics where issues like data management, data standardization, and patents continue to dominate the outsourcing services industry. The offshore outsourcing services are budding at the right time when the bioscience companies require IT driven companies to empower outsourcers especially with respect to analytical applications and middleware that is integrated with various databases and systems to distribute information to researchers.