Automating the process in the industries has created a scenario to automate the instruments in the laboratories too. This has in turn leaded for a high demand of Laboratory Information Management System which is in the form of software. The demand has increased the scope and clients of IT based companies which offer solutions for the demand. The major client of lims software is Pharmaceutical and bio technology related companies all of which has research and development lab affiliated. China and India offer potential growth opportunities for sellers operating in the global lims market mainly because of the rapid strides done by the two nations in the technological competition. Global market for LIMS is highly competitive and is home to several leading players including Thermo Fisher Scientific, Labware, Labvantage, and Abbott. Many factors come into picture during the vendor selection process such as vendor brand name, reliable nature of the solution, and mainly on the degree of response to the client .As a result, vendors are required to keep updating their core competencies to ward off potential competition in the market. Many operations use only manual power to collect, analyze and generate report for various data. But with growing pressure to cut costs, increase efficiency and quality, the Laboratory Information Management System software developer must plan for more sophisticated lims to remain competitive. The ever growing volume of data created in laboratories along with increased business demands and focus on profitability have made LIMS vendors to increase attention mainly on how their LIMS handles electronic data exchanges. Attention is paid on how an instrument’s input and output data could be collected, how remote sample collection data could be exchanged, how the cost effective solution could be proposed and how PDAs or tablet technology could be integrated with the LIMS software.