Author: Timothy Blair, Director, Global Business Development, NAMSA
Growing regulatory burdens and increased expectations of growth have pushed industries such as Pharma and MedTech toward high-level consolidations as well as toward strategic outsourcing partnerships. By doing so companies have reduced costs, improved operational margins, increased flexibility, expanded geographical reach, and increased access to both broad and focused areas of expertise. Strategic partnerships with CROs can of course carry risks, although history suggests that time to revenue, operational flexibility, and cost reductions far outweigh those risks over time. Companies should choose relationships that suit their strengths and find potential partners with experience, longevity, and reputation. Tactical outsourcing can create some simple efficiencies, and strategic outsourcing can redirect resources toward core competencies and strongest value-creation activities, but “transformational outsourcing” can redefine the way the business operates and can achieve rapid, sustainable improvements by taking advantage of innovation and evolving business models.