The trend towards outsourcing

In recent years there has been a steep increase not only in global competition and in the requirements imposed by licensing authorities, but also in the necessary scale of plant modernization and in the general cost pressures on pharmaceutical and biotech companies. Rising process costs are paralleled by ever more specific demands on pharmaceutical companies‘ expertise, as a result of which more and more firms are reconsidering their strategy and outsourcing processes at all stages of product manufacturing. These companies can benefit from the core competences of contract manufacturers by devoting their attention solely to development and marketing and can reduce their own high investment costs.

Companies which outsource sub-processes can be split into two categories: For some it is merely a short-term measure to overcome bottlenecks, albeit one for which there is frequently a price to pay in terms of efficiency. However for an increasing number of companies, outsourcing has become an issue of strategy and therefore integral to fundamental business decisions.

Trend outsourcing Bild

An Accenture study conducted in the spring of 2004 which polled pharmaceutical and medical product company managers with experience of outsourcing revealed that satisfaction rises in line with increasing outsourcing experience. These companies know how to set about a partnership in order to maximize results. Among more experienced companies in particular, a reduction in costs was cited as just one of the potential benefits. Other factors such as an increase in market share or a reduction in time-to-market were perceived as being of at least equal importance.