Outsourcing Strategies

• Published in: Outsourcing Clinical Development pp. 1 - 28
• Main Authors: Thomis, Jeff, Desai, Smita
• Format: Book Chapter
• Language: English
• Published: United Kingdom Routledge 2006; Taylor & Francis Group
• Edition: 1
• Subjects: Management & management techniques; Pharmaceutical industries; CRO; Clinical Development Activities; Pharma Staff; Large CROs; CRO Selection; Strategic Outsourcing; Outsourcing Strategies; Tactical Outsourcing; CRO Staff; Execute Development Activities; Drug Development Process; Pharma Executives; Niche Providers; Pharma Companies; Clinical Development; Outsourcing Decision; Ich; CMOs; Identifying Core Competencies; Patient Recruitment; Preferred Supplier Relationships; CRO Industry; Drug Development; Large Pharma Companies; Pharma Sector
• ISBN: 9780566086861; 0566086867
• DOI: 10.4324/9781315599250-1

This chapter focuses on pharmaceutical R&D outsourcing and discusses clinical development outsourcing strategies, the challenges of assessing pharma core competencies, strategies for working with contract research organisations (CROs), and last but not least, preferred supplier relationships and strategic outsourcing, the hallmark of future drug development successes. It discusses the subjects such as resource planning, in sourcing versus outsourcing, decision hierarchy and accountability, importance of geography and potential for offshore sourcing and niche providers. Outsourcing in the pharmaceutical industry has traditionally implied converting the fixed costs of resources and infrastructure assigned to execute development activities, into variable costs. Such sub-contractors were either CROs or contract manufacturing organisations (CMOs). Some CROs are even taking this one step further facilitating risk mitigation during the drug development process. Rather, accepting risk here refers to the need for the CRO industry to drive and mobilise the change required in pharmaceutical industry outsourcing. Outsourcing is now an established part of the drug development process.