Why Outsourcing Has Become a Trend in the Pharmaceutical Industry


With advancements in technology, many businesses and industries have leaned on the shoulders of outsourcing. This strategy has proven to be effective and productive even for the pharmaceutical industry.


Outsourcing is a practice in business that involves employing a third-party company to perform services or manufacture products.


Outsourcing In The Pharmaceutical Industry


It takes years to achieve successful drug research and development. Meanwhile, it also requires so much money. Also, the possibility of drug failure even after spending so much makes the pharmaceutical business a risky one.


Pharmaceutical companies have, therefore, adopted outsourcing to manage risks and increase productivity. This is especially effective because there are contract research organizations (CROs) and contract development and manufacturing organizations (CDMO) available to ease the outsourcing process.


Examples of services outsourced by pharmaceutical companies include:


  • Preclinical testing and clinical trial management
  • Biostatistical analysis
  • Analysis and Procurement of raw materials
  • Contract Laboratory testing
  • Transportation, Storage and Distribution
  • Sales and Marketing
  • Qualification and Validation activities


Why Outsourcing Has Become A Trend In Pharmaceuticals Industries.


  • Increased Efficiency

Outsourcing is like division of labour among capable companies. With different companies handling different parts of drug research and development, efficiency is sure. It allows each company to concentrate on their aspect of production. 


  • Operational control

CDMO Biologics services have the expertise to provide high-quality logistic services to pharmaceutical companies. They will use their managerial skills to ensure smooth operations. This in turn gives pharmaceutical companies operational control over their business.


  • Effective E-Commerce

An established online presence is relevant in the 21st century marketing scene.

The internet, no doubt, has been an effective marketing tool. Outsourcing digital marketing services will improve exposure of pharmaceutical products and link them to patients with ease. 


  • Quick Delivery Time

Outsourcing will allow for the simultaneous running of operations and therefore save time. Also, outsourcing transportation and distribution services will quicken the delivery of pharmaceutical products.


  • Reduced Cost

According to the International Organization for Standardization (ISO), outsourcing can help businesses reduce an average of 15 percent of their costs. Pharmaceutical companies will have fewer employees on their payroll. They will only have to pay the outsourced companies. Much less workspace will be needed and utility expenses will be low.


  • Increased flexibility

There are a lot of transformational technological shifts in the medical community and pharmaceutical companies need to keep up. With outsourcing, these companies can easily scale services and switch to CDMOs and CROs that are better equipped.


  • Increased Revenue 

When pharmaceutical companies employ the services of certified experts via outsourcing, there will be quality results.

Experts will adhere to the right protocols and policies and ensure smooth processes.


With the smooth running of operations in productions, productivity will be at its peak. This will allow pharmaceutical companies to serve more consumers. A wide consumer base converts to increased revenue. 


  • Quality production

Outsourcing ensures that quality production is continuous and always available. Sometimes, a company may experience a high turnover of employees. This can create a chance for inconsistency in the production process. Pharmaceutical industries don’t have to worry about inconsistent operations when they outsource.