How Does Outsourcing Pharma Work?
Outsourcing pharma activities is something more and more businesses in the industry are relying on to stay competitive. Choosing the right outsourcing company is important, and deciding on which activities to outsource is a key first step.
In this article, you can learn more about pharma outsourcing and what types of software are used.
What is Outsourcing Pharma?
Pharma outsourcing is increasingly relied upon by pharmaceutical companies for a variety of different aspects of drug development, manufacturing, and distribution. This is because of the increasing complexities of the business and the growing need for companies to manage the strong global demand for medications.
Initially, outsourcing was used primarily in packaging and distribution of medications, but that is quickly changing as the complexity of manufacturing medications grows. Now, pharmaceutical companies are using outsourcing more than ever for value-added aspects of development and production, too.
For instance, it is becoming fairly common for pharma companies to outsource the actual research and development and the manufacturing of medications.
Here are a few areas pharma companies are outsourcing:
- Research and development: Some R&D activities are becoming outsourced on a regular basis.
- Sales: Sales is no longer in-house exclusively for many businesses.
- Production: Businesses can certainly outsource production, too, enabling themselves to scale quickly in response to peak demand or manage normal production needs on an ongoing basis through a third party company.
- Packaging: Once medications are manufactured, they need to be packaged and prepared for distribution and sale. Packaging is one area where pharma companies have consistently used outsourcing for years.
- Distribution: Distributing medications to buyers is another area businesses can outsource. Large hospital groups, pharmacies, and other organizations that frequently buy medications may be the recipients of shipments by third party distributors.
Nearly any aspect of the pharma business can be outsourced---depending on capacity, concerns about protecting intellectual property, production requirements, and other interests. Companies can freely outsource to other organizations, although they may need to do their own due diligence and thoroughly research any suppliers and partners they are considering to ensure the end product is as close as possible to what they're looking for.
How Does Outsourcing Pharma Benefit Your Business?
Outsourcing pharma has several important benefits, including:
- Managing costs: Outsourcing can help pharma companies manage their own costs and possibly increase profit.
- Find talent: Particularly in locations where pharma companies might otherwise face challenges finding, hiring, and retaining talent for R&D and other activities, outsourcing can be a viable solution.
- Improving competitiveness: Staying competitive is a top priority for most companies, and outsourcing can help with that.
- Scaling workforce: Outsourcing makes it easier to scale your workforce up or down to meet the changing demands of your business environment. This makes your organization more flexible.
- Focusing on core business: It's possible to focus on core business areas instead of becoming distracted or spread too thin by trying to meet a variety of different demands and needs.
For these and other reasons, many businesses ultimately choose to outsource part or all of their business activity. Outsourcing has the potential to make it much easier to do business effectively.
What Software Do Pharma Outsourcing Companies Use?
Pharma outsourcing companies may rely on a wide variety of different software systems, but one consistent area almost all companies needs is managing information and communications. Pharma companies and outsourcing businesses both have this in common. Using software can help to make communications more productive and effective, and make sharing information easier.
A few software systems used by pharma companies:
- UCaaS (Unified Communications as a Service): Communications can use a variety of different platforms. UCaaS brings all of these communication methods together into one place so organizations can become more productive.
- VoIP (Voice over Internet Protocol): VoIP is Internet-enabled phone service.
- Cloud hosting: Applications in the cloud make it easier to gain access to advanced applications and infrastructure, even if neither of these are onsite.
Getting Started with Pharma Outsourcing
Outsourcing is increasingly common within the pharma industry. By choosing a trusted third party company to outsource to, pharma businesses can save money, scale their organizations, and find other benefits. Having the right software makes it possible.
Your business has enough on its plate. Outsource what makes sense for your business, choose a world class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.