Outsourcing the responsibilities of your company to third-parties is becoming more appealing to brands across the globe. In fact, in the UK in 2019 70 per cent of all businesses were outsourcing to other companies.
In the pharmaceutical industry, where costs can be high and time pressures intense, outsourcing is increasingly becoming a useful tool for companies looking to provide high-quality services for their patients.
Third-party companies like WuXi Advanced Therapies, a cell and gene therapy CDMO, provide solutions for those companies seeking to boost their productivity.
There are multiple advantages to outsourcing parts of your operations, and here you can find the five main benefits.
Outsourcing Saves Money
By identifying key areas of your business that can be outsourced, you can save money. This will boost your profits and reduce your costs.
Rather than employing – and paying – a team of people to run an operation, outsourcing is a substantially cheaper way of providing a service.
On average, labour costs total 70% of all business spending. This makes outsourcing an attractive opportunity for savings.
The more employees you hire, the higher the building, electricity, uniform and equipment costs too. You can suppress your spending by identifying areas to outsource.
Outsourcing Saves Time
For your staff to effectively execute a task, they need time to be trained and gain expertise.
In the pharmaceutical industry, staff training and development can take months, or more likely years. This limits the speed at which your company can grow and will limit you achieving your output goals.
The employees at third-party companies are already trained and educated in their specialist area, enabling them to successfully complete tasks immediately.
Outsourcing Allows Flexibility
The needs of any business will change over time, causing fluctuation in the scale and scope of your operations.
For pharmaceutical companies, these needs may change due to such issues as an emerging virus or a drug shortage. These changes can require dramatic growth to occur at speed.
Outsourcing enables companies to quickly scale up or down to meet the needs of their patients.
Outsourcing Improves Services
Customer service scores are an important tool for measuring the success of a business. Companies with poor customer service won’t survive for long in a competitive environment.
Outsourcing some of your operations to third-parties improves the speed at which services and products can be provided. Better turnaround times will mean notably higher customer service scores.
For example, you may outsource your customer support team needs – bringing in a different company to answer phones and reply to emails. Patients will notice speedy service and respond positively.
The Bottom Line
Businesses change quickly, and that couldn’t be more true than for pharmaceutical companies.
Outsourcing some or most of your operations will save you money by cutting staffing costs, as well as save time required to train those team members.
Outsourcing the needs of a business is becoming more popular as companies note the major advantages of growth and longevity in an increasingly competitive market.