Top 6 Reasons to Consider Outsourcing Your Pharmaceutical Testing Requirements


Pharmaceutical testing is vital in ensuring the quality of drugs and equipment, improving the safety of users, and enhancing the credibility of brands. Institutions, such as hospitals, clinics, and other pharmaceutical companies, require testing for Research and Development (R&D) and related services.

Pharmaceutical testing requires specialized staff, equipment, machinery, and facilities. The testing must meet the relevant regulatory requirements. This, therefore, poses challenges to companies whose core services or operations are not testing.

Outsourcing non-core services is a widely accepted and beneficial way of doing things.

The following are 6 reasons why you should consider outsourcing your pharmaceutical testing requirements.

1) Cost Optimization

Organizations are always looking for ways to optimize their costs. Pharmaceutical testing is resource-intensive and this can affect a company’s bottom line negatively.

Here’s a breakdown of recurrent costs that companies may save by outsourcing pharma testing:

  • Human resource costs– A department of testing must have the required staff. The associated costs include wages, medical benefits, administration costs, office space rent, etc. If a company outsources pharma testing, it can manage with quality assurance staff alone, thus saving on recurrent costs.
  • Training Costs– To effectively handle new equipment, staff members require additional training from time to time.

By outsourcing, costs related to pharmaceutical testing can be saved and channeled to other areas in an organization.

2) Leveraging the Expertise of Specialized Companies

Testing is an area that has a minimal margin of error. Having your department (probably new) may not produce quality work immediately. Outsourcing helps you to get ready-made or quick solutions from an institution that has years of experience.

For instance, if a hospital wants to develop a testing kit for a local disease, it can benefit from an already established testing organization. A specialized lab will have existing template prototypes and simulations that can help complete the testing faster and more efficiently.

In a nutshell, outsourcing taps into: –

  • Competent and highly experienced workforce
  • Fully equipped research and development labs
  • Existing research and development findings

3) Establish Other Partnerships

The networks and partnerships of companies are also considered part of intangible assets. Outsourcing can be one way of establishing such partnerships that prove to be mutually beneficial. Below are ways in which such partnerships benefit organizations: –

  • Customer Referral System– Outsourcing creates a win-win situation where pharmaceutical testing facilities reciprocate by recommending you to relevant clients. The two entities can work based on profit-sharing formulas for pharmaceutical testing clients and foster a good professional relationship on a reciprocal basis.
  • Strategic Investment Opportunities– If pharmaceutical testing is a non-core activity, a company can acquire a minority stake in the testing company. This can help to influence the decisions in the testing company and enhance the quality of the outsourced services.

It can also mean more non-core revenue for your company. Outsourcing of pharmaceutical testing can be the basis of expanding your network and collaborations for business growth.

4) Focus on its Core Business

To enhance service delivery and optimize performance, subsidiary services that prove difficult to execute can be outsourced. This can be done in line with the overall business mission. The resources saved by outsourcing pharmaceutical testing and R&D can be channeled for enhancing the core services.

Ultimately, this strategy can affect the upscaling of service delivery positively. This can apply to private medical facilities, pharmaceutical shops, or related firms whose resources may be limited.

5) Enhance Competitiveness

Big companies and brands are in direct competition with small players in the industry. Due to the financial limitations of small players, they may not be able to afford such facilities, qualified personnel, and relevant regulatory approvals. These small players can tap into the experience, capital investments, and human capital of an experienced pharma testing company.

Consequently, these small brands can receive much-needed pharmaceutical services at a fraction of the cost. This helps to ensure that small companies can offer quality and reliable services matching other big players.

6) Eliminate Capital Expenditure

Investing in an in-house pharmaceutical testing facility involves the construction of labs/testing facilities, acquisition of machines and equipment, and may involve the purchase of land or leasing agreements. These capital outflows may require taking on a huge debt.

Related costs such as obsolescence, depreciation, and routine maintenance can also distract the company from achieving its core objectives.

Is it Wise to Outsource Pharmaceutical Testing?

Whether it’s a small or a big business, outsourcing pharmaceutical testing is beneficial in many ways. One of the key benefits that accrue from outsourcing is a reduction in capital and recurrent expenditure.

Besides, brands can tap into already existing research, networks, human capital, and working solutions. Therefore, there’s immense value in outsourcing your pharmaceutical testing requirements.


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