Over the past decade, pharmaceutical companies have progressively turned to outsourcing to achieve their organizational and R&D goals. The main objectives have been cost savings and crunching cycle times. Today, the outsourcing of R&D processes, including patient-facing and back-end processes, accounts for nearly a quarter of the industry’s R&D spend. IT service providers present a compelling value proposition in clinical development outsourcing. They have built their life sciences domain expertise by working with some of the largest pharmaceutical companies in the world. They have gained experience across therapeutic areas such as oncology, rheumatology and diabetes, as well as across the life sciences value chain – drug discovery, development, manufacturing, distribution, sales and marketing.
Some companies have outsourced nearly 60% of their CDM processes to IT service providers and are enjoying over 25% reduction in costs and 10-30% improvement in cycle times.
- Prescriptive: The IT service provider supplements the pharmaceutical company’s short-term resource requirements.
- Deliverable-based: The vendor executes the project to meet the agreed deliverables using its own systems, processes and platforms. However, the IT partner’s engagement is limited to the project; it does not have any visibility into the sponsor’s strategies or future outlook.
- Functional Service Provider: The pharmaceutical sponsor outsources a function such as CDM or statistical programming to the IT partner who usually provides the processes and the technology platform.
- Outcome-based: The relationship moves beyond mere a vendor-client one, with the IT service provider helping drive the strategic direction for the sponsor.
- Ownership-based: Pharmaceutical companies collaborate with their partners to jointly develop a molecule. Both the sponsor and partner invest in the program, sharing the risks and rewards.
In this white paper, we provide a framework to help pharma companies evaluate where they are on the outsourcing spectrum and assess possible future outsourcing decisions. We also discuss the value they derive by partnering with IT service providers.
TCS is a Platinum Sponsor at the ‘Disruptive Innovation in Clinical Trials’ and ‘Clinical Outsourcing & Partnering World’. To find out more about the conference, click here.