Outsourcing Information Technology Department - Essay Example

Outsourcing Information Technology Department Outsourcing Information Technology Department The pharmaceutical industry has experienced some fundamental changes during the 1990s with widespread consolidation through takeovers, mergers, as well as strategic friendly acquisitions. This trend is set to carry on and it has been foreseen by some stock-market viewers that by the year 2010 approximately 50% of the world pharmaceutical market will be taken by merely 5 or 6 “big” companies, each with a market share around 10%.

A recent report which reviewed three hundred company technology-decision makers pointed out that just twenty eight percent of associations suppose that IT outsourcing can offer major cost savings.  In addition, the study discovered numerous fundamental concerns in the minds of possible outsourcers.  Over half of respondents pointed out that a defeat of internal knowledge was a major drawback of outsourcing, while another forty-one percent designated that lower service quality was a main concern.

  Potentially the most worrying statistic for outsourcing companies is the fact that such concerns were considerably lower merely two years ago when only twenty-three percent pointed out service quality as a major drawback.  While this survey appears to some extent of an outlier statistically, it does agree with the recent inclination seen in many large companies who are getting IT work back in-house.  Such news elevates more questions concerning the sustainability of outsourcing and its long-standing effects on business.

The resource essential to hold up the extensive research activities can be described using numerous simple decisive factors. On the other hand, the resource necessitate for the drug product expansion activities is less expected and less able to be planned with accuracy. New compounds can fall short in both early as well as late stage expansion, irrespective of the superiority of the decision-making processes, and as a result there can be important peaks and troughs in the level of resource required over the longer term.

The pharmaceutical industry has conventionally favored to uphold a large part of its R&D activities in-house but is now more and more looking to outsourcing as a way of better balancing its internal core groups in addition to providing for better organization of the peak demands for resource. An additional driver for outsourcing is the augmented focus on core competencies do what the business is good at and get others to do what they are good at (Angell, 2004).The obvious barriers to outsourcing drug delivery device development explained earlier can be to some extent illusionary.

Through assortment of the right development partner, the pharmaceutical company can access the necessary as well as specialized expertise to add to its own internal drug product expansion team and save significant time in the general device development procedure. By setting up the right commercial as well as technical association with the development partner, the pharmaceutical company can profit extremely. The key to the victorious outsourcing of a drug delivery device development is in attaining mutual trust as well as respect between the partner organizations and to construct and expand a fully included development team.

Successful development partners view the relationships they build up with client organizations as long-term relationships, lasting long after the thriving achievement of a single development program (Angell, 2004). Pharmaceutical companies do have numerous alternatives on how best to perform a drug product development program, the use of a development partner is gradually more being seen as the most suitable and gainful way of building the device component of the drug product. The achievement of this approach is also becoming more and more apparent.

Reference:Marcia Angell, 2004: The truth about the drug companies. Random House, New York.