"Our expert analysis and our thinking on the issue that affect most in business"

Why Pharmaceutical Companies are Betting Big on Outsourcing?

Why Pharmaceutical Companies are Betting Big on Outsourcing?

The healthcare industry has gone through a transformation in the past few decades. With the increasing emphasis on contract manufacturing or outsourcing and the rapid adoption of innovative technology, the rules of the game are changing.

What is the Need of outsourcing in Pharmaceutical Industries? 

Well, if think about the issues that are pushing the pharma industry hard, then two things pop up.

One is massive spending on Research and Development, and another is reducing the return on investment.

To add fuel to the fire, governments and regulating bodies are constantly building pressure on pharma companies. Maintaining efficiency across the value chain is one more challenge.

To ease all this, outsourcing comes out as a one-stop solution. Prominent benefits of it are:

  • Enhancement in operational efficiency
  • Expansion of geographical presence
  • Increasing therapeutic expertise
  • Providing on-demand service


Since the benefits of outsourcing are so prominent, no wonder the trend is showing compound annual growth. Dodder Engineering Consulting is a prominent service provider that helps organizations across all sectors to define a better future.

What are the reasons pharma companies vouch for outsourcing? Let’s understand that.

The increasing impetus for outsourcing

We have already discussed that outsourcing helps pharma companies in many ways. It saves resource costs, overhead costs, and infrastructure costs. Hence, cost-reduction is surely the primary impetus.

However, in some cases, the driving force is different. Pharma companies are pushing for outsourcing because they want to improve on quality and reduce time to market. 

Outsourcing companies are trying to become strategic partners instead of being merely outsourcing partners. They are not happy with limiting their scope to just a service or commodity provider.

Pharma companies prefer long-term relationship

Another important reason why pharma companies prefer outsourcing is they try to build a long-term relationship with the vendor. Earlier, companies used to have several outsourcing partners. Nowadays, they want to have a limited number of outsourcing partners.

These partnerships and collaborations increase efficiency in the value chain and bring down the cost. It emphasized the need for outsourcing in the Pharmaceutical Industries.

The advantage of bundling

What does it mean? It is the set of services outsourced in a bundled form to achieve the efficiency of outsourcing. It offers an end-to-end solution and reduces the operational cost considerably. Not only that, but the pharma company also gets better control and visibility. It adds to the portfolio of services without adding expenses.  It is a flexible model that makes outsourcing further fruitful. 

Services that are being asked consistently by pharma companies are analytical and testing, clinical trial management, solid dose production, API production, formulation development, and so on. 

When companies like Dodder Engineering Consulting offer top-class pharmaceutical outsourcing models, it is quite easy for pharma manufacturers to avail the incredible benefits of it.


Due to the increasing pressure on profitability and performance, there is a worldwide need of outsourcing in the Pharmaceutical Industries. It is a flexible and effective business model. Dodder Engineering Consulting is reputed name for a comprehensive service package that brings higher business benefits for small, medium, and large-sized pharma companies.


"With our knowledge & tools, we can accomplish your goals"