Spotted an interesting article today about pharmaceutical companies and their outsourcing practices. Apparently a research company by the name of Cutting Edge Information collected data on pharmaceutical companies and percentage of their budgets that they were spending to outsource some of their research back in 2006. Comparing those original findings to new research data that they collect now in 2008 they found that across the board pharmaceutical companies were cutting their outsourcing budgets from an average of %65 to %35 now.
Turns out that these companies have not been getting the money saving features of outsourcing their research that they were hoping for. I have seen quite a few articles over the last year of companies cutting back the amount of outsourcing they do in an effort to save more money. I always thought that was the purpose of outsourcing in the first place to save money?
The window of opportunity for outsourcing companies seems to be shrinking just as quickly as the strength of the global economies. Everyday I read or hear about companies that are restructuring or downsizing and one of the first things they seem to mention as a cost saving move is to bring outsourced projects back in house. Cutting their work force where ever they can and requiring more versatility from their in house employees.
Companies around the world are trying to react to the downward trend towards a recession by quickly restructuring the way their companies are executing their business. Tightening the financial purse strings and bringing things back in house has been a popular move as of late. This recent article that I was talking about earlier goes on to talk about how companies are being forced to streamline the way they are doing business and cutting cost on everything. With no apparent end in site to the present financial crisis I expect that we will see a lot more industries other than the pharmaceutical companies looking to bring their business practices back in house.
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Outsourcing Being Cut In Favor Of Working In House…
Many companies are looking for ways to save money and surprisingly one of the ways is to bring back some of their procedures in house and stop outsourcing them….
[...] Outsourcing Being Cut In Favor Of Working In House [...]