Efficiency & productivity : beyond outsourcing, insourcing
Outsourcing may be seen as the balanced use of internal and external resources and has increased flexibility and reduced payroll costs. The result may be spare laboratory capacity and an increase in internal FTE costs. This diminishes the overall value of working with third party service providers. Insourcing offers “the best of both worlds” and so is becoming increasingly recognized as a practical and attractive solution for the pharmaceutical industry.
Insourcing has been described as “the in-house implementation of external but stable and cohesive research teams to support and accelerate internal research” and should not be seen as “a cheap and readily disposable labor force”.
Drivers to consider insourcing as an alternative to outsourcing:
- Optimization of total costs
- Better utilization of internal laboratory infrastructure
- Lower FTE rates
- Use of internal infrastructure
- Reduction in the fully over-head costs per internal FTE
- Transfer of some management and human resource functions to the service provider
- Partner proximity
- Simplified communication and confidentiality issues
- Research productivity
- Performance monitoring is an internal process
- Changes to priorities can be implemented immediately
Guidelines for the implementation of effective in-sourcing collaborations
NovAliX has learned three major lessons from in-sourcing projects with major pharmaceutical companies:
- Full sign-on of all stake-holders within the organization is essential.
- Recruitment should take account of hard & soft factors in order to achieve a fully functional well integrated team.
- Execution must be monitored by a dedicated insourcing manager to ensure that a high level of performance is maintained.
Identify organization specific factors such as the fit into established workflows, operational interactions with other parts of the organization and safety health and environment factors.
Understand the motivation and needs of the client so that the optimal proposal is presented. This includes an implementation plan specifying management, responsibilities, skill sets and experience required.
The numbers, levels and skill-sets should be well defined. Staff are selected that are able to respond flexibility to changing priorities, work in a focused and productive manner with good communication and reporting skills.
NovAliX seeks to integrate new teams into the client sites as fast and smoothly as possible using procedures such as an intensive “boot camp” immersion in the local site and organizational practices.
- On-going collaboration
The NovAliX insourcing manager continually monitors progress against targets and uses industry standard metrics for example to track the productivity of teams. Additional support and training are provided as needed.