Pharmaceutical industry is in a constant state of change. In the past, the companies used to create all the products internally and hence limiting the access to information and resources to third parties; This however is changing, in-house resources are getting overused with very little output. Patient recruitment and medical staff account for almost seventy percent of the total clinical cost that is required to introduce a drug to the market. Threat from generic,

low productivity R&D process, higher cost for the approval of product and similar imports are the major market feature for declining pharmaceutical profits. Global outsourced R&D expenditure is increasing every year leading to rise in business prospects for Contract Research and Manufacturing services. Outsourcing the technology department in a pharmaceutical company can have many advantages, a few are as follows. – Outsourcing reduces the overall costs by 30 percent to 35 percent – Discovery work outsourcing results in very fast results with minimal cost, and also reduces drug development cost – Improves manufacturing efficiency and techniques hence streamlining the process – Minimizes investments in capital-intensive facilities – Improves net earnings and cash flow; – Divert resources to focus on other competencies like marketing Outsourcing can allow pharmaceutical companies to establish consistency and efficiency across vast international networks of commercial supply chains and manufacturing organizations. If managed and executed strategically, outsourcing has every potential to add value to the shareholder value and keep the investor community happy.