Strategic Flexible Resourcing


By: Vaishnavi L --

12 December, 2013

Strategic Flexible Resourcing

Pharma/Biopharma companies are at an operational risk, due to a decrease in success rates; and innovation and financial risks, due to patent expiry of their block buster drugs. However, the cost of clinical development has increased steadily since the past two decades. This situation has pushed pharmaceutical and biopharmaceutical companies to convert fixed cost into variable cost through externalization, in order to get a talented pool of people onboard, for better innovation. Pharma/biopharma companies try to externalize clinical staffing, as staffing is a major cost in clinical development, owing to the involvement of various skilled people for drug development. Pharma/biopharma companies convert fixed cost into variable cost via externalization, layoffs and flexible resourcing. The change that clinical staffing services have seen since the past has moved its engagement from tactical to strategic in nature. This white paper will address: The benefits of strategic partnerships in the flexible-resourcing area Regional preferences (A case for APAC) Supply market dynamics that would facilitate this transition Pharma companies have relied on flexible-resourcing to control in-house staffing costs of their clinical development for a long time. Currently, flexible resourcing spend is fragmented, and is controlled by multiple category managers. This can be attributed to the fragmented nature of supply market. In the last 3ï¾Ãƒâ€šÃ‚Æ’??4 years, leading flexible-resourcing suppliers have expanded their capabilities, both organically and inorganically, in terms of scale (geographically) and scope (multiple services). Some pharma companies have experienced an increase of 10ï¾Ãƒâ€šÃ‚Æ’??15% in their flexible-resourcing spend, in the last 3ï¾Ãƒâ€šÃ‚Æ’??4 years, which reflects on the growth rate registered by top suppliers, such as RPS, Docs global. This has caused pharma companies consolidate spend, and frame a category strategy around this (moving from multi-service, multi-suppliers tactical engagements to consolidated strategic partnership).


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