The concept of outsourcing dates back to the 1700s, and even after centuries of industrial and technological revolution, it is still an integral component of the business world. Outsourcing as a business practice has stood the test of time for one simple reason- it gets the job done professionally at a reasonable cost.
Outsourcing has ingrained itself into several billion-dollar industries with the Pharmaceutical and Biotech industry being amongst them. Any company which has the acronym CRO (Contract Research Organization) attached to it has been going through a bullish phase for several years. This is because a lot of pharmaceutical companies are looking to outsource their clinical research to such organizations.
But, as there are so many players in the market, you have to ensure that you choose a company that is the right fit for you. Let’s have a look at a few things which you must consider, before outsourcing your clinical research to a CRO:
#1. Cost of employment
Employment costs are a key factor to consider when you are planning to outsource your clinical research to a. It involves analyzing and comparing the actual value of the outsourced services to the internal cost. To assess the precise differences between the two of them, you must take these items into account- benefit-cost, hourly wage, and state income taxes, to name a few. In most cases, CROs are more cost-effective than internal processes.
#2. Evaluation of time needed to complete a task
One of the most important things to consider when you are outsourcing your clinical research to a CRO is to evaluate the time they take to complete a task. To examine this factor thoroughly, you will need a well-defined protocol in place which could translate the type of work to be performed and the time required to execute it. Both the CRO and the management would have to agree on the details of the protocol.
Once a common consensus is reached, you can evaluate what is more efficient- outsourcing clinical research to a CRO or getting it done within your organization.
#3. Support resources
Implementation of clinical research within the organization can become an expensive concern. This is because of the additional support resources you will have to bring on board.
However, outsourcing the clinical research to a Contract Research Organization can be relatively inexpensive. This is because they include the support cost into their pricing models and also offer you choices such as how they will interact with your designated research manager hence, making it a better option.
#4. Utilization cost
An important point to consider while outsourcing your clinical research to a CRO is to evaluate the cost of keeping clinical staff in the organization at a time when they are underemployed. Timing the need for such resources precisely across different trials can become difficult, and this why most pharmaceutical companies prefer hiring a CRO. These organizations allow clearing out the utilization gaps, as and when they occur.
#5. The time needed for recruitment
When we compare outsourcing to internal resources, we find CROs can give faster results. Let us explain:
If a company carries out clinical research, they will have to fill certain positions in the organization. This staffing can take up to 5-6 months while in a, there are several trained candidates available to immediately fill any position that comes up. Therefore, the time required for recruitment is shorter in a CRO.
Once you evaluate all the factors thoroughly, you can decide whether to carry out your clinical research through a CRO.