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Pharma Tech Outlook | Friday, December 03, 2021
As R&D activity accelerates and the labor market becomes more constrained, choosing the appropriate clinical workforce model or combination of models, whether outsourced or "insourced," has become a complex and high-stakes task.
FREMONT, CA: For years, the traditional employee model, long preferred for key strategic positions in pharma and biotech, has been losing ground to alternative workforce models that more accurately reflect the varied resource demands and flexible personnel requirements of a modern R&D program. Due to the requirement to rapidly scale up and down in response to changing pipeline priorities, in-house pharma roles have been replaced by contract research organization (CRO), contract research, and consulting employment. CROs can give the stability that pharma used to supply and that certain employees demand through dynamic pipeline management, in- and out-licensing of assets during development, and financing challenges at pre-revenue biotech startups. This, combined with other labor and industry challenges, has made it more challenging to locate seasoned operational leadership and highly competent functional experts looking for and available to join permanent in-house clinical teams.
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Contractors and consultants, the other primary "insourcing" model, address a number of the issues that render the employee model obsolete or impractical. Functional specialists can be hired temporarily to either improve the oversight of the functional suppliers executing project work or perform the work themselves. However, the sheer magnitude of resources required by numerous research necessitates outsourcing to scale up swiftly and complete the projects.
Traditional full-service outsourcing remains an attractive and sometimes necessary option for study sponsors, particularly those unable to do the functional or management activities themselves. Despite its widespread use, the advantages and downsides of full-service outsourcing can be challenging to discern. They must be examined in the context of a single study's unique goals and limits. Large pharmaceutical corporations no longer reserve their in-house teams for the most crucial initiatives. They frequently allocate in-house employees to smaller, more complex, and early-stage initiatives and increasingly rely on contract research organizations (CROs) for large clinical trials. Even among global Big Pharma companies, most project-level outsourcing follows the CRO's methods, while the degree of system sharing and integration varies. While corporate sponsors increasingly acknowledge that the CRO's procedures necessitate the CRO's tools, sponsors continue to desire customized access to their data, KPIs, and reports. However, few small sponsors have completely defined processes for all parts of trial execution. It is rarely cost-effective for them to adopt all e-clinical systems internally; they must understand these tools and describe requirements to the CRO.
At the nexus of outsourcing and insourcing, the functional service provider (FSP) paradigm arose. Rather than outsourcing a complete project to a single CRO, sponsors—typically midsize or larger enterprises capable of managing and supervising numerous contractors—can achieve additional efficiencies by keeping some services in-house and outsourcing others judiciously. While the advantages are evident, the internal requirements might be relatively high. Managing several FSPs can make process handoffs more cumbersome and present a slew of hazards. Coordination of a complicated clinical project involving numerous function-specific vendors can impose a significant management burden. If operations across a collection of FSPs are not carefully coordinated, sponsors may face an expensive post-study standardization project to organize and harmonize the diverse work deliverables.
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