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Pharmaceutical Firm Uses Outsourcing to Cut Costs Dramatically

Summary
Globalization continues to be an important issue in the internal investment and outsourcing strategies of the major pharmaceutical and biotechnology companies. The client, a large manufacturer of consumer pharmaceuticals, needed to improve their outsourced relationship, and achieve a higher level of service to support growth, improve quality to the end user, and establish a robust methodology enabling them to operate collaboratively with an offshore provider.

Client Challenge
The client faced global competition, reduced patent protection, the rising cost of drug development, and Food and Drug Administration regulation. Reducing costs was essential to stay competitive. While it embraced outsourcing, the client was concerned whether the offshore provider had industry best practices in place in its governance structure, scope of services, pricing mechanisms and other areas of the relationship.

How Alsbridge Helped

  • Developed an approach and procedures to assist the client in defining the scope and configuration to support an offshore Human Resource and Payroll strategy
  • Helped develop criteria to identify functions to be included in the client’s offshore strategy, identified areas for significant cost savings, and created a methodology for interpreting organizational risk and value
  • Provided a high-level assessment of potential Information technology savings that could be realized at the same time.

 



"From a services and commercial perspective, Alsbridge brought a lot of rich experience to the table, and was instrumental in many cost savings along the contract negotiation path. I felt very confident that Alsbridge was covering our interest very well."
–John Chelius, Director of Commercial Management, IT Services (US)