The insourcing model, where a vendor-managed labora- tory service team oversees a scope of work directly at the client site, has gained momentum and become a strategic
drug development option in the biopharmaceutical industry. This
model can not only assist organizations to cope in today’s increasingly challenging R&D landscape, but can also provide a
more flexible and cost-effective route to putting in place teams of
specialists that can help companies meet the current demands for
shorter development timescales.
This article will offer insights on the current insourcing landscape and assesses the key drivers for the adoption of the approach. The article will also consider the important factors for
organizations in selecting the ideal insourcing partner.
THE TEMPORARY WORKFORCE QUANDARY
In today’s unpredictable economic environment, more organiza-
tions are choosing to refrain from adding employees to their payroll
and are instead turning to external sources to meet the demands of
their expanding pipelines. Biopharmaceutical companies typically
rely on three staff types to ensure the proper use and manage-
ment of external workers that would be offering services at their
sites: temporary staffing, consultants and contractors, and external
service providers or managed service providers. The first category
of temporaries are co-employed and managed by the client; the
second two categories are exclusively managed by the vendor.
However, history has shown, the use of a temporary workforce
poses several challenges. Organizations that employ temporary
workers face many restrictions in avoiding co-employment con-
cerns, including turnover and continual training. They are also sub-
ject to strict Internal Revenue Service (IRS) guidelines, such as the
20 Factor test, which are used to determine whether or not a con-
tingent worker should really be considered as an employee. Tem-
porary staffing also does not provide security for long-term needs,
as there is typically a limit of tenure for temporary employees.
Going All In: Drivers for Insourcing
Professional Scientific Services
As the industry comes under increasing time and cost pressures the trend toward
insourcing laboratory services continues to grow.