Transformational Business Model
A mid-size pharmaceutical company had a legacy of collaboration with development partners with the United States; however with industry trends to outsource to India, China and Eastern European countries they were concerned that they may be left at a competitive disadvantage.
Through extensive blind benchmarking with eight major pharmaceutical companies, we were able to confirm cost differentials, profile best practices, identify lessons learned and success factors in adopting outsourcing business models in Asia.
A model for evaluating the risks factors and rewards of different collaboration models aided the client in selecting a virtual joint venture model with existing partners to share risk and costs. While cost differentials could be substantial, at least initially, it was found that for most companies the greatest lasting benefits were in access to talent, innovation and business agility.