Virtual JV vs Outsourcing
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.
Researched and benchmarked trends through extensive interviewing of eight major pharmaceutical companies, confirming cost differentials, profiling best practices, lessons learned and success factors in adopting outsourcing business models in Asia.
Delivered a model for evaluating the risks factors and rewards of different collaboration models, including 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 access to talent, innovation and business agility.