Retake Control, Shorten Cycle Times, and Cut Costs With Insourcing

Michael P. Trova, Ph.D., Senior Vice President, Chemistry, Albany Molecular Research Inc. (AMRI)

Outsourcing has played a vital role in making R&D more flexible and efficient for the past 15-20 years, but in some situations the challenges involved with the model offset its well-established benefits. In the past, companies in this situation had to choose between persevering with outsourcing or pulling work back in-house. Now; however, there is a third way: Insourcing.

The model is a fusion of the best elements of outsourcing and conducting in-house R&D. Work takes place at the pharmaceutical company’s facility, ensuring existing capacity is fully utilized and the firm has close control of its operations. Employees are provided and managed by a vendor, giving the pharmaceutical company — which also can be referred to as the ‘host’ company — extra staff to work alongside its own teams without the responsibilities associated with hiring and managing new people. With the insourcing model, staff members from the vendor and host company work together at one site operating as a single team.