Outsourcing has long been a hot button issue in all segments of the life sciences. In the



medical device development and medical instrument prototyping industry, outsourcing initially took hold in the manufacturing phase, and companies raced across borders and oceans to capitalize on cheap labor for large profit gains. As the outsourcing wave continues to mature, this strategy is no longer strictly applied to manufacturing processes. Industrial designers are realizing that outsourcing other stages of Medical product design, most notably research and development, can result in large productivity gains, innovative products and competitive advantages.

More and more companies use outsourcing for product development to stay competitive in today's ever-changing marketplace. Outsourcing can help you with:

Long-term process-driven strategies

?Improve your business focus

?Access world-class capabilities-no need to develop specialized capabilities internally

?Free up corporate resources-staff can work on projects with higher priority or that better fit their expertise

?Reduce and or control long-term operating costs

Short-term technical needs

?Access experienced resources to solve specific problems

?Troubleshoot on-going process or technology concerns with a unique perspective and expertise

?Support your products through maintenance of documents and test procedures

How do you successfully use outsourcing?

Although outsourcing has become quite common, some companies still struggle with successful partnerships and are not obtaining the benefits that they expect from outsourcing. To be successful, you should:

?First, understand the strategic implications and vision for the project

?Second, obtain management buy-in and cooperation

?Third, promote and emphasize cross-company communications

More specifically:

1.Clearly define project objectives and strategic vision

2.Select the best outsourcing vendor to meet program goals

3.Develop a well-structured plan

4.Develop appropriate, efficient decision-making guidelines

5.Create effective performance measures

6.Establish and maintain clear lines of communication

How do you select an outsourcing partner?

Experts advise not to base outsourcing decisions solely on subjective preferences or cost. Consider the following elements when searching for a partner:

?Technical expertise

?Check for proven track records

?Management capabilities

?Check for financial stability and good credentials

?Facilities

?Check your outsourcing partner's infrastructure and technology

?Financial strength

?Cultural fit

?Costs

?Ask for references