Outsourcing current trends

The extent to which the current trend toward mergers and acquisitions continues in life sciences, and also the extent to which larger pharmaceutical companies outsource research and development to smaller companies. It may become necessary for rapid integration of systems between companies that had previously had no relationship at all, and for the secure integration of particular systems between collaborating companies. 

Circumstances may require a shift to outsourcing from local sourcing, which may involve higher costs but also higher profits, if the resulting decisions are made quickly and adapt to current trends. For example, moving from a promotion-intensive retail environment to an every-day-low-price format may improve or decrease profits, depending on the context. The models and tools we will discuss will enable these decisions. 

Even without the current outsourcing trends, it has always been difficult for service companies to find sufficient numbers of well-trained, experienced, and motivated field representatives. This is because the range of water treatment problems and potential solutions are very wide and the business involves the marketing of many different types of chemicals and equipment, coupled with consulting work and innovative trouble shooting. 

Three interrelated trends of globalization among chemical producers and customers, increasing QHSE (quality, health, safety, and environment) standards, and outsourcing by the producers and customers are currently shaping the chemical distribution industry, offering distributors considerable opportunities for competitive differentiation. 

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