Medtech Outsourcing: Is The Past Any Indication Of The Future?

By Timothy Blair, Director, Global Business Development, NAMSA

Outsourcing in the medical device industry is on the rise, as the amount of global “dollars” that sponsors (also known as the medical device manufacturers) spend on contract research organization (CRO) services is expected to increase from $3.5 billion to more than $7.2 billion by 2018 (GlobalData). Globalization of medical device manufacturers large and small, combined with the growing complexity of devices, continues to fuel the need for not only more proof data, but also better and faster proof data. These trends in medtech and biotech are adding to an already complex landscape that will challenge current medical device development processes and methodologies.

As outsourcing in the medical device space becomes more prevalent, there are many variables to consider when making the decision to involve a third party. This paper will explore why companies should consider outsourcing, the keys to successful implementation, the potential problems associated with outsourcing, and when it may not be the best model for your company. It is important to not only understand when you should or should not outsource, but also to understand the different effects outsourcing will have on a startup medical device maker versus a large industry manufacturer, as this paper will discuss.