How Outsourcing Has Changed in the Post-COVID World

Even before the recent pandemic, outsourcing was a considerable investment for most pharma companies, both large and small. The need to outsource certain aspects of clinical trials is often critical, with contract research organisations (CROs) offering specialised expertise or equipment that many companies lack or cannot afford to maintain. COVID has changed the fundamental nature of clinical trials, and the question remains around how different outsourcing will be in the post-COVID world. 

COVID-19 had a dramatic impact on the life sciences sector, and clinical trials in particular, with many trials reduced or shut down altogether over safety issues. In addition to this, businesses were forced to alter trial budgets and thus focus more on generating profits and outsourcing non-vital functions in order to survive. 

Outsourcing provides resources and experience not found internally. Additionally, it allows for improved workflow efficiency and a reduction in costs as companies focus internal resources on the most critical aspects of clinical trials.

COVID-19 and Outsourcing

The natural incentive to increase outsourcing investments post-COVID involves finance. With so many pharma companies taking a significant monetary hit over the course of the outbreak, it is vital to conserve remaining funds. With the need to hire and train fewer employees and support staff, hire additional office space or increase occupancy costs, huge savings can be made by outsourcing less complex or intense activities to external organisations. Companies can in effect scale their workforce without the burdens of full-time staff or workspaces. 

Another benefit which has grown during COVID is the ability to access new and innovative technologies. With technological progress in the field advancing much faster than usual during the pandemic, it is more vital now than ever to be able to access innovations and technologies that would be too expensive to permanently own, or would require significant training investments to run. 

Another significant change is the move towards more involved partnerships with a smaller number of outsourcing parties. This ensures that in similar situations to the recent pandemic fewer weak links in the chain exist to fail and cause further ramifications in supply and logistics. Beyond this, larger supply networks are expensive and complex to run. Smaller and more streamlined chains are both more productive and safe. 

The major question post-COVID is whether companies should outsource their needs to full-service CROs or to a number of smaller functional service providers (FSPs). While a single CRO is simpler, it is often cheaper to use several FSPs – though more complex to set up the necessary chains.

The FSP model has allowed pharma companies to cheaply and efficiently manage their organisational needs across a portfolio. The ability to ensure flexibility of available resources and quickly source the necessary expertise for any problem was invaluable during the uncertainty of the pandemic. 

The FSP model has a number of uses in a COVID environment. The ability to rapidly redeploy resources across different programs as new models open up meant there was no significant additional cost or time delay, as might be the expected case. With the need to suddenly shift to remote working, relying on resources and expertise of contract companies means employees can be trained up in a week. 

Within CROs and other contract businesses, there have also been major changes, most significantly the switch to virtual and hybridised trials. With such significant industry input being placed on these remote variants, contract organisations are changing their models to focus on this. New specialisations are being created in e-forms, wearables, and recruiting and engaging patients from their own homes. 

Interaction

According to one survey, despite the pandemic clients still preferred to meet in person with outsourced providers, with 39% rating this as a ‘very credible’ channel. Webinars and industry events also figured into how best to communicate. 

What is clear from many accounts is that in the next few months there will be a marked renegotiation of contracts to better reflect the changes that companies have experienced. Elements such as pricing, scope and mode of delivery will be refigured. 

Conclusion 

As a fundamental part of the pharma sector that has seen significant development and change over the COVID-19 pandemic, the outsourcing space will not return to the ‘old normal’ again. A more flexible, rapid-paced style and dramatic shift towards expertise within virtual and hybridised trials has also occurred, with an emphasis on patient recruitment and safety.

Joshua Neil, Editor
Proventa International