The Affordable Care Act, for example, imposes a 2.3% duty on all medical devices sold domestically in the US. This slims Medtech profit margins further and puts added pressure on companies to optimize production and reduce costs.
With numbers like these, it’s hardly surprising that so many are turning to outsourcing. For one, startup costs and internal costs can both be kept low. The speed with which products can hit the market increases significantly with the use of an appropriate outsourcing partner as well.
Fears of Outsourcing
There are a few things holding back the country wise email marketing list adoption of outsourcing in the medical field. Many companies fear delivery delays, quality issues, and third-party inability to comply with regulations. Issues in any of these areas could brand an outsourcing partner as ‘unreliable’. Security and privacy also matter more in MedTech than in many other industries. As a result, using in-house teams for product development, design, testing, security, quality, and compliance often seems safest. Total autonomy over the supply chain was once considered key to secrecy as well.
Changing Attitudes
The changes in the marketplace over one of the disputed issues in academic! the past ten years are changing minds. Companies can either maintain everything in-house, struggle with limited expertise and resources, or utilize outsourcing to produce the same result, in a more efficient manner.
Obviously, those companies
That chose to retain vertical integration china business directory at the expense of performance have not fared well. What began as a trickle became a wave of players moving towards outsourcing. This happened at first incrementally, but as processes have become more commonplace, this is now true for entire portions of business.
