Why Outsourcing Medical Device Development Make Sense

 Wendy Dessler
  Nov 08, 2017

The very essence of outsourcing is in the interest of improving ROI. Indeed; when done correctly, it can maximize your return on investment. This rings especially true in situations where the internal details of the product or service - in this case, medical device equipment - supersedes your specific range of expertise.

For example, if you’re a company like www.healthmarkets.com/content/part-c-medicare in the healthcare field, and your specific business is focused on the procurement of health services for a wide range of groups, then your area of expertise lies outside of the technical details of LASIK surgical machines and infusion pumps. Properly developing and testing such machines requires an entirely different infrastructure than your business would have, which would be prohibitively difficult to maintain in conjunction with your primary services.

Additionally, even more, important than the infrastructure is the technical expertise needed. The development of medical device equipment requires skilled engineers and the support systems/crews necessary to maintaining an efficient workflow.

The Speed and Efficiency Benefits of Outsourcing

The fact is, trial and error leads to increased costs. If you engage in your own medical device development when that’s not your primary product, you’re guaranteed to have cost overruns and delays of all types.

By outsourcing this to a viable company, you’ll be able to take advantage of their established communication protocols and their familiarity with all the pitfalls that lead to delays. In fact, usually, such companies already possess blueprints for these devices, which makes shortens the time to market considerably - you’ll also see the effects reflected in the reduction in expenditures.

Companies in all industries take advantage of the expertise offered by outsourcing, whether it’s in the automotive industry with the huge market for injection moldings, as provided by companies such as Weiss Aug, or the healthcare insurance industry, where you might have need of custom medical lasers that you couldn’t possible procure in-office - not without great cost, anyway. Hiring a separate team of experts skilled in medical devices would simply be a drain on resources - and this doesn’t include the capital required to develop their skills, keep them up to date, and procure diagnostic tools and separate office space.

Issues With Developing Medical Devices In-Office

The following is a summation of the problems that always arise when specialized work is attempted by non-specialty crews. These are not, of course, exclusive to the medical field.

  • As with any other team of interacting parts, your internal team will have to be managed for the specific task of engineering the devices. This comes with all the problems of people management; particularly with deadlines looming and the inevitable cost overruns that beginning teams (and even experienced ones, sometimes) experience. Outsourcing eliminates this, as the contractor will have these issues resolved given the sheer plenitude of business she does with multiple companies. Her team, in effect, will be a well-oiled machine - but more importantly, it’s no longer your problem.
  • Significantly increased costs of doing business. When you hire a separate engineering team for something that is better off being outsourced, your out of pocket costs include salaries, overhead, the purchase of specialty equipment and any associated, non-productive time. This last encompasses the waiting period for the conclusion of prototype tests, clinical data, etc.

As for the importance of speed in acquiring the medical devices you need, you need to factor in the inevitable obsolescence of any device. In a competitive environment, any device has an operational lifetime, as well as a competence lifetime - it will be replaced by a product that better meets the demands of the consumer.

You’ll notice this as revenue begins to fall off after a time when using the equipment - assuming that you’ve controlled for other factors. The results you obtain at the beginning will begin to fall off after reaching a zenith; this is because products that better fit the needs of the consumer are gaining traction. A rapid time-to-market schedule helps you maximize the utility of the device.

The Indelible Benefits of Expert Insight

With outsourcing, you are privy to the in-depth knowledge and expertise of a project lead who already has a program in place. This means all the FDA regulations, complicated process in the manufacturing chain and intangibles are taken care of and sharpened through the repetition that keeps his business alive.

The above similar to your presumably outsourced information technology sector, if this is a feature of your business. A one-to-one analysis of the benefits of IT in the hands of the experts should return similar results when you do it for medical equipment production. In particular, the focus on meeting regulatory standards would be especially challenging for a company that’s not in that specific field.

In sum, then, outsourcing is simply the procurement of experts for specialized functions in order to maximize your ROI.

Why Outsourcing Medical Device Development Make Sense

Wendy Dessler

Wendy is a super-connector with Outreachmama who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition.

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