The article that I read discussed the need in the Pharmaceutical
industry to outsource and manufacture overseas in recent years. The article talks about how the how the
skills that are needed in order to manufacture drugs can be readily found in
emerging countries. This takes out the
fear that drugs are not being manufactured in a correct and proper way. The article focuses on the fact that due to
the recession pharmaceutical companies have needed to cut back as much as they
can. They found that outsourcing
manufacturing was the easiest and most efficient way to achieve this. The article points out a very important fact
to be aware of. It tells pharmaceutical
companies to watch out for the emerging areas that they are choosing to
manufacture in. It points out that
recently in the electronic industry the company that was being used to
manufacture its goods decided to produce their own goods and soon became the
company’s competitor.
One of the major concerns of people is that because the drugs are
being produced in emerging countries there is a sense of fear about drug
safety. People are worried that despite
best efforts if manufacturing is outsourced there will be no way to know if the
drugs being produced will be completely safe.
Another concern is the implications that it will have on the jobs of the
people already employed. When this
article was published there were no answers to these questions yet. Many knew that outsourcing would mean loss of
jobs and that is most likely correct.
When a company outsources it becomes cheaper for them to hire, which
means the loss of jobs of many.
The companies that are outsourcing are outsourcing much of their manufacturing
and also their research and development.
One of the main industry players that is outsourcing is IMS. The article states that four of the ten
largest pharmaceutical players have started to outsource. This article is from 2008 since then it is
most likely that more companies have decided to outsource.
Rachael Bieck
I knew that a lot of manufacturing companies outsourced their jobs to other countries like China and India, but I had no idea that pharmaceutical companies did it to the extent that they do. I guess this just goes to show you that everyone is trying to save money in the manufacturing of their product, even if it means hurting their home country's economy.
ReplyDeletethis is interestingto read. People should be concerned about drugs manufactured in emerging countries because many countries do not have the same regulations that keep the production of drugs safe.
ReplyDeleteoutsourcingalso meansthe loss of jobs which is never a good thing for theeconomy especially in these times.