Medical Product Outsourcing
December, 2009
"Decision Time” and “Making the Case for Insourcing"
By Michael Barbella
This feature article explores the reasoning behind contract manufacturers’ and OEMs’ decisions to form outsourcing partnerships, and Marc Tanowitz serves as a strong resource on the topic with a healthcare slant. “The hardest part about outsourcing is having our clients appreciate the mindset that they’re not outsourcing accountability for the business outcome, especially in the healthcare industry,” said Marc Tanowitz, a principal at outsourcing advisory and management consulting firm Pace Harmon. “If your name is on the product, you’re absolutely responsible for the implications of that product on the market and to the people that are using it. An outsourcer can do what you tell it to do, and it can control what it knows about, but we don’t think it’s a reasonable expectation to ask your outsourcer to, in isolation, achieve an outcome that you couldn’t achieve on your own. You can make a wish list of what you want from your vendor, but there needs to be a layer of practicality that you put on it.”
Pace Harmon’s insights regarding technology trends, complex transactions, and supplier management issues are frequently quoted in leading industry journals.
