Major brands in various industries have shed all but their deepest core competencies. For the largest U.S. and global brands, this has typically led to a major offloading of manufacturing, packaging and distribution- and logistics-related functions. The reason is simple; for many if not most brands, much of those functions are commodities, whereas the real and profit-adding value to the brand is the brand itself. When the product can be manufactured and otherwise acted upon using standard equipment, processes and services that meet the brand’s specifications, even the sales function can be outsourced.
Sales is so closely linked to marketing in the Big Brand wheelhouse, it may surprise you to learn that sales, even in the highly specialized life sciences business, is often outsourced. How much of the Big Pharma sales force is outsourced depends on lots of product variables, but the use CSOs, or contract sales organizations, has been mainstream for many years.
How do pharma firms and their CSOs manage the ebbs and flows of the market and tenor workforces? In part, CSOs have been busy scooping-up experienced sales reps as brands reduce their headcount. CSOs area also laying the ground work for global growth through enhanced IT competency, broader service offerings and international partnerships and acquisitions. Online and mobile app use and the resulting collaborative capabilities of sales force software has only hastened the integration of in-house and outside contractors in communicating to customers, in this case healthcare providers. (See article linked below for an explanation of the graphic.)
I recently investigated the phenomenon and wrote what I found in a feature for Pharmaceutical Commerce magazine. Learn more by reading the story, “CSOs broaden their palette of service offerings.”