A global pharma giant relied heavily on outsourcing partners but wanted to de-risk their business and increase productivity. They found that insourcing provided a sustainable solution by accessing global talent, reducing attrition, and accelerating time to scale.
PharmaCo* is a Fortune 500 Healthcare and Pharmaceutical company, that produces life-saving drugs. Breakthrough scientific research and discovery has been the nucleus of its DNA since inception. To meet burgeoning business demands, PharmaCo had a global network of ~300 consultants who were contracted on a project basis. This model of engagement created a lot of dependencies on the consultants, who had a very short tenure. This resulted in loss of productivity, domain expertise, and a high cost of rehiring. The company was looking at strategies that would meet a dual objective – improving process excellence while retaining domain experts and maintaining data security.
Over the span of 15 months, Zinnov collaborated with PharmaCo on an insourcing-consultant hybrid strategy. A compatibility mapping identified the domain and revenue loss because of consultant attrition, and proposed the roles to be insourced, that would report to internal global teams. Insourcing allows PharmaCo to efficiently leverage global talent in different geographies for key roles, who work in tandem with a smaller portfolio of consultants. The model allowed for iterations to maintain optimal equilibrium – balancing what is insourced vs contracted.
As part of the engagement, Zinnov is working closely with PharmaCo to set up and establish their bioinformatics center. Zinnov is program managing this center setup across the entire value chain – from entity establishment, setting up HR, Operations, to Governance. Zinnov’s deep expertise in mapping the GCC landscape and setting up over 50 captive centers in the last two decades, enables a seamless customer experience at breakneck speed. Our proprietary GCC models, including the GCC Maturity Framework, and the award-winning GBS advisory have resulted in companies reducing costs by 20-30%. Zinnov has successfully decreased the average setup time from 1 year to as low as 90 days. Time to value extracted from centers has also reduced from 3 years down to 1.5 years. This allows for expedited time to value and time to scale.
The strategy has increased productivity and process ownership, and insourcing is helping PharmaCo achieve 18-hour productivity cycles through a ‘follow the sun’ model with global teams making decisions, leading to increased daily productivity.
Over the next 18 months, PharmaCo has plans to deepen domain expertise driven out of its India center, resulting in a reduction in the time to drug discovery, which directly impacts top and bottom lines. Furthermore, the exponential impact on patient care feeds into both PharmaCo and Zinnov’s mission of strategy with purpose.
Zinnov will continue to play a pivotal role in helping PharmaCo operationalize this vision of building and scaling a world-class Global Development Center.
*To protect the privacy of our clients, names have been changed. The results, however, are 100% real.
Global Capability Centers (GCCs) are in-house centers that include a global insourced team of full-time employees who work in alignment with the vision and culture of the company, establish expertise, and drive innovation. These centers add value to business-critical operations that drive global functions.
Insourcing helps focus on core business activities, increased efficiency, controlled costs, increased reach, greater control over quality and IP, enhanced customer experience, and greater competitive advantage. Outsourcing on the other hand, helps leverage and collaborate with a larger talent pool, optimize costs, work with limited resources, among other things.
India, Canada, China, Poland, and Mexico have emerged as the key offshoring talent hotspots of the world, with the capacity to house full, scalable software product engineering teams across various functions, including product engineering, software development, IT, and more.
Here are the key levers that can ensure successful setup of a Global Capability Center in India –