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Why Medical Device Companies Should Prefer Outsourcing Manufacturing Services

Publish Date: June 02, 2020

Looking to outsource the manufacturing of your medical device? If the primary motive is to cut the operational and manufacturing costs and still uphold the quality, outsourcing manufacturing services for medical device is the best option. Read on to know the benefits of hiring a third party manufacturer for a medical device company.

Handing over your projects to a third-party manufacturer can be quite challenging. You may have various questions swirling in your head. Will they understand the requirements properly, will they reach out to you to ask queries, or will they simply rush through and deliver a final product that doesn’t meet your requirements? Thankfully, developers have been outsourcing to contract manufacturers since years.  

Today, the healthcare industry is persistently enhancing its potential as companies are now outsourcing complex machineries and devices equipped with pioneering technologies. Outsourcing machineries and devices isn’t a new concept; its aids for the medical device sector are known since ages. With the rising popularity and demand, the medical device outsourcing industry is currently booming at a rapid pace.

Let’s first take a deeper look at what exactly it means to outsource your medical devices? 

A medical device manufacturing outsourcing is a type of contract manufacturing in which a company signs a contract with a third party to perform business functions such as prototyping, product design, supply chain management, and manufacturing of a medical equipment or a part a complete product. Contract manufacturing helps medial companies to upkeep with the pace of technological developments in medical devices and deliver novel and desirable products with greater efficiency, speed, and cost-effectiveness.

Why to outsource medical devices?

Medical device companies are always under pressure for maintaining budgets without sacrificing quality, deadlines, or safety. Even though, many novel technologies and process developments have been invented, they don’t offer any conspicuous help to the medical device industries. However, this growth is bringing in more regulations with more strict and complex rules, and the competition is also getting more penetrating. By outsourcing some of its component, medical device Original Equipment Manufacturers (OEMs) can benefit from the reasonable operational costs, improved agility, and boost their return of investMENT (ROI). 

Benefits of buying finished products from a third party

The major topic of debate when it comes to outsourcing a medical device is the cost efficacy. Usually, contract manufacturers assign their resources on a task in which they are specialized in. Hence, by doing so, the best team works on your projects and delivers a quality product in lesser time. Therefore, the prices that contract managers’ charge are sometimes far below than what an OEM can manage in-house.

Outsourcing the manufacturing of devices or parts of devices helps OEMs in avoiding the huge, long term commitments. Smart OEMs select a single contract manufacturer rather than investing time, money, and space on different contract manufacturers. Also, by hiring a single efficient contract manufacture that fulfills all your requirements, you do not have to worry about getting new equipment, hiring & training new employees, packaging, testing, and logistics. 

How to select the right contract manufacturer

Choosing a contract manufacturer for the required medical device can be a difficult task. Firstly, describe the device you want to develop, the services you need from the contract manufacturer, the cost range for the device or the component, and lastly state the total non-recurring engineering (NRE) costs in your budget. Once all your requirements and information related to the device are documented, shortlist a few manufacturers and ask them to bid. Accordingly, assess these manufacturers based on the quality and services they offer, and finalize the right contract manufacturer for your medical device.

Some manufacturers are hesitant when it comes to handing over all the control of the production. However, if you carefully choose a reliable third party manufacturer to handle the production, you can focus on other vital tasks in your company and give better outputs.

The bottom line 

Outsourcing of medical devices not only reduces costs, but it also enhances the overall speed to market, improves quality, and allows your company to focus on its core business. Eventually, it helps OEMs attain their goal of generating more revenue and deliver topnotch medical devices.


Princy A. J

Princy holds a bachelor’s degree in Civil Engineering from the prestigious Tamil Nadu Dr. M.G.R. University at Chennai, India. After a successful academic record, she pursued her passion for writing. A thorough professional and enthusiastic writer, she enjoys writing on various categories and advancements in the global industries. She plays an instrumental role in writing about current updates, news, blogs, and trends.