12.18.23 -- Spotting And Avoiding Red Flags When Outsourcing

Some companies are still building the infrastructure to support a thorough RFP process. Lean teams must piece together and rely on cross-organizational or third-party expertise. It can be a messy, rushed, and time-consuming process — but it is a necessary one that serves many purposes beyond simply finding a CRO.

Misaligned expectations can result from many factors, including a misreading or misunderstanding of the average CRO’s business model. These companies typically are structured with layers of management and approval, which means that even simple decisions require multiple people, which can drag out timelines and run up costs.

When reviewing outsourcing vendors, some factors should raise a red flag immediately. A low bid may be reflecting — or hiding — a company that leans heavily on the change order process. Their initial low bid secures the contract, but then their fee is bolstered by numerous change orders, seemingly over every small detail or deviation.

In clinical trials, it is not uncommon that in the middle of a study, there can be unexpected shifts in budget and unanticipated change orders. Gain insight into the significance of meticulous contract examination when choosing a partner to better prepare for these instances.