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Proceedings of the 2012 International Conference on Industrial Engineering and Operations Management Istanbul, Turkey, July 3 – 6, 2012 An Investigation Exploring the Advantages and Disadvantages of Outsourcing the Development of New Products in the Indian Pharmaceutical Industry Horacio Soriano-Meier Northampton Business School The University of Northampton, Northampton, NN2 7AL, UK Jose Arturo Garza-Reyes School of Technology The University of Derby, Derby, DE22 3AW, UK Jasdev Singh Lal Northampton Business School The University of Northampton, Northampton, NN2 7AL, UK Luis Rocha-Lona National Polytechnic Institute of Mexico Business School, Mexico City, 03100, Mexico Abstract A common practice in the Indian pharmaceutical industry is to continually assess the feasibility of manufacturing their products in-house or allowing contract manufacturers to produce those products on their behalf. In this context, the pharmaceutical industry in India is one of the most highly organised business sectors. The purpose of this study is to investigate which key factors have an impact on the decision-making process when outsourcing the development of new products in pharmaceutical companies in India. To do this, the study followed a qualitative research approach. In particular, semi-structured interviews were conducted among four top manufacturing managers and four top outsourcing managers, involved in the outsourcing decision-making process, in order to uncover the key elements that d ...
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