Changes Occuring for Biotech
I found this recent article about the changes occurring within the biotech industry interesting.
SignOnSanDiego.com > News > Business > Biotechnology — Good old days gone for biotech:
Basically it talks about outsourcing and how it is impossible for US discovery businesses to compete on the basis of price with India or China. It is telling that large pharmaceutical companies such as Pfizer, are trying to get US companies to compete head to head, based on price with companies overseas. While I understand their need to get the lowest price, I also believe there is more to such contracts than just price. I think companies need to think about more than just price and to think loner term rather than the bottom line of the next quarter. If these higher paying jobs such as chemistry and biology are outsourced, what is left for those in the US even with an advanced degree?
Previously outsourcing use to be primarily in the manufacturing industries such as automobile parts or refrigerators. Now, it is increasingly moving to higher value industries and the pharmaceutical industry is a prime example. I personally have been caught up in this, not so much from an outsourcing perspective but from a merger of which cost cutting was a major factor. It was cheaper in a foreign country to hirer someone to do my job than to pay me the going wage in the US. I do not oppose outsourcing directly, but do ask what is to become of US citizens who no longer have a job. The common refrain is that there will be other jobs for the next “big thing” here in the US. But I argue that this has not happened and when I ask, no one can point to what the next “big thing” is.
I think too much focus on price has occurred and there needs to be a lot of thought given to whether or not outsourcing of almost everything is in the best interest of the US as a whole. This applies not only to large companies but also to individual. Our obsession with the cheapest price drives jobs overseas in order to meet those low price demands. By purchasing the cheapest items, we are indeed encouraging outsourcing. Instead of focus on bringing prices down, we should focus on increasing wages and better jobs here at home.
Technorati Tags: outsourcing, biotech
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