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How managed services will transform the life sciences sales and marketing model

The life sciences industry needs to deploy new commercial models to drive growth while delivering cost efficiencies.


Over the next three years, it is expected product patent expirations will result in $50 billion in lost revenues. This pressing issue is forcing pharmaceutical companies to reassess the scale and affordability of their sales and marketing organizations. The picture quickly becomes more complex when you add the move toward selling health solutions versus products, the digital revolution and the growth of emerging markets.

Life sciences sales and marketing executives are struggling to keep up with these changes while being asked to reduce as much as 30 percent of their sales and marketing operating costs. The answer to this challenge is a new customer-centered sales and marketing model featuring integrated, end-to-end business managed services for select functions with technology as the driving force.

Key Findings

First mover advantage will come to those companies that pursue integrated end-to-end managed services across their sales and marketing functions. Those companies that are moving toward a global sales and marketing operating model are already laying the groundwork for future high performance. The next step is to infuse the model with the right managed services partnerships to maximize business outcomes.

By developing and executing an integrated, end-to-end sales and marketing services model that relies on third parties to execute sales and marketing functions, life sciences companies can significantly improve brand and portfolio performance and reduce costs. The value of an integrated approach cannot be underestimated:

  • Cost Reduction. Realize up to 30 percent cost reductions by reducing promotional spend, through vendor and platform consolidation

  • New Capabilities. Accelerate innovation and capability at global scale and take advantage of emerging technologies without investing in internal resources

  • Competitive Differentiation. Improve business outcomes while enabling high quality, differentiation, with customers driving growth across brands and markets

  • Process Efficiency. Improve and integrate content production and management across channels and markets to promote global consistency, local relevance and collaboration among brand and sales teams

  • Customer Service. Improve quality, cost and speed of delivery for disease and product content for physicians and patients

  • Resource Optimization. Focus skilled internal resources on building out core capabilities that align with strategic priorities and leverage strategic partnerships to address the operational needs of sales and marketing more cost efficiently

  • Accountability and Transparency. Achieve single accountability through strategic partnerships that is often impossible with multiple vendors across brands and geographies


Every major life sciences company is looking for a better and more efficient way to support and grow the business while reducing costs in a complex environment. Getting there demands bold transformation of the sales and marketing function with an end-to-end managed services operating model.

Moving toward this new reality will be a journey, not something that happens immediately. As companies realize an integrated managed services model, it will deliver and sustain results well beyond anything the industry has experienced prior with narrow and selective approaches to change.

Not too long ago, the pharmaceutical industry looked at outsourcing of clinical data management in R&D with great skepticism. Today, the practice is commonplace. Sales and marketing organizations are poised to make a similar journey as their peers in other functional areas have. Future high performers and first movers will launch into the managed services frontier and create cost-effective, efficient and agile sales and marketing organizations to propel them ahead of both the competition and the challenges of change.