Top four misconceptions about commercial outsourcing

Bijay Singh




While regional partnering in healthcare is becoming increasingly important in Asia, certain misconceptions keep surfacing. I was recently interviewed on the biggest misunderstandings about commercial outsourcing:



Misconception one: “There is only one outsourcing model (and it doesn’t fit my business!)”

“No two businesses are the same, hence we also don’t believe in a one-size-fits-all model for commercial outsourcing. We work with a range of options. The full agency model is where DKSH is trusted with a client’s entire sales, marketing, distribution and logistics. Then there is contract sales outsourcing, where the client manages the marketing but entrusts DKSH’s sales teams with handling all sales activities. On the absolute other end of the spectrum is the hosting model whereby the client may host some of their employees at DKSH, whilst keeping control over sales and marketing. Each model can be further tailored to the clients’ requirements, taking into account finance, people and compliance implications.”



Misconception two: “Compliance is at risk when conducting a commercial outsourcing exercise”

“Deciding on a partner that takes compliance as seriously as you do is crucial. As a publicly listed company we adhere to strict compliance and governance regulations. Should your company have even stricter standards, we can fine-tune our processes accordingly. The only thing we won’t do is lower our standards. DKSH has an independent compliance organization and we are regularly audited for compliance by the largest healthcare companies”



Misconception three: “Outsourcing of marketing and sales activities reduces visibility and control”

“Retaining marketing and sales of your products in your own hands may indeed give you full insight into performance. However, this comes at the cost of investing in and managing a fully-fledged sales operation for products or geographies that may no longer be core to your organization.

Commercial outsourcing frees resources, yet it is not a hands-off exercise; it’s a partnership. Regular and open communication around results, as well as execution of agreed actions, opportunities and challenges delivers the best results. Modern electronic territory management systems further enhance transparency and visibility. At DKSH, we believe that a transparent reporting and business review meeting process is key for sales success.”



Misconception four: “Agreeing on contract terms takes time, which could be better spent on driving sales”

“Time is money. We understand that you want to minimize interruptions to your sales. Entering the discussions with clarity on the business objectives and your preferred outsourcing model will speed up the process. This takes strong leadership from both sides of the table. We also build on our existing contracts with clients to generate contractual efficiencies and reduce the time needed for drawing regional partnership contracts.”