May 1, 2003

1 Min Read
Deciding to Go Virtual

Originally Published MX May/June 2003

FINANCE

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The Virtual Strategy

Since starting a medtech business can be prohibitively expensive, smaller companies often don't have much choice about whether or not to outsource The cost of office space, manufacturing facilities, cleanrooms, laboratories, equipment, and staff adds up fast. Following are some key factors that company executives should consider when thinking about how much of their business to outsource.

The Upside

     Company can:

  • Maintain ownership of the product and the direction of the company.

  • Achieve greater flexibility and spontaneity; several firms may be working on components and other projects simultaneously.

  • Obtain expertise and experience from top talent, no matter where in the world that talent is located.

  • Increase the value of the company by 50%, while minimizing capital outlay.

  • Accomplish the same tasks as fully staffed and equipped companies at just one-sixth to one-fourth the cost, since it's paying only for the time experts are spending on its project rather than for full-time help.

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