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Medical technology provides opportunities for outsourcing

Renovate or die. In times of economic crisis this maxim is more valid than ever – renovate and adapt to pull the shutters down definitely. In the context of the current economic conditions, opening up to medical technology sector, i.e. to the production process of manufacturing devices, medical equipment and hospital technological, could be a good bet to get out of the hole, according to a report presents on May 13 at a conference organized by Biocat which also unveiled a new online tool to help companies turn to the world of medical technology.

Octavi Planells | 17 may 2010

Biocat, with the collaboration of ACC1Ó and 22@Barcelona, organized this conference under the title “Promoting contract manufacturing for medical technologies” focused on highlighting the business opportunities this sector provides for subcontracting. Catalonia has a large number of businesses in activities related to technology and innovation, but few are engaged in medical technology. Moreover, those involved often have a series of economic and logistical shortcomings.

Marta Príncep, innovation director of Biocat, explained “[t]oday, most companies can not afford to do everything needed to produce a product, as this would require a large amount of economic resources, a large staff and numerous specialties.” Príncep said that in response to this situation companies are concentrating on preserving what is critical to their product and outsourcing everything that is not exclusive to the product and can be standardized. Herein lies outsourcing, or contract manufacturing, the use of external partners that produce part of the product a company is developing.

The report, compiled and written by the consulting firm Grupo Idom, was presented by the firm’s innovation director Xavier Aymet. It identifies gaps in this area of companies involved in medical technologies, while also recognizing the technological potential of many companies in the Catalan industrial sector. In particular, the document highlights the potential for many companies to make economic and innovative advances in this area through subcontracting. “In Catalonia, there is a niche for contract manufacturing for medical technologies,” said Aymet.

Based on data from the Barcelona Chamber of Commerce, the report states that 1,055 Catalan companies practice outsourcing, but only a few offer services to the medical technology sector, which is an indicator of the great potential of companies that convert to the field. To fill these and other gaps that emerged in the report, Grupo Idom also prepared an action plan including a roadmap to promote outsourcing in this area.

Search online opportunities

During the conference Príncep presented the an on-line database of contract manufacturers for the medical technology sector, a new digital tool that aims to create new links between the industry and those companies which represent untapped potential in this field; it is a search engine created to promote the contract between companies and generate new business opportunities. “We have created an opportunity for both sectors to meet and grow,” said Príncep, referring to contacts between companies specializing in medical technology that have not yet discovered this hidden method for innovating.

“We did a study to understand what needs the sector has and we have created an action plan in the medium and long-term in clear relation to the Idom report whose immediate action is the on-line application we have introduced today,” Príncep said, adding that “this application is designed for companies that are not part of the biomedical sector.” The tool helps companies unfamiliar with the biomedical sector understand what clinical applications their products or production line may have. After the user selects a series of criteria that best his or her company’s product or activity, the search returns a list of manufacturers of medical technologies that might be interested.

At this point, it is up to the user to decide to take the step to convert his or her business. With this on-line database, at least they know where to start. A company will only have to decide to take the step of contacting these potential partners to begin negotiations about how to jointly renovate and adapt or, otherwise, remain stagnant in the midst of a long-lasting economic crisis.

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