37REASONS FOR OUTSOURCING IN PHARMACEUTICAL INDUSTRYPharmaceutical companies have to undergo a lot of research and development activities prior to releasing a new drug. They also need to conduct clinical trials prior to getting’s nod for releasing drugs into the market. Large companies tend to outsource their non-core activities to third party service providers who can carry out these activities cheaply. The most common forms of pharmaceutical outsourcing are CROs contract research organization and CMOs contract research manufacturing. This involves R&D outsourcing and manufacturing of medication such as pills, tablets, capsules, etc. This is beneficial for both large multi-national pharmaceutical companies as well as smaller ones. By outsourcing their non-core activities to third party service providers, the pharmaceutical companies can concentrate on the drug discovery and focus on other competencies like marketing their new drugs. The study included of about 40 pharmaceutical R & D outsourcing companies. Survey was conducted from 2009 to 2012. Out of 40 pharmaceutical outsourcing companies, 25 pharmaceutical R & D outsourcing companies were from India and remaining 15 pharmaceutical R & D outsourcing companies were from outside of the India mostly from USA.shailesh@riconpharma.comReview412014R & D Outsourcing,Pharmaceutical industries,CROs,CMOs,Cost Saving,Time SavingShailesh Kumar Develpalli, Malathi Jojula,Bucha Reddy PonakuntiSr. Manager in General Administration Ricon Pharma Private Limited India, Hyderabad, Andhra Pradesh, India.,Department of Pharmacy Microbiology, Sri Shivani College of Pharmacy, Warangal, Andhra Pradesh, India.,Department of Business Administration, Andhra Vidyalaya College, Hyderabad, Andhra Pradesh, India.