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Big is Better

It is a myth that in pursuing innovation, bigger is better. In the medical products industry, innovation is occurring largely in small startup technology companies that can take high risk. Often speed to the market is the key to financial success. Unfortunately, these small startup core technology companies have a high failure rate. Outsourcing can help stabilize the work force for small core technology innovation. Large companies typically take less risk but move at a much slower pace because of their size.

Research on the human mind has shown that this productivity loss is due to the inability of the human mind to "connect" with more than 40 people. Because of their lack of complexity and the connectivity of employees, small companies, with 40 or fewer employees, can execute rapid change compared to large organizations. This is true of both Core Technology and Outsource organizations.

Large Outsource organizations usually have higher end tools. The larger Outsource organizations also typically have higher charge rates as well to cover their more expensive overhead.

One company size does not fit all project needs. The customer should determine its risk tolerance, need for rapid change, cost requirements, and choose an appropriate "big" or "small" Outsource partner.