The traditional business model for in-house pharmaceutical manufacturing is nearly a thing of the past. More companies are turning to outsourcing to achieve flexibility and efficiency in a highly competitive market. Nevertheless, this does not mean an outsourcing strategy is necessary for every project. A thorough evaluation of a manufacturer's capabilities and true cost structure must be completed early to determine if its goals can be achieved in-house. More importantly, this decision must be made early to allow enough time to initiate an outsourcing partnership.