Hiring vs. Outsourcing: When to Build and When to Partner in Life Sciences

Jeff Galecke

Hiring vs. Outsourcing: When to Build and When to Partner in Life Sciences

For a scaling life science startup, few decisions are as strategic as whether to build capabilities internally or outsource them. While the earliest stages demand a hands-on, do-everything mentality, growth introduces complexity and the critical need for focus. This isn't just a question of headcount; it's a defining choice about your company's identity, agility, and competitive advantage.

This post explores a framework for deciding what to own, what to delegate, and how the right partner can become a true force multiplier.

Why This Decision Carries So Much Weight

In an environment of constrained resources, the "build vs. buy" question is about strategic risk management. Overbuilding can deplete your runway on functions that don't differentiate you. Conversely, leaning too heavily on a few key internal hires is also a gamble. If a core team member leaves, you don't just lose their expertise—you lose institutional knowledge, momentum, and precious time as you are forced to recruit, hire, and train a replacement.

A structured approach to talent allows you to align resources with strategy, preserving capital and focus on what truly matters.

"The only way to win is to learn faster than anyone else." — Eric Ries, Founder of The Lean Startup

When to Build: Protecting Your Core Advantage

Some capabilities are the lifeblood of your company and belong in-house from day one. These are functions that are central to your long-term value and competitive differentiation.

Build internally when the role:

Is fundamental to your intellectual property or product vision
Requires continuous, rapid cross-functional iteration
Defines your strategic market positioning or scientific credibility
Contributes directly to irreplaceable institutional knowledge

For most life science tool companies, this means core scientific development, platform engineering, and product management. These internal hires form your company’s DNA, drive cohesion, and become the cultural carriers who steer your trajectory.

When to Outsource: Accelerating Through Partnership

Outsourcing makes strategic sense when a function requires specialized expertise that isn't central to your core product. The right partner doesn’t just bring a skill; they bring decades of experience from seeing what works—and what doesn’t—across the life sciences landscape.

Outsource when the function:

Requires specialized or intermittent expertise (e.g., regulatory strategy, go-to-market planning)
Can be modularized and managed via a defined scope
Is operationally necessary but non-differentiating (e.g., CRM implementation)
Would be cost-inefficient or slow to build internally

Engaging an external partner allows you to deploy senior-level expertise, test new initiatives, and cover bandwidth gaps without the long-term overhead. Done right, these partners act as force multipliers, delivering results while freeing your team to focus on what only they can do.

...(our consulting firm) feels like a part of the team. Both parties have invested heavily in creating a culture of collaboration and innovation. There is a strong sense of trust that has developed from listening to each other and also by challenging the norm.” — Jason Hendrey, Senior Director, Global Customer Services, Oxford Nanopore Technologies

Avoiding the Pitfalls of Outsourcing

While outsourcing offers powerful leverage, it requires the right approach. A transactional relationship often leads to disappointing results.

Success hinges on avoiding three common pitfalls:

The Knowledge Transfer Gap. Many consultants deliver work but leave a void when the contract ends.
The Solution: A true partner focuses on strong process development. They don't just execute; they build and document a playbook—a bespoke set of SOPs and systems—that empowers your internal team long after the engagement.
Cultural Misalignment. An outsourced team that operates in a silo can never feel like part of your company.
The Solution: A human-centered design approach is critical. The right partner invests time to understand your culture, integrates with your teams for regular communication, and functions as an embedded resource, not a distant vendor.
Scope Creep and Hidden Costs. Without clear definitions, projects can drift and budgets can swell.
The Solution: Work with a reputable agency that insists on a robust Statement of Work (SOW) upfront, ensuring that goals, deliverables, and success metrics are mutually understood.

"The best outsourced teams feel like an extension of your own. If it feels too arm’s-length, it probably is." — Jeff Galecke, Managing Partner at i5 BioPartners

Conclusion: A Strategic Discipline

The choice to hire or outsource isn't a one-time decision; it's a strategic discipline that evolves with your company. By assessing each function through the lenses of differentiation, cost, and risk, startup leaders can make confident choices that protect runway and build value. Knowing when to build and when to partner is fundamental to success. The right partner won't just complete a task—they'll enhance your capabilities, solidify your processes, and help you scale smarter.