We through contract manufacturers provide service to several firms based on their own or consumers' designs, formulas, and or specifications. The pharmaceutical industry is having major share in contract manufacturing. Contract manufacturing is beneficial if the company gets involved with the right company, which is able to manufacture quality products. Previously, the paradigm of the Pharmaceutical industry required companies to be vertically integrated, i.e., the company itself performed all the operations required of its business. Outsourcing has resulted in the development of a new paradigm offers companies new opportunities for improving their bottom lines through the conversion of fixed costs to variable costs. They accomplish this by reducing or eliminating in-house production