In drug discovery outsourcing, pharmaceutical companies now have the ability to contract out parts or all aspects of the early-stage drug discovery process to an external provider, otherwise removing the need for expensive in-house manufacturing capacity. The drug discovery operations are typically contracted out to a third-party, such as a contract research organization (CROs), or to an academic laboratory that specialises in drug discovery. Thus the drug discovery outsourcing process typically involves two organisations entering into a contractual agreement; where the academic laboratory or CRO performs the drug discovery work in return for research funding or payment, creating long lasting inter-company relationship which can span the globe.