Is the push-back to replace the entire department with contractors or bring on contractors in ancillary roles? If the former, then the simplest one-liner that I

Is the push-back to replace the entire department with contractors or bring on contractors in ancillary roles? If the former, then the simplest one-liner that I can give you is that "you can't outsource your way to prosperity." Never going to happen. I would suggest asking why they wish to relinquish control of their business to a third-party(s) that have no intrinsic motivation in the success of the business? Given that you are in R&D, knowledge/experience is the company's bread and butter and handing that over to contractors is an unnecessary risk.