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What is outsourced engineering?
Outsourced engineering involves assigning certain engineering functions and tasks to a team or team members who are based outside of your organisation. Due to the complexity and specialist nature of these roles, finding suitable candidates within India can be quite challenging and costly to an organisation. Outsourcing provides a practical solution for many organisations to have access to a low-cost and talented offshore market. Many engineering jobs are quite repetitive and task heavy, so by outsourcing these roles, businesses are able to focus their efforts on the important revenue streams onshore, while transactional tasks are being maintained offshore.
By hiring an offshore team or team member, you are able to allocate engineering functions such as:
- Research and development
- CAD and drafting
- Business information modelling
- Reverse engineering
- Product lifecycle management
- Document management
- Value management and benchmarking
- Consulting services
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Why do businesses outsource engineering services offshore?
Engineering requires strong attention to detail and it can become a costly recruitment process to source this talent. Oftentimes, businesses find it takes them quite a while to find suitable candidates for such a specialist industry. The time taken to source these roles would be better re-focused on revenue generation and relationship building. Offshoring engineering services provides a smart and easy resourcing solution that opens up a market of highly qualified and skilled engineers from around the world, for a fraction of the cost when considering salary and recruitment fees.
Businesses are able to save up to 70% on employment costs by outsourcing to low cost economies such as the India. And whist costs decrease, quality does not. The India is a world-renowned location for offshoring and produces exceptionally talented candidates across the engineering space.
The funds saved by outsourcing are then able to be reinvested back into the business to help promote sustainable growth.
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What job roles are usually outsourced in engineering?
Although there are many roles that can be outsourced within an organisation’s engineering services, examples of these roles include:
Estimotor & Source
These roles are particularly transactional and can use up valuable resources on a limited project budget. With offshore markets becoming more accessible to businesses by way of outsourcing companies, organisations can save on costs by implementing an offshore engineering team or team member.
Benefits of outsourcing engineering services
Key benefits associated with outsourcing engineering services services to the India include:
Efficiency increase
By handing over transactional engineering services tasks to the offshore team, you are providing your local team with the opportunity to take on more work. By distributing workload across your offshore and onshore teams, your businesses efficiency and productivity levels will increase.
Cost savings
By hiring an outsourced team to assist your onshore departments with these engineering services tasks for a fraction of the price, your organisation’s overheads and staff costs will dramatically decrease, by up to 70%.
Increased employee satisfaction
Engineering services services’ tasks can be quite tedious and time consuming. By handing over these repetitive jobs to your offshore team, you will see an increase in employee satisfaction as your onshore team will be able to focus on what they were initially hired to do.
Business growth
By enabling additional capabilities through your offshore team, you will be able to provide your local employees with the capacity to take on more work. This in turn will lead to sustainable business growth.
Benefits and Risks of Outsourcing Engineering Services
Today, large enterprises, small and mid-sized businesses, and even startups all over the globe use outsourced engineering services to bring their Engineering projects to life. An outside team is often a good solution for optimizing project costs, supplementing available resources, acquiring rare expertise, and shortening product delivery terms. However, there are numbers of less obvious yet important advantages of outsourcing engineering services.
In this article, we analyze the key pros and cons of outsourcing engineering services. We also look at ways you can address your concerns about delegating software engineering activities to outside professionals. This article will be useful to anyone considering moving engineering project development, testing, or support outside their company.