With growing consumer demands for new products, a large majority of companies are thinking about outsourcing engineering services to India, and thereby increasing their engineering capability. If your company is at such crossroads, you may be wondering about the pros and cons of outsourcing engineering services.
- A compressed development cycle: When you outsource engineering services, you will have an expert team of dedicated professionals who will be at your disposal. This will drastically shorten your development cycle of new products, thus providing you with fast and cost-effective results.
- Better operational efficiency: By outsourcing product development to an engineering service provider, you can save on fixed assets, engineering resources and the rising cost of labor. This will leave you with enough finances to invest into your core competencies.
- Access to value add services: At times, you may find that the development of a product requires value-add services like software development to finish up a project or the development of firmware to help in the development of a specific hardware. Instead of again hiring additional resources, you can enjoy such value add services by outsourcing.
- Flexibility: By outsourcing the engineering and design of a product, you can utilize the extra time and energy to improve and develop your core competencies. Outsourcing can give your company the much needed flexibility that it deserves.
- Issues with non-compliance: While outsourcing engineering services, non compliance can become a major issue between the customer and the vendor. This can result in earning a bad reputation and name from your clients.
- Loss of control: If your company follows a set of standard procedures, your company can experience a loss of control over its business processes, while outsourcing engineering services.
- Low quality and turnaround time: There is always the risk of getting a low quality version of the finished product or your engineering product not being delivered within the specified turnaround time.
- Low performance levels: At times, the service provider may not match up with your required expectations. This in turn can affect your performance levels.
While outsourcing engineering services, you will find that the pros associated with engineering services very often outweigh the cons. Meeting up with the service provider prior to the start of the project can help you asses if they are the right match for your company. You could also request for a free trial project to check the quality level and the turnaround time of the service provider. Regular communication throughout the course of the engineering project will ensure that there is no loss of control.
Have you outsourced an engineering project in the past? If yes, how did it go? What were some of the advantages that your company enjoyed by outsourcing? Let us know your views on outsourcing by leaving a comment in the box below. We, at Outsource2india love to hear from you!
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