Future of Engineering Services Outsourcing

Experts are of opinion that the future of engineering services outsourcing is in the strategic investments by outsourcing enterprises into reference product designs or product platforms. However, a section of people thinks that a mix of both these perspectives is important and that old redundant models are no more functional. Sometime back, outsourcing took place because of lack of infrastructure and cost savings. The future appears to be based on strategic alliances between the developers and the outsourcing entity. At the same time, certain important skills for instance mixing development design and market data are hard to locate and hire, but there is a huge requirement for the same in the industry today.

It is a fact that engineering services outsourcing has gone to a point of inflection where the capacity, cost savings and infrastructure are no more adequate to compete. Therefore, investing in reference designs and platform development would be a wise way to develop a business proposition resulting in lesser time to market and implementation risk because of modularization. As a result, there is the chance to procure more business that would lead to economic growth.

In the recent past there have been numerous engineering services outsourcing companies that had established Global Product Development centers around the world in order to leverage engineering resource availability and cost benefit offered by different locations in high cost and low cost areas. However, these companies excel in services such as detailing and analysis, concept design, civil structures, industrial products, civil structures, oil and gas transportation and many others. The Global Product Development team helps in offering better value-optimized solutions. Other benefits that these companies provide are-

1. Focus on core activities

2. Flexibility on work force

3. Quicker time to market

4. Minimized product development costs

5. Knowledge retention

6. Move to a variable cost model

Selected services offered by global engineering services are listed below-

1. Design and detailing

2. Engineering Analysis

3. Manufacturing engineering

4. Technical Publications

5. Sustenance engineering

6. Embedded Systems

7. Special Services

8. Plant and Process

However, when it comes to the prospects of engineering services outsourcing there is always the risk of choosing the wrong technology, market and platform to operate. These aspects need to be managed and analyzed well else, one cannot leverage the investments in future. The key to administer successfully this latent minefield is that the outsourcer is required to develop certain skills akin to that of a venture capitalist.

Other Links: aero engine services, aerospace manufacturing engineering