Outsourcing Engineering Services – Risk or Safeties?

Outsourcing Engineering Services – Risk or Safeties?

Outsourcing has been in existence as lengthy as you remember, however it has received greater attention because of the revolution introduced in through the Internet. Outsourcing of engineering services hasn’t arrived at the size achieved through the IT services Industry yet, however it can achieve this.

The key driver of outsourcing may be the accessibility to inexpensive sources in third world countries along with competitive pressures exerted on organizations in developed nations. While the advantages of outsourcing are obviously manifold, it’s not safe from risks. A highly effective outsourcing strategy, therefore, must have risk management included in the availability chain.


The ecosystem and services information providers within the third world could be aptly referred to as ‘a couple of islands of excellence within the ocean of mediocrity’! The secret, therefore, is based on identifying agencies that represent these islands of excellence. It’s the intent want to know , to allow the readers to place the lighthouses and icebergs enroute to individuals islands.

Sources: In the essence, the company that a project is outsourced is just like the constituent team that’s engaged for delivery of this assignment. Therefore, an ideal way to distinguish winners in the ‘also ran’s would be to measure the key team people. Educational qualifications, diversity of labor experience, period of time using the firm and a summary of assignments performed by options are good indicators to evaluate the competence from the team.


Free lancers Versus Organization: If good employees was the only real check point, one may get your hands on ‘free lancers’ who don’t possess the backing associated with a organization. Free lancers suffice for small jobs every now and then, however they can’t be relied upon for big assignments requiring diverse skills inside a sustained manner. Mainly in the services industry, in which the requirement might be generic or specialized with respect to the kind of assignment, it’s imperative that execution be carried out with a team comprising multiple sources (with diverse abilities and perspectives). Therefore, you ought to search for organizations that have been in the industry not less than a couple of years. Size the business, registration with local statutory physiques, online presence and client list are the aspects to become examined.

Quality of interaction: Before engaging any firm from the developing nation, you should communicate with the client facing professionals in the firm. Minor although it may appear, clearness of communication, promptness of responses, knowledge of cultural variations, professionalism in approach and skill to supply legal documents for getting into contract are important signals and leading indicators of success from the association.

Location: The caliber of infrastructure varies around within the developing countries. Uninterrupted power, use of high-speed internet, accessibility to competent engineers and the opportunity to quickly add or replenish the competent resource pool possess a significant effect on the capacity of the agency to fulfil customer needs. Location from the agency inside a major metropolitan city is clearly desirable out of this perspective.

Software Licenses: There are lots of free lancers and small-time organizations that flout the advantages of buying licensed software with impunity. Most engineering services require special software for use and nearly every client in the developed country includes a policy of full legal compliance. So get a telephone that the commitment be acquired in the agency regarding legal technical compliance.

References: Assessment of sources, information on an business entity and excellence of communication are process indicators but aren’t sufficient predictors from the result. In connection with this, there’s nothing much better than past past performance. A customer list signifies only names from the clients, but doesn’t reveal the caliber of delivery and gratification from the client. It is advisable to look for contact persons from among the customer list and acquire an initial-hands feedback concerning the firm’s abilities and excellence of delivery. An optimistic reference from satisfied customers ought to be given high weightage in selecting a company to delegate your engineering services to.

Incremental approach: Despite an extensive assessment, there’d always remain a hazard in outsourcing engineering services assignments to developing countries. This comes from variations within the professional eco-system, the technique of execution, time zone variations and business cycles variations etc. Therefore, it is prudent to begin small , increase the connection to the knowledge acquired via a complete cycle of pre-award engagement, delivery, invoicing and payment.

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