Outsource Engineering Service

[outsourceengineeringservice-blog]

The Importance of choosing the right outsourcing engineering company

While outsourcing an engineering process to an offshore location,  your choice of  the outsourcing partner becomes very important.  This is because, if the vendor selection has been made without due thought,  you may end up with an outsourcing deal that has gone horribly wrong.  The very nature of engineering processes call for state-of-the-art infrastructure, highly qualified human resource and above all an outsourcing model that suits your individual requirements.  If any of these attributes is not fulfilled, not only does the whole process go for a toss, you may also incur huge financial losses.  So, when it comes to engineering process outsourcing, engaging with the right outsourcing vendor attains the utmost importance.

To make a success of your outsourced engineering process,  you need to give due importance to some basic attributes of the vendor.

Importance of the right outsourcing destination

In the process of selecting the right engineering outsourcing company, the choice of destination is very important as the very success of your endeavor depends on the right destination.  For example, while outsourcing your electronic engineering process, if you choose an offshore location that does not have enough engineering talent, the results can be devastating for your business. Similarly, the whole purpose of outsourcing may be lost completely if the outsourcing location is devoid of adequate engineering infrastructure.  You should also consider any ongoing political strife in the country where you want outsource your engineering process.  So, it is important that you choose a destination that is rich in talent and infrastructure and at the same  time  is a stable democracy. 

Importance of exact skills sets

Engineering processes demand highly qualified human resource and to outsource such tasks you need skill sets that meet the requirements of the process you are outsourcing.  You cannot expect your engineering process to  run  smoothly unless you find the right skill sets.  This is  because engineering products  and services rely heavily on accuracy,   and only a perfect match of skill sets can give you accurate results.  So, while choosing an offshore outsourcing partner, it is important that you go for a vendor that can fulfill your skill set requirements.  

Importance of the right outsourcing model

The success of your outsourced engineering process depends on the service delivery model of the vendor as well.  Remember that any sort of  engineering process is a high end work that requires your direct involvement with the real people working on the process.  Besides this, every engineering work involves processing of critical data and generates intellectual property.  So, the ideal service delivery model is the one in which you get direct access to the resources working on your engineering projects and at the same time one that ensures the safety of your critical data and intellectual property.  In a nutshell, you should go for a service provider that lets you hire remotely working dedicated engineers who work exclusively for you from a well equipped office. 

So if all these important attributes are ticked in your checkbox, you can be sure that you have chosen the right outsourcing partner.

[outsourceengineeringservice-blog]

Why India is set to dominate aerospace engineering outsourcing?

Over the last decade, the outsourcing industry has been witnessing a major shift towards high-end engineering services like mechanical engineering and aerospace engineering. Aerospace companies of the west are now willing to outsource their high end work to cheaper destinations. Contrary to the common belief, aerospace engineering is not all about spacecrafts and defense systems; it also plays a major role in development of systems related to civil aviation. Though the defense industry of the US is also showing interest in outsourcing, it is the civil aviation sector of the west that promises to be a major client of the outsourcing industry.

In the Indian context, aerospace engineering outsourcing has shown tremendous growth over the last few years. In 2010, the Indian aerospace and defense ITES sector was around a $30 billion industry and is expected to reach $50 billion by 2020. This is because India has a vast talent pool of experienced aerospace engineers. Bangalore is fast emerging as the hub of aerospace engineering outsourcing.

In terms of the kind of work that is being outsourced to India, design support and technical publication are the commonly outsourced processes to vendors. Outsourcing in avionics involves work such as embedded software testing, verification and validation. The western companies are also gauging Indian capabilities with multiple engagements of small nature but some companies are now increasing numbers with a chosen tested vendor. The other aerospace engineering processes that can be successfully outsourced to India are control system design, simulation, cockpit equipment support software and navigation systems.

A number of western aerospace companies are already tapping the Indian engineering talent by setting up their own units here. The main aerospace giants that are present in India are Honeywell and GE Aviation. These companies have been leveraging India’s engineering talent in the field of of embedded systems. Therefore, a large amount of work related to embedded software design and development and design support for embedded hardware is done from India. The number of aerospace engineers working in these offshore units is around 3000 and all the companies have good ramp-up plans for future. This is because India has a proven track record of producing quality aerospace engineers. The world class indigenous aerospace industry is testimony to this fact.

The Indian service providers are all geared up to tap the new opportunity of aerospace outsourcing. The Indian outsourcing majors like Infosys and Wipro are already catering to western aerospace companies. With their technological expertise and traditional strength in communications, the Indian service providers are poised to cater to the diverse technical needs of its aerospace customers. Defense related aerospace projects carry a huge risk of security; therefore, such projects will be outsourced to high end service providers with a proven track record of security. Here, the Indian public sector players like ISRO and HAL stand a good chance of forging long term ties with the western aerospace giants. All these trends indicate that India is going to dominate the aerospace engineering outsourcing in the time to come.

[outsourceengineeringservice-blog]

Why Should Engineering Services Be Outsourced?

As the West is battling a severe shortage of engineers, Engineering Process Outsourcing (EPO) is  increasingly becoming a need for the Western engineering firms.  Battered by the shortage of manpower, the engineering firms across Europe and America are finding it difficult to stay in business.  The pressures of  the recent economic slowdown are also prompting the engineering firms to outsource their business processes.  Therefore, an increasing number of Western companies are taking up outsourcing of engineering processes as a strategy to stay afloat and scale up their businesses.  By doing so, companies save valuable time and money and utilize these resources in strengthening their core competencies.  The other main benefit of outsourcing  engineering projects is reduction in overhead expenses and product improvement costs.

There are a host of reasons for Western engineering firms to outsource their projects, some of which  are:

Severe dearth of engineers in the West:  Off late, the West has not been able to keep up with the increasing demand of engineering professionals.  Therefore, the western engineering industry has been witnessing a steady decline in human resource. Consequently, high quality engineering products and services, which have been the forte of the western industries, have started taking a hit.  Due to the talent deficit, the engineering industry has suffered major losses.  To address this lack of talent,  the engineering firms will have to embracing outsourcing as their savior.  Therefore, engineering processes of all sorts – be it automotive engineering,  structural engineering or mechanical engineering will have to be outsourced extensively.

Pressure of competition:  Every engineering company wants to stay at par with the competition to hold on to their respective market.  However, this has become increasingly difficult for western engineering firms due to the high cost of human resource.  This  stumbling block can be removed only by outsourcing of engineering processes to low cost destinations.

Need to cut cost:  To maintain the market share,  the engineering companies have to  keep the price of their products and services affordable  for the end customer.  While the cost of raw material is out of the control of engineering firms, the only solution for them is to somehow reduce the cost of human resource.  This is  where outsourcing comes into the picture and provides quality human resource at a cheaper price.

Pressure of economic downturn:  The economic slowdown has further added to the woes of engineering companies.  Marred by consistent decline in the sales graph, the engineering companies across America and Europe are struggling to hold on to their dwindling fortunes.  This struggle has pushed some small players to the brink of closure.  Therefore, outsourcing of  engineering services has become an absolute necessity for such companies.

Offshore locations offering lucrative solutions:  Offshore locations like India have ample  availability of manpower to take care of engineering projects of any size. Also, the outsourcing solution provided by the vendors suit the needs of both large as well as small companies.  Therefore, an increasing number of engineering companies are turning towards India to save their businesses.

All these reasons are enough to indicate that the engineering industry of the West can not just gain a lot by outsourcing its business processes but can  also ascertain its future.