Outsource Engineering

Most Machine Manufacturers use Engineering Service Outsourcing (ESO) as a common practice. Many Machine builders are unsure about how to outsource their engineering and whether it would work for their company strategy. This post will address the majority of your queries, give resources, and teach you the fundamentals of Outsourcing Engineering Services.

When a company opens up to new suppliers, it exposes its development requirements to new processes, technologies, and viewpoints that they would not have encountered otherwise. The burden of managing people, equipment, and real estate resources is lifted. In exchange, you must manage the outsource business and bear their additional costs of replacing your overhead. Keeping Engineering in-house allows for regular availability, concentration, and team growth of skill sets. 

Depending on your business model, there are several factors. To compare, the following are frequent pro and con aspects of engineering
outsourcing.

Engagement Models:

Broadly there are two ways you can engage the supplier.

Project/Task/Module based Engagement: You can outsource a Turnkey project, or a specific module or specific task

Alliance Based Engagement:

Developing ODC (Offshore Development Center) for your long-term projects which consists of multiple disciplines

BOT (Build Operate Transfer): Suppliers can also develop a team at their location and transfer to your payroll after a  successful completion of few projects.

How to qualify Outsource Engineering Firm? You can rate with these parameters and decide.

1-10 Can Supplier commit to your delivery date = 0

1-10 Is their cost in range of your budget = 0

1-10 Do they have other disciplines to add to your project = 0

1-10 How good is the communication, infrastructure and protocols = 0

1-10 What is the quality of their work = 0

1-10 Do they have your type of Manufacturing Experience = 0

1-10 Can they support in prototype? or supply part/products from local vendor

– Efficient

– Innovative

– Accurate

– Consistent

If you want more details to set up Offshore Development Centre or you need to find another supplier or you need to help in staffing, we can help you. Reach us info@proffereng.com, +1(219)221-8725, +91-9483863902