Why should you consider outsourcing engineering services​?

Over the years it has become good business practice to outsource traditional business practices such as: accounting, software development and even certain aspects of human resources for the following key reasons: cost and better quality through a supplier sepcifically focused and qualified in certain areas of expertise.

Until recently, many companies did not outsource their engineering activities because traditional perception dictates engineering is a primary technology that should remain in-house and have always been looked upon as the heart and soul of the business. Such approach by engineers and engineering management was the norm a decade or two ago and it seems to be the case in many companies even now. 

But, a change in this perception is in line with new trends as it seems to be taking place. The reasons being evident and that pertains to the fact that certain portions of projects must contain work packages, maybe of a routine nature, that need not necessarily be done in-house. If that is so, then it must be lucrative to get it done elsewhere. There is another important reason tipping the scales: South African companies and businesses have certainly realized that technical skills have become scarcer over the last few years. Many engineering professionals have emigrated or have retired from the work force. The numbers of the newly graduated engineers, technicians and qualified apprentices do not meet the national demand and these potential candidates do not have the necessary experience that the industry drastically requires. 

Outsourcing provides a flexible alternative. In addition to this, engineering managers realize that it is costing their companies a lot more as they have to increase the remuneration packages to try and retain skilled individuals because they compete against a number of companies that faces similar dilemmas. Another important factor: The work load in engineering offices often fluctuates and management has little control over these fluctuations as work load is normally determined by the volume of orders received.

Engineering is most likely to be the function that can gain considerably from outsourcing because it is certainly one of the most expensive divisions in an organization; it contains highly qualified and remunerated, innovative staff members whose skills in design, testing and development contribute to high quality products and services, and thus the success and future of the company. 

Clearly outsourcing makes sense as the principal goal of a business unit is to make a profit. A company should consider at least getting work of a routine nature done elsewhere, but outsourcing should only be considered where both the customer and supplier benefit from the arrangement. It must be a win-win
situation.

The remarkable development in communication (e-mail, video conferences, etc.) has made it possible that outsourcing could be considered on a national or even an international basis. The time is here to exploit these resources worldwide.