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Engineering Services Outsourcing -Changing the Global Scenario

Defined as an iterative process of design and re-evaluation engineering involves the stages of planning, design, manufacturing or construction, and finalization or deployment. Engineering services is one of the largest industry sector with almost all core engineering functions having an accompanying service activity. With an estimated value close to a trillion dollars the engineering services industry comprises of design and support services across industry verticals ranging from the Automotive sector, Telecom, Aerospace, Consumer electronics, Semiconductor, as well as Pharmaceuticals.

Though the vastness rules out outsourcing options the technological developments with enhancements and globalization of the enterprises, has led to various divisions and manufacturing units to be set up in various locations beyond geographical boundaries. The increased pace of industrialization and globalization has resulted in large number of organizations emerging as engineering outsourcing companies today.

By utilizing the best industry technologies and service functions related to core engineering processes such as computer aided manufacturing and design and auto design as outsourcing engineering services, these enterprises provides users with new age engineering products that are not only costefficient but also gives the competitive edge. However, efficient delivery of engineering services revolves around technical skills, domain expertise and good engineering judgment.

Surveys have shown that nearly 30% of the enterprises outsource engineering services especially design services, most of which are related to patented products, design specifications or customized interiors as apart of total engineering solution. Estimates also show that another 40% enterprises will opt for outsourcing of other engineering activities thus making the engineering services outsourcing as the fastest outsourcing markets.

Leading engineering services outsourcing providers with their innovative initiatives brings about costeffectiveness in the overall product development. With a team of engineering experts and delivery centers worldwide, these engineering services provides the enterprises support across the complete product life cycle from design and detailing through engineering analysis, prototyping, automation, data documentation, sustenance engineering to embedded systems development, and even manufacturing services support besides vendor management.

The growing need for engineering services to be outsourced, has brought an increase in the engineering outsourcing services. Basically because of this provides the client enterprises benefits such as ·

Outsourcing engineering services facilitates enterprises to focus on their core activities


Engineering services outsourcing brings about reduction in project time lines and lowers

labor costs with flexibility on manpower leading to reduced costs . ·

Facilitates better quality with support of a qualified and domain-focused vendor


Provides for knowledge retention


Enhances profitability with ability to move to a variable cost model

Further with the communication systems becoming more reliable, globalization today refers not just to products that can be manufactured elsewhere but also includes services that can be provided anywhere.

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Engineering Services Outsourcing -Changing the Global Scenario