Engineering Services Outsourcing – Increase in Engineering Outsourcing It has been estimated that the dollar value for engineering services outsourcing round the globe, through the captive engineering centers, joint ventures and traditional outsourcing connections with organizations of local eminence, will be on the rise in the near future. Going by the current calculations, the industry is predicted to increase from a total amount of $40 billion recorded in 2007 to about $80 billion globally by 2011. A study conducted by Booz Allen Hamilton and Nasscom done in the year 2005, reveals that gradually as the level of engineering expertise increases, the various kinds of services that are off shored will also develop in variety and quantity. Together with this, industries that are looking forward to off shoring the engineering needs too would increase. One of the primary causes for the increasing engineering services outsourcing is the purpose to reduce the operational cost and other allied expenses. It is a fact that engineering services are expensive by nature. To add on to that the scope for reducing the labor costs solely by transferring services offshore appeared significant to many organizations. Ninety-six percent viewers of the Nasscom and Booz Allen Hamilton study highlight low costs as a key factor for outsourcing the engineering services. Other allied reasons are attributed to access of overseas market, networking and sharing of a wide talent pool. Traditionally the vertically integrated industries such as aerospace engineering, marine engineering and automobile engineering have shown less progress in outsourcing engineering services. This is because of the lack of proper technological expertise that would assist in linking engineering hubs and help in mitigating certain legal and commercial concerns. Today the engineering sphere has seen the emergence of numerous engineering consultancy services that deals in providing helpful solutions in engineering services outsourcing. They provide help in various sections that includes concept design, product analysis, civil structure, aerospace solutions, industrial products, product detailing, and other transportation, oil and gas engineering industry needs. They have a sound research and development department in place that helps in new age and innovative solutions that offer quality service and are cost-effective. However, there are companies that provide efficient solutions in outsourced engineering services. They deal in various aspects such as product analysis, concept design, product detailing, civil structure, industrial products, aerospace solutions, and other requirements in industries like transportation, oil and gas and many others. There is an efficient research and development team assisting in framing global engineering solutions to client that are better in quality, faster and cost-effective. Few other services that are offered by eminent engineering companies are as follows:•
Detailing and Design
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Embedded Systems
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Special Services
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Technical Publication
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Manufacturing Services
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Engineering Analysis
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Sustenance engineering
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Process and Plants
Clients and users can enjoy numerous benefits of these services and products. Few of them are listed below •
Knowledge retention
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One can shift to the variable cost model
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Manpower flexibility
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The product development costs are minimized
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Greater attention given to core activities
Market experts are of opinion that in the forthcoming years engineering services outsourcing will expand at a rapid pace. It is calculated to be approximately 70 per cent more by the year 2015. Other Links: oil and gas engineering, aerospace engineering