Engineering Services Outsourcing Trends in 2019
As with any other field, engineering has seen significant growth over the years. To keep up with the demands of modern living, engineering services outsourcing (ESO) trends have evolved to meet the needs of the construction and manufacturing industries.
Nowadays, business process outsourcing (BPO) has become a best business practice because of the convenience and efficiency it provides, bringing the industry’s global net worth to $85.6 billion in 2018.
What Is Engineering Services Outsourcing?
Engineering services outsourcing is the relegation of work required in every stage of a product lifecycle to a third-party service provider, from conceptualization to project retirement.
An important part of ESO is using information technology (IT) in many functions such as engineering design and product development. Automation is another important IT task that is integrated into manufacturing and construction projects. For instance, smart machines are built with IT services, which then prompts ESO to determine whether the machine needs maintenance.
There are many advantages to hiring an outsourcing services provider such as:
- Reducing overhead costs in labor and investment
- Expanding access to premium class technology and highly trained engineers
- Managing resources effectively and increasing flexibility
- Lessening turnaround time and meeting deadlines efficiently
- Enabling dedicated engineers to focus more on core activities
Five Engineering Services Outsourcing Trends in 2019
Diversified Services
ESO encompasses a wide range of engineering industries such as construction, automotive, aerospace and telecommunications, and it’s bound to include more fields over the coming months.
Emerging outsourcing services in engineering include operative areas such as product design, gas and oil, process engineering, utilities, industrial plants, prototyping, research and development, healthcare, infrastructure development, innovation, transportation and industrial design, among others.
Shortened Product Cycle
The main selling point to outsourcing engineering services is the outsourcer’s ability to deliver on time and meet deadlines set by the clients. Competition between outsourcing companies has become stiffer as they work to enhance their reliability on their engineering services.
The result is a much shorter product cycle while maintaining or improving quality. With the latest technology advancements and access to online education and trainings, outsourcers can complete tasks more efficiently.
Location-based Outsourcing
Onshore outsourcing or outsourcing companies within the same country is expected to have a higher compound annual growth rate in 2019 and beyond. On the other hand, offshore engineering services outsourcing does not fall behind as clients seek better returns for less costs.
ESO had a great year in 2018 and is expected to continue its growth as countries like India, Philippines, Brazil, Malaysia, Romania, and Russia employ highly skilled individuals with lower labor rates.
The large talent pool specifically in the Philippines encompasses a wide range of technical skills and software knowledge. This will allow your in-house team to focus more on project requirements and deadlines. Locating some or all your engineers, drafters, designers, surveyors, architects and other specialists offshore can improve the efficiency of your business while achieving significant savings.
Shift from Subcritical to Highly Critical Functions
ESO providers were previously hired by engineering firms only for low-level and non-crucial functions. But ESO has changed dramatically over the years as manufacturing and product development projects enable outsourcing providers to become stakeholders in the product cycle.
Clients are now seeking end-to-end solutions and complex tasks that used to be off-limits to ESO providers. For instance, outsourcing providers may now be asked to design and provide IT infrastructure, perform CAD drawings, provide manufacturing solutions, and develop technology-embedded systems.
More Collaborations and Partnerships
Engineering services outsourcing firms are strengthening the industry’s core by building partnerships with other firms to provide better services to end-users. The collaborative effort in terms of co-innovation, shared financial risks and congruent business outcomes are all growing instances in the industry.
This has prompted a closer relationship with clients since ESOs invest more in collaborating with professionals to improve the services they provide. This also enables a client to choose and discuss the best possible solutions that will align with their own business goals and objectives.
Final Thoughts
Engineering services outsourcing trends of 2019 are taking the engineering industry to the next level, what with tailored solutions and highly improved knowledge and skills. Technology advancements are also pulling up the engineering industry’s capability to develop better projects for the satisfaction of end-users today and in the future.
If you are looking for a world-class outsourcing provider for your civil engineering needs, Yempo could be the right partner for you. Send us a message today and learn more about our engineering outsourcing services.