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Engineering services outsourcing

Cost savings
Companies that outsource services save on

a)Man power costs

Compared to the inhouse manpower costs, such costs at the service provider’s end are nearly always lower, the persons working on the assignment are specialists in their own field and no extra costs are incurred on extra office staffing.

b)Reduction in capital expenditure

Companies need not invest in expensive hardware and software which they may not be able to fully utilize particularly in case of high-end specialized software.

c)Lower overhead and operating costs

Reduced manpower and infrastructure leads to a direct effect in the reduction of overheads and operating costs.

Focused Growth
Companies can off load non-core functions and be more focused on critical activities. Engineering firms can focus on schematic designs, equipment selection, meeting with clients, construction administration, and pass on the detail engineering, drafting, analysis and other engineering services to specialized service providers that can do it more economically. Companies can utilize the resources thus saved to concentrate on increasing business and market share.

Use of extensive skilled and qualified personnel
Companies that outsource services have the advantage of having access to a wide variety of skilled and qualified personnel across various disciplines without having them on their payroll as permanent employees.

Improved Performance
Outsourcing providers employ manpower that is much cheaper and usually more skilled than the companies that have outsourced work to them. This leads to improved performance for the outsourcing company as it has the advantage of having its work executed by more resourceful personnel.

Access to advanced technology at no extra cost
You can get access to the most advanced infrastructure and technologies at no extra cost when you outsource. This leads to your work being carried out on the latest technologies and thus increases the level of your service.

“ Companies are doing it because they feel they can get better quality work for 50 percent of the cost. This is another way of making the US economy more efficient, more competitive, and more prosperous. Global Outsourcing is a growing business, in the past; US companies relied on foreign workers with H-1B visas to reduce costs. Now they are focusing on offshoring.”
- Bob Pryor, Vice-President and Head of Outsourcing practices for Cap Gemini Ernst and Young

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