To reap the benefits of outsourcing you first must sow the seeds by selecting a partner to work with. This is a critical step which we will look at further in a future post. After you have selected, you need to strategize and plan how your partner will participate in helping you achieve your strategic goals. Let’s examine some key business goals and see how outsourcing, done well, can help.

Grow your Business: There are several ways that outsourcing can help you grow your business. The most obvious one is that it can reduce your costs making your offering more competitive. In an international market cost is a major factor in selection.

Outsourcing can also provide better quality, another key component in growing your market share. It can do this in several ways. Your partner should have access to more technical resources, more robust systems oriented to delivering engineering services, and a workforce that includes a wide variety of technical skills that you may not have access to. In addition, they can also share experiences they gained in other markets. They may even have accreditation for standards around the world that you may not have, etc.

Your partner can also help you to access markets where they are doing business that you may not have entered. They can introduce you to other companies with which you can develop a synergistic relationship. A great partnership should help both companies to grow.

Reduce Risks: Technology is changing at an increasing rate. Companies need to have access to the talent necessary to stay ahead. The cost of acquiring and maintaining human capital is growing. Demand fluctuations can cause huge disruptions in a business that outsourcing can mitigate.

Competition is a huge risk and can come from all over the world. Price and technical competition can both be reduced by having the right outsourcing partner. Your partner can mitigate both the cost aspect and the technical talent risk. They can acquire talent faster and less expensively. The right partner also has access to people who are working on the leading edges of technology. Fluctuations in demand need not negatively affect your workforce or the cost of maintaining it.

Reduce Time to Market: Whether it is product development/proof of concept, the delivery of a project, or completing some engineering service faster, a good partner can help you complete your work faster and get revenue sooner. In today’s world, a large percentage of the electronics engineering work can be done remotely. Documentation, design, drafting, panel building, programming, etc. can be done by experienced people at a lower cost offshore. Requirements can be given during the day in the U.S. and delivered overnight from around the world.

Increase Workforce Flexibility: The value of a company’s technical resources has never been more valuable nor costlier to acquire and maintain. Because of the rapidity of technological change, a workforce skilled and experienced today may become outdated or superfluous tomorrow. GE, Siemens, ABB, Rockwell Automation, Fanuc, Honeywell International, Emerson Electric Co., Schneider Electric, etc., could develop something new that makes a portion of the skills that the current workforce has obsolete. Outsourcing can mitigate this risk. Likewise, a company can focus its own resources on areas that are most strategic or core to the business and outsource the ones that are less important.

To reap the benefits of outsourcing you first must sow the seeds by selecting a partner to work with. This is a critical step which we will look at further in a future post. After you have selected, you need to strategize and plan how your partner will participate in helping you achieve your strategic goals. Let’s examine some key business goals and see how outsourcing, done well, can help.
Grow your Business: There are several ways that outsourcing can help you grow your business. The most obvious one is that it can reduce your costs making your offering more competitive. In an international market cost is a major factor in selection.
Outsourcing can also provide better quality, another key component in growing your market share. It can do this in several ways. Your partner should have access to more technical resources, more robust systems oriented to delivering engineering services, and a workforce that includes a wide variety of technical skills that you may not have access to. In addition, they can also share experiences they gained in other markets. They may even have accreditation for standards around the world that you may not have, etc.
Your partner can also help you to access markets where they are doing business that you may not have entered. They can introduce you to other companies with which you can develop a synergistic relationship. A great partnership should help both companies to grow.
Reduce Risks:Technology is changing at an increasing rate. Companies need to have access to the talent necessary to stay ahead. The cost of acquiring and maintaining human capital is growing. Demand fluctuations can cause huge disruptions in a business that outsourcing can mitigate.
Competition is a huge risk and can come from all over the world. Price and technical competition can both be reduced by having the right outsourcing partner. Your partner can mitigate both the cost aspect and the technical talent risk. They can acquire talent faster and less expensively. The right partner also has access to people who are working on the leading edges of technology. Fluctuations in demand need not negatively affect your workforce or the cost of maintaining it.
Reduce Time to Market: Whether it is product development/proof of concept, the delivery of a project, or completing some engineering service faster, a good partner can help you complete your work faster and get revenue sooner. In today’s world, a large percentage of the electronics engineering work can be done remotely. Documentation, design, drafting, panel building, programming, etc. can be done by experienced people at a lower cost offshore. Requirements can be given during the day in the U.S. and delivered overnight from around the world.
Increase Workforce Flexibility: The value of a company’s technical resources has never been more valuable nor costlier to acquire and maintain. Because of the rapidity of technological change, a workforce skilled and experienced today may become outdated or superfluous tomorrow. GE, Siemens, ABB, Rockwell Automation, Fanuc, Honeywell International, Emerson Electric Co., Schneider Electric, etc., could develop something new that makes a portion of the skills that the current workforce has obsolete. Outsourcing can mitigate this risk. Likewise, a company can focus its own resources on areas that are most strategic or core to the business and outsource the ones that are less important.

Increase Responsiveness: In a fast-moving economy, the ability to grow rapidly can be a survival issue. India, for example, graduates fifty percent more engineers per year than the U.S. Having access to this workforce can be critical to a company. In software, the U.S. companies grew because they had access to a workforce large enough to handle the explosive demand. If you can’t grow to take advantage of a change in the market, someone else will.
Choosing the right partner is the seed that grows into a large tree of benefits. Companies that can provide local, nearshore and offshore resources can help you balance the cost/time to market/risk tradeoffs to optimize achieving your goals. Successful managers are the ones who accomplish strategic goals.
Increase Responsiveness: In a fast-moving economy, the ability to grow rapidly can be a survival issue. India, for example, graduates fifty percent more engineers per year than the U.S. Having access to this workforce can be critical to a company. In software, the U.S. companies grew because they had access to a workforce large enough to handle the explosive demand. If you can’t grow to take advantage of a change in the market, someone else will.

Choosing the right partner is the seed that grows into a large tree of benefits. Companies that can provide local, nearshore and offshore resources can help you balance the cost/time to market/risk tradeoffs to optimize achieving your goals. Successful managers are the ones who accomplish strategic goals.

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