Why should engineering services be outsourced?
For pretty much the same reasons why many other services – such as traditional business processes such as accounting and software development – are outsourced. (1) Cost, and (2) Ability to get better quality, through a vendor qualified in and focused on a specific engineering service domain. While cost was perhaps the most important aspect in business process outsourcing, in the case of engineering services outsourcing, the ability to get better quality from a domain focussed vendor is an equally important driving factor. But ESO is much more complex than BPO because of the complex nature of engineering design. Engineering services delivery revolves around technical skills, domain expertise and good engineering judgment. Engineering design work centres on product IPs of manufacturing companies. Most of the services outsourced are related to design services around patented products, design specifications or customised interiors of a total engineering solution. Can all engineering servic