RO: Is Outsourcing Engineering Work a Viable Option?

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SUMMARY

This discussion centers on the viability of outsourcing engineering work, highlighting a significant trend where US companies increasingly delegate engineering and IT tasks to overseas firms, particularly in India and China. Participants noted that this practice is often driven by cost efficiency, as outsourcing can provide substantial savings compared to domestic hiring. The conversation also touched on the lack of legal restrictions surrounding outsourcing, allowing companies to remain competitive by leveraging global talent. Additionally, there were humorous suggestions about outsourcing executive roles to further reduce costs.

PREREQUISITES
  • Understanding of outsourcing dynamics in engineering
  • Familiarity with global labor markets, particularly in India and China
  • Knowledge of cost-benefit analysis in business operations
  • Awareness of legal frameworks surrounding outsourcing
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  • Research the impact of outsourcing on engineering project timelines and quality
  • Explore tools for managing remote engineering teams effectively
  • Investigate case studies of successful outsourcing in engineering
  • Learn about the legal implications of outsourcing across different countries
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Business leaders, project managers, and engineers considering outsourcing strategies, as well as anyone interested in the economic implications of global labor trends in engineering and IT sectors.

Frederick3
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I've been researching Outsourcing recently, focused towards Engineering specifically, and so I wanted to ask what you guys thought about it! Any ideas, opinions, or knowledge that you have about outsourcing or engineering companies that have outsourced would be most welcome. Thanks!
 
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I've noticed a sharp rise in companies that provide engineering and design services based overseas. They often have a partner in the US, either official or unofficial, that acts as a 'reception desk' for them. The US company takes the order and sends the work out. I suspect the same thing happens in European countries.

I've also noticed a lot of US companies going overseas and outsourcing all sorts of work such as engineering and IT support. If it can be done cheaper over there, the upper management of US companies often feel they have to send work out to remain competitive. There don't seem to be any laws that restrict it.

Personally, I think we should outsource our CEO's. Bet we could get a whole team of folks from India or China for the price of a single CEO in America.
 
Q_Goest said:
Personally, I think we should outsource our CEO's. Bet we could get a whole team of folks from India or China for the price of a single CEO in America.

along with about half of the middle managers directly below the CEO

dr
 
Frederick3 said:
I've been researching Outsourcing recently, focused towards Engineering specifically, and so I wanted to ask what you guys thought about it! Any ideas, opinions, or knowledge that you have about outsourcing or engineering companies that have outsourced would be most welcome. Thanks!

We typically outsource engineering work that we either don't have the manpower for or we don't have the tools for (i.e. specialized software for unique problems).

CS
 

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