Study of engineering service outsourcing

Abstract

In last few years, Outsourcing has created enough buzz in board room and media. While benefits from outsourcing are established in some areas, it is growing to the new services and domain. As the benefit of outsourcing is proven without doubt, companies are looking at newer area of outsourcing. They have started to outsource their core activities. Engineering outsourcing is new area which is being considered as new wave of outsourcing. This report is a study of traditional IT outsourcing and Engineering outsourcing. It explains the basic difference between these two and how Knowledge outsourcing is growing fro India. What are opportunities and constrain and gap between expectation of outsourcing companies and service providers? The report is an attempt to answer these questions. The present study is presented in four sections. In first section deals without sourcing, its cost and benefit and different business model in practise. Second section outlines the market opportunity in engineering service and opportunity for India. Third section describe about Engineering Outsourcing, its evolution and difference with Business Process / IT outsourcing. It also highlights the challenge faced by management of these knowledge centric companies. As part of study a survey was administered to middle and high management of companies (Outsourcer and service provider). Results and its interpretation are explained in fourth section. At last summary and conclusion is given as separate section which discuss about the way forward for both the party in years ahead.