Engineering outsourcing has always attracted manufacturers as a cost-effective opportunity to leverage their capabilities and develop competitive products in the market. Since 80’s manufacturers took the route to transfer blue-collar manufacturing activities to lower cost regions of the world, and today, it has become one of the important decisions amongst most of the manufacturers.
However, the outsourcing process for engineering activities has become much more matured with increased number of service providers emerging across the globe. Apart from low cost advantage, outsourcing opens the opportunity to discover global talent pool to assist in product innovation.
The most common engineering activities being outsourced by manufacturing firms are typically the ones that are not considered as core. Some of these include hand drawn sketch to CAD conversion, CAD drafting, 3D modeling, technical documentation and manufacturing support. However, with increasing pressure on manufacturers to reduce the product development time and costs, a new trend in engineering outsourcing is shaping up, which mainly includes computer aided simulations for product testing.