When an organization hires another organization to conduct a task or an activity externally, this is called outsourcing. Offshoring is a form of outsourcing where you create an extension of your business or team in another location. In the case above, an organization hires another organization with a team, say in the Philippines, to complete tasks that would typically be done in-house.
There are quite a few different offshore or outsourcing models dependent on the outsourcing provider an organization requires. An example model would involve setting up an overseas division of your company and getting a local specialist to handle facilities, IT, labor laws, recruitment, and HR. At the same time, you retain control over quality and productivity.
This model works especially well for engineering services. What often comes with the skills required for engineering and construction roles is the high cost of labour. The high-cost salaries, longer recruitment drives and complex training don't allow an organization the freedom to invest in projects, build portfolios and establish client relationships. Nevermind the cost of setting up the technology, facilities and the time to manage these new employees.
The combination of advanced technology, increased access to specialists, lower ongoing costs and improved ease of communicating with staff makes outsourcing a great solution to the challenges experienced by construction and engineering companies.
Construction and engineering companies are facing an issue that is significantly affecting the industry's growth; labor shortages. Now more than ever, it is difficult for companies to recruit and train qualified staff, which in turn, is affecting the industry's capacity to innovate and evolve.This is where outsourcing comes in. Through outsourcing, organizations open up their field of recruitment from local to international markets. Essentially, you could go from a market of three available engineering specialists to hundreds. Roles you can outsource include:
Due to technological advances in recent years, the above roles all consist of tasks that can be achieved remotely. For example, a site estimator would prepare estimates and budgets regarding the overhead, building, and manufacturing costs of projects on programs or software like Excel. CAD operators use computer drafting systems to revise and draw the layout of exterior and interior models and so on.
As long as your outsourcing provider has the necessary technology and facilities that support streamlined communication between your offshore and onshore team, file-sharing processes that ensure workflow management and data security procedures in place, you can outsource to anywhere in the world.
When comparing outsourcing providers, whether they be in the Philippines or down the road from your organization, you need to ask the right questions to ensure they meet your outsourcing needs.Topics to cover include:
When considering where to outsource your engineering services, you'd be looking at factors such as English proficiency, specialist skill expertise and access to engineering technological tools, to name a few. This is where the Philippines excels.
There is a simple way to identify whether outsourcing is right for your construction and engineering services;Take a hard look at your engineering team and breakdown their tasks and responsibilities. Are there any tasks that are:
If your answer is yes, to any of the above questions, then outsourcing your engineering services is right for you. The great thing about partnering with the right outsourcing provider is that you can tailor how many employees you have at any given time, what quality work you expect, and the KPIs they need to hit. Although your offshore team might be on the other side of the world, you can still control the level of productivity and quality that they produce.
With costs being a significant obstacle for construction and engineering companies when planning for growth, outsourcing can be a solution. In fact, one of Australia's leading engineering companies used offshoring to grow from 5 to 80 quality employees in the Philippines, across 31 job profiles including accounts payable, purchasing, software development, IT service desk, resource estimation, accounting, document control, and human resource administration.
Business growth and efficiency improvement hints and tips delivered direct to your inbox.
There has been much discussion in recent months about whether the United States is in a recession. Based on the general definition – two consecutive..
Not so long ago, leading consulting firm PwC conducted a survey of almost 1,400 chief executives from more than 90 countries. It was the kind of..
Skip straight to the statistics summary