Why is Offshoring Product Engineering Solutions Essential for Business?

  Mar 2, 2018 4:24:34 AM

We are in an era of constant evolution; old technologies are getting replaced by newer ones at a frantic pace. Products need to be upgraded with new features to stay alive and competitive in the market. Whenever a new feature is required to be added or the product needs to be customized according to the needs or requirements of any particular sector or client, product engineering solutions are required.

Services Included in Product Engineering Solutions

Those companies that offer product engineering solutions advise or assist in all stages of the product life cycle. The solutions can start right from the inception stage to design, development, testing, and execution. The regular updates that are released about the product are also included in these solutions.

Here are few services that are included in the product engineering solutions:

  • Consulting in Software Product Engineering

  • Website Testing and Validation

  • Software testing

  • Product Testing

  • Customization and Integration

  • Quality Assurance

  • Software Product Upgradation

How Are Offshore Product Engineering Solutions Beneficial?

Offshoring product engineering solutions give companies the edge they need, in order to stay competitive in the market. Here's how these solutions are beneficial.

Cost: The major benefit of offshoring product engineering solutions comes in the form of cost-cutting. In the manufacturing of any product, nearly 70% of the total cost includes material and labor. If the company moves its operations offshore to a site where the material required is cheaper or the labor is available at lower costs, then they can easily reduce their overall manufacturing cost without compromising on the quality front.

Pricing: With lower production costs, manufacturers can adjust their pricing accordingly, which helps them capture bigger markets. It simply translates to greater sales revenues and hence a boost to the company's profitability.

Overseas Specialization Benefits: Outsourcing product engineering solutions is an ideal way to stay competitive in the market. This is because product engineers are up to date on the latest technology, apply it to give the quality results, and in the most cost-effective manner. When you offshore these solutions, you can leverage the best resources around the globe, which provide greater value to your business.

Scalability: Apart from deriving the cost and specialization benefits, moving operations offshore also allows the manufacturers to scale their operations as per the market fluctuations. As per the demand, the hourly arrangements can either be expanded or scaled back easily. Responding to the market demand in a cost-effective timely manner is difficult if you are concentrated only in a specific location. Moving key operations to offshore helps businesses to optimize resource use, development, and supply chain efficiency effectively.

Minimal Risks: When you try scaling your operations from a confined geography, you can run into the risk of ruining the overall profitability. This is because the scaling challenges like insufficient material or overproduction requires time and any production downtime can cost the company tens of thousands of dollars. With offshore production engineering solutions in place, this downtime is minimized and scaling risks are eliminated. They offer the flexibility required to overcome common challenges to cost. The companies also make use of other services offered by the production engineering solutions like lean product development and part standardization to maximize profitability.

These offshore solutions have brought a revolution in the way businesses conduct globally. Today, all organizations, whether big and small, are making use of these solutions for some of their processes.

It is a well-known fact that a single entity cannot be an expert in all domains. Even if it tries to do everything, it will affect both productivity and profitability. Thus, leveraging the resources available and taking help of specialists in a particular field is the best way to enhance productivity and efficiency. As these specialists are experts in their field and are updated with the latest happenings and innovations, they provide solutions that save your resources, time, and effort. They also offer solutions that help in improving the quality of your products in the most cost-effective manner, thus providing you with a competitive edge over your peers.

Businesses across the world are realizing the importance of offshoring solutions and are joining the pool. This sector is poised for robust growth within the next few years as businesses are ready to accept these solutions to derive value-added results. These solutions also provide them the required time to concentrate on their core activities, and other business objectives.

Author: Vidya Krithivasan, Manager-Portfolio, Product Engineering Services

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