Clearly, engineering outsourcing comes with an array of risks that make it unpalatable for some companies. However, used wisely, engineering offshoring can give a company significant leverage over competitors, not only in lower labor costs but also in product and process innovation and through gaining a foothold in emerging markets. But given how critical engineering is to product design and development, offshoring and outsourcing cannot be taken lightly. By following the right steps, a robust and productive offshore engineering initiative can be built that will deliver the right outcome.
- Vikas Sehgal is a partner with Booz & Company based in Chicago. He specializes in product strategy, innovation, emerging markets strategy, and globalization for automotive, transportation, and industrial companies.
- Sunil Sachan is a principal with Booz & Company based in Chicago. He specializes in engineering offshoring, globalization, product development, and innovation, with a focus on emerging markets.
- Ron Kyslinger is general manager of manufacturing and director of corporate strategy for Comau Inc. Previously he was the senior manager of business strategy for Chrysler Corporation reporting to the office of the chairman.
- Also contributing to this article were Heral Mehta, an associate with Booz & Company in Mumbai, and Sreedhar Vangavolu, a contractor with Booz & Company in Detroit.