Engineering Services ? Sourcing through Global Centers


By: Rita Abigail Williams --

30 September, 2014

Engineering Services ? Sourcing through Global Centers

Engineering offshoring is not new to the construction industry. Although, offshoring is standard practice for most architecture and engineering firms, the nature of the engineering work offshored has evolved considerably, shifting from low complexity, routine engineering backend support tasks to more complex and skill intensive engineering requirements. Over the last few years, the basic business model ? offshoring of simple, stable and repetitive tasks, primarily designed to save cost of labor has witnessed a transformation to where complex, capital intensive functions can be effectively offshored. Low cost destinations are expected to continue providing significant cost savings well into the next decade. Project owners can potentially reduce 30% of the cost of overall engineering cost by exploring possible offshoring of complex engineering functions as well. These economies can be leveraged to provide sustainable cost reduction for complex engineering functions in addition to basic services, reducing overall engineering spend. An emerging trend observed in the past few years has been the setting up of exclusive engineering services hubs in low cost centers. Some pioneering companies have completely revamped their approach to sourcing engineering services to capital projects around the globe. These hubs have evolved to not only handle low end engineering support services, but have diversified and strengthened their portfolio to provide end to end engineering services, with at least 25% lower project costs.


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