Outsourcing & Product Development Resources (Whitepapers)

Avoiding Cultural Misunderstandings

A report from the Deloitte Consulting estimated that 70% of the companies that have engaged in outsourcing identified cost efficiency as their main reason for outsourcing. However, additional Deloitte Consulting also found that around 66% of outsourcing projects fail the expectations or needs of the clients and the rate of buyers cutting the engagement short is as high as 78%. This data shows the difference in the viewpoint of the client and the vendor which eventually leads to the failure or premature termination of the project. Read More

Financial ISV Partnership

Due to the increasing complexity of the financial instruments globalization of the customer base and increasing complexity of the regulatory environment, financial services companies are becoming increasingly dependent on cutting-edge highly functional software products to maintain their lead in the markets. There are numerous companies in the software space that are building products, platforms and solutions for the specific requirements of these highly demanding customers. Read More

Looking Beyond Cost Savings in PEO (Product Engineering Outsourcing)

Thousands of companies, whether big or small, have been outsourcing a part of their departments and/or projects for years. Today’s outsourcing industry is expected to grow by 37% annually between 2007 and 2010 because it is much more specialized compared to outsourcing a few years back.
One growing specialization under IT outsourcing is product engineering. Many leading IT companies have strategically planned PEO in order to realize significant cost savings. However, most of them have gained quality and reliability as well. On the other hand, some companies have different experiences with outsourcing product engineering. Read More

Whitepaper on Outsourcing Best Practices

It has become very common for start-ups to begin their entire product development by leveraging companies offshore. From being a long-haul possibility for large corporations with deep pockets, offshore outsourcing is accepted as a natural phenomenon of business strategy for even the smallest of companies. Industry reports assess the offshore outsourcing to touch $150 billion in 2010, of which at least 13% will be contributed by start-ups in product engineering and specialized outsourcing services. Read More

Secrets in Choosing a Reliable Vendor

The main consideration of companies when deciding to outsource is to save money. Cost efficiency is on the top of their list of things to consider for a vendor. Thus, most companies end up collaborating with different outsourcing firms to cater to their different needs. However, recent studies have shown that there is a change in this trend as more and more companies now hire service providers that offers different services and can supply most of their companies’ needs. Read More

Secrets of a Headache-free PEO (Product Engineering Outsourcing)

Product engineering outsourcing is the practice of hiring and paying a third party to develop an application or business process, instead of shaping it in-house. Contrux Software defines the benefits of outsourcing as “improvement of company focus, acceleration of development times and access to expert software development capabilities.” However, just like any other kind of business, outsourcing product development has its own risks and factors for success. Read More

Six Important Skills Needed in PEO (Product Engineering Outsourcing)

In outsourcing product engineering, the most important thing that companies need to consider is vendor skills. Choosing the right set of skills can serve as an effective strategy for companies to achieve business objectives such as reducing time to market or lowering costs. On the other hand, choosing the wrong set of skills can cause sub-par project outcomes and mire companies in regret. Taking the necessary steps to ensure all projects are in good hands makes the difference between failure and success in PEO. Read More

The Future of PEO (Product Engineering Outsourcing)

R&D Magazine had a very insightful cover story on the future of outsourcing in their July 2007 issue. Entitled R&D Outsourcing Becomes More Strategic, the article reported on the result of its May 2007 survey on outsourcing. Interestingly, according to the story, 51% of those who responded to the survey disclosed that the major reason for their outsourcing is the expertise of the external or outsourcing companies. Manpower comes second on their list of reasons while third is workload. Surprisingly cost only came in on the fourth. The result of the survey indicates the current trend and the future of outsourcing. Read More

The Myths and Realities of Product Development And Outsourcing

The recent years have shown dramatic boom in product development and it seems most companies are changing and adapting this practice. The numerous benefits promised by outsourcing products and services are enough to lure any company to at least try this new system. Other companies, on the other hand, are forced to outsource their products just so they can be competitive in the market where their competitors are already outsourcing and dropping their prices. In the midst of all these, companies should be wary of some of the false promises of myths in outsourcing. Many outsourcing firms, especially those product development firms, can be misleading in their promises. Companies thinking of product development outsourcing should be well aware of what is real and what myths are. Read More

Tips for Managing Software Development

The success of offshore software development does not solely depend on the offshore teams. Most of the time, buyers blame the offshore teams if the developed software fall short of its expectations or totally fail. In most cases, buyers do not know that part of the success of the project depends on the proper managing of software development with offshore team. The keyword here is “with”; which means the development of the software should be managed by BOTH the buyer and the offshore teams. Read More

What Are The Best Practices In Managing Outsourced R&D Projects

By the 1930s, companies in the United States offered R&D services to the government on contractual basis. By 1999, R&D Magazine accurately predicted that, “outsourcing may become the next hot technological trend as corporate technology managers look for ways to support their strategic goals.” Then in 2001, it accurately predicted again that the “industry will continue to emphasize various forms of partnering and collaborations, including relationships with other industries, federal laboratories, and international facilities.” These predictions have proven to be quite on the mark since according to Partnering Forum, by the end of 2010 it is projected that over 40% of R&D will be outsourced in pharmaceutical industries alone. Moreover, it is estimated that at present, the United States medical industry alone outsources over $300 million in R&D and that an increasing rate is showing by the year. Read More

What is outsourcable and what is not

Product Engineering Outsourcing has come a long way and has evolved over the years. The process or phases from initiation to the closing phase vary, depending on the product and on the provider.
Product engineering outsourcing includes not just the mechanical, but also the electronic engineering field. Just like any other outsourcing industry, product engineering involves different phases. However, practically every phase in product engineering is outsourcable - from formulation of idea, to design and analysis, to simulation, conversion and documentation, to creating of prototype, to quality assurance testing, to production, and to knowledge based engineering. Read More