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Engineering Services
Outsourcing (ESO) is no
doubt emerging as a very big business. But before we estimate
its potential, we need to understand the term ESO in greater detail. ESO
is not sub-contracting of manufacturing, as is commonly practiced in
the engineering sector. But has more to do with outsourcing of what has
been thought all along as a part of the core competency of an engineering
company, i.e., the outsourcing a part of the product design.
Engineering services can be defined as the support processes
associated with the design of a product or
service. Engineering services would also include services which could
increase the life or optimize the yield of products. Design of
infrastructure, process or equipment needed to manufacture the product would
also qualify under ESO.
ESO today looks at outsourcing the non-core part of the product
design. It must be remembered that, for a long time, it was not the practice
to even discuss with an outside organization the design of a product,
let alone allow an outside organization to design the product on one's
behalf. Yes, consultants have been used to help out in product design, but
they were just consultants and never a part of the product design team.
Of course, in the case of large projects, consultants would design and
also assist in the execution phase. But for manufactured products, the
design was a closely guarded internal affair of the company. |
