The Seven Ways that Construction and Engineering Companies Benefit from Outsourcing
In many cases, engineering and construction companies can benefit a great deal from outsourcing.
Access to a larger pool of talent and reduced expenses are just two of the advantages that come with this strategy. Outsourcing and offshoring have been common business practices for many years. As a result, countless companies have turned to this strategy in an effort to obtain a competitive advantage. However, outsourcing in the construction industry and the engineering business may be less common than in other areas. This is due to the specialised nature of this work. Of course, every industry has its intricacies, but construction and engineering tend to stand out in this regard. This line of work requires a very particular skill set, meaning it’s crucial to find the right people for the job. That might lead these companies to overlook outsourcing. Such businesses may believe they can’t benefit from outsourcing. However, that’s not the case. For instance, you may want to hire remote engineering staff. This can bring you the same benefits a company in a different industry would have. It simply comes down to working with the right outsourcer. As long as the outsourcer can fulfill the specific requirements of your industry, the benefits are numerous. Outsourcing engineering jobs and similar tasks can be very lucrative and can be just what your company needs to take the next step.
The Benefits
With engineering services outsourcing, you’re creating many opportunities for your company. These are just some of the advantages you can enjoy.
1. Access to International Talent
Many think outsourcing is only about cutting costs. Of course, this is a big part of it. But, there are other advantages that are just as important. One of them is gaining access to international talent. As mentioned, this is a specialised industry. Most projections expect Australia to face a talent crunch in construction and engineering. Outsourcing can make all the difference here. This is most obvious when you need to fill an obscure role. You may simply not be able to find the right candidate in your area. You can look in other parts of the country, but then you’ll need to convince that person to relocate. This isn’t an issue when you’re outsourcing engineering jobs. You can look internationally to find the right skills and avoid many problems. There is another benefit here. For example, you may be thinking about outsourcing civil engineering services. By looking at international talent, it’ll be much easier to find the people with the exact type of experience you need. This means that when you hire remote engineering staff, you’re hiring experts. These people won’t need to learn on the job. Instead, they’ll be ready to contribute right way.
2. Less Time Spent Finding the Right People
This benefit ties in directly with the previous one. When you outsource, you don’t only get more candidates to choose from. You also cut down on the time it takes to find the perfect candidate. That’s because your outsourcer will handle the brunt of the work. It takes time to recruit people. You need to post ads, screen candidates, interview them, and much more. Narrowing your choice down to the last few people isn’t easy. But, it’s easier if a recruitment expert is doing it. Your company may not have such an expert. It’s not critical for your day-to-day operation so your people may have other skills. In contrast, your outsourcer will have recruitment specialists. Those people will ensure the process runs smoothly. When you’re outsourcing engineering jobs, all you need to do is explain exactly what you need. The company you’re working with will handle the rest. And, they’ll handle it as quickly as possible thanks to their experience.
3. Cost Reductions
No overview of outsourcing would be complete without mentioning cost reductions. There is tremendous potential here for companies which specialise in construction and engineering. Outsourcing allows you to benefit from more affordable labour. That is the most obvious upside. But, it isn’t the only one. For instance, there’s recruitment. Not only is it quicker, but it’s also less expensive. Once again, the outsourcer will see to this. You also don’t need to worry about the equipment for your offshore engineering team or their office supplies. The list of potential savings is extensive, and this will always be one of the greatest benefits of outsourcing.
4. Less HR Hassle
Outsourcing construction estimating can be more affordable than bringing in a regular employee. The same applies to any similar task in this field. But, money isn’t the only issue here. Every in-house employee also means more work for your HR department. You have many duties and obligations to fulfil, and you need to make sure you don’t violate any of their rights. When you outsource, a large portion of this responsibility (and liability) won’t be on you. A good outsourcer will handle most of this work, freeing you from the hassle.
5. Enhanced Ability to Conduct Global Business Operations
Consider the following scenario. You’ve found an international client. But the client is from a country you’ve never worked in. Here, your best bet might be to outsource. Construction and engineering are intricate fields, meaning it’s a huge help to have relevant experience. If you and your in-house employees don’t have it, outsourcing may hold the key. By their very nature, companies which provide outsourcing services are global. This means they have people who have worked with clients from numerous countries. This experience can be an invaluable asset for your company under these circumstances. It’s not certain you’ll be able to find the ideal candidate, but outsourcing gives you much better odds than your local labour pool. There is another aspect to this. If you hire an offshore engineering team, the time difference between you can be significant. This may seem like a problem, but it isn’t. That’s because your outsourcer will ensure the team is available when you need it. In fact, rather than being a problem, it’s an advantage. Thanks to the time difference, your offshore engineering team can be hard at work outside your regular working hours. This gives you more coverage and can help with urgent projects. When you take your company to the global level, this can matter a lot.
6. Flexibility
No one will argue that a dedicated in-house employee is a great asset. Those are the people to build a company around. But that’s not what you always need. Sometimes, you just need to fill a specific role on a temporary basis. Hiring a regular employee in such a situation may be a waste of resources. It may also be difficult to find a person with the right skills and experience who’s willing to come in under such conditions. The ideal solution here can be to outsource. With outsourcing, you have the flexibility you need. You can manage your resources to suit your exact needs. There is no need to overcommit or settle for team members who don’t possess the right skills. Outsourcing gives you the exact resources you need and all the flexibility you could want.
7. Potential for Growth
Finally, another huge perk of outsourcing is that it can help companies grow. There are two main benefits here that relate to your expansion efforts. The first is greater focus. Running a construction and engineering business is a complex matter involving countless tasks. However, not all of those tasks will have a direct contribution to your company’s growth. You can take administrative duties as an example. It is vital to keep the administrative side of the business in order, but that isn’t something that’s adding more value. There are also many other time-consuming tasks which aren’t actively pushing your company forward. By outsourcing those jobs, you’re allowing the key members of your team to focus on the core aspects of the business. By letting the outsourcer handle the legwork, you can dedicate yourself to what really matters. Such as improving your operation and bringing in more clients. That is how outsourcing can help you reach the point where you can expand. The other benefit comes after that point. To be precise, outsourcing is the solution to many of the growing pains that expanding companies experience. To list but one example, consider your premises. If you were to bring in another 10 employees, your current office may not be large enough to accommodate them. This means you’d either need to rent more space or move to another location altogether. These can be a huge expense that you can avoid thanks to outsourcing. With a remote team, you don’t need to worry about the space. This means you can easily grow that team to match your rising demands. This is just one issue you can prevent, and there are many others.
Working with the Right Outsourcer Matters
As you can see, the general benefits of outsourcing extend to the construction and engineering business. This includes international talent, reduced costs, flexibility, and more. The crucial part is finding a partner that understands your unique needs. This is where we can help. Cybalink stands out among offshoring companies in the Philippines. That’s because we specialise in outsourcing solutions for engineering and construction companies. We understand the special requirements that come with this area and know how to meet them.
Get in touch today to book a confidential call with our co-founders Kim Lombardi and John Rodgers.
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Eight Questions to Ask When Hiring a Construction or Engineering Outsourcing Firm
Do you want to outsource construction work? Perhaps you have the need for an engineering outsourcing solution?
These are the questions you need to ask before choosing a provider. Outsourcing offers an array of benefits to your construction or engineering company. The lower cost of labour means that you have lower overheads for your projects. That means you can improve profit margins or make your pricing more competitive. You also gain access to a global pool of talented professionals who can help your company to grow. However, it’s crucial that you make the right choice when selecting a company to work with. With the right outsourcer, you’ll have access to amazing talent and the guidance you need to leverage it. But with the wrong outsourcer, it becomes difficult to find engineering outsourcing solutions. The same goes for those in construction. Remember that your outsourced staff still represent your company. They’re as much a part of your team as you onshore staff. That means their work affects your brand. It’s essential that you work with an appropriate partner to maintain your brand’s strength. It all starts at the interview stage. You’ll have the opportunity to ask questions of any outsourcer you consider. These are the eight that you need to ask to feel confident about the choice you make.
Question #1 – How Long Have You Worked in Outsourcing?
You cannot underestimate the importance of experience for outsourcing in the construction industry. The same goes for engineering. Both sectors have very specific requirements in terms of the talent they’re looking for. An inexperienced outsourcer may not fully understand those requirements. This question gives you immediate insight into the depth of the provider’s experience. Ideally, they’ll tell you that they have several years of experience. Plus, they may pull up some examples of clients that they’ve worked with. In asking this question, you’re also testing the breadth of that experience. While you’re looking for an industry specialist, you also want to work with someone who offers versatility. For example, an engineering outsourcing solution often requires more than just drafting. You may need to build an admin team or even create a human resources solution. Again, an experienced outsourcer understands these varied requirements and can account for them.
Question #2 – How Much Experience Do You Have in My Industry?
If you’re quizzing a specialist outsourcer, you may get the answer to this question when you ask the first question. However, this follow-up question becomes very important when talking to a general provider. As mentioned, you have some specific industry-related needs to fulfil. In some cases, a general provider simply won’t have the ability to find the right talent. You’re looking for any evidence that the outsourcer has done work for an engineering or construction company. If they claim they have, ask for more information. Ask them about the depth of their construction or engineering outsourcing solution. Discuss the specific challenges they faced when working in your industry. You’re looking for them to use relevant terminology and present specific challenges. If they go the generic route, it’s possible that they don’t have the experience that you require.
Question #3 – How Long Have You Had Your Clients For?
There’s no better indicator of an outsourcer’s quality than their relationships with their clients. A client that isn’t getting what they need will soon move onto somebody else. But if the outsourcer provides a great service, they’ll have several multi-year relationships. That’s what you’re looking for when you ask this question. The provider should be able to tell you about the long-standing relationships that they have with several clients. They may not be able to provide specific details due to confidentiality concerns. However, they should understand the importance of building partnerships. Furthermore, they should want to work towards long-term goals. Be very wary of any company that doesn’t have long-term clients. When you outsource construction or engineering, you’re looking for a provider to help you grow. An outsourcer that seems to end its partnerships after a couple of months may not be able to do that. Plus, these short relationships suggests previous clients didn’t get everything they needed.
Question #4 – Has Anybody Left Your Company?
This is the perfect follow-up question after asking how long the outsourcer has had their key clients for. With this question, you’re continuing to figure out what it’s like to work with the provider. Transparency is the key here. An outsourcer may try to tell you that they have a 100% hit rate with clients. Or they may try to brush over projects that didn’t work out as well as they’d hoped. In both cases, you have the right to feel a little sceptical. You know that not all business relationships work out. A provider that claims to have a perfect record might have something to hide. A good engineering outsourcing company will offer a more honest response. They’ll tell you that if they’ve had clients leave. Plus, they’ll give you the exact reason for the relationship breaking down. If they accept a portion of the blame, it’s actually a good sign. This shows that they learn from mistakes and aren’t likely to make them again. Of course, this question may also reveal issues that could cause you not to want to work with the provider.
Question #5 – Do You Have Any Specialities?
We’ve touched on the importance of specialities above. However, it’s worth asking the direct question. Whether you want to outsource construction or engineering, you need access to professionals. And those professionals often need to have certain qualifications. A specialist has more experience in finding what you’re looking for. There are other practical reasons for working with a specialist. A general provider could still offer what you need. However, they’re likely going to have to undertake a learning period to do it. You may have to spend time teaching them what to look for. That’s time that a specialist could spend on creating your solution. And again, the experience factor is at play here. Specialist engineering outsource providers understand the challenges in your industry. This leaves them well-placed to offer a great solution.
Question #6 – Can I Speak to Any of Your Long-Term Clients?
Third-party feedback is always helpful when you’re trying to make a decision. After all, your conversation with an outsourcer is essentially an extended sales pitch. They’re trying to impress you with what they’ve achieved. As such, you’re not getting an unbiased opinion on their true qualities. This question opens the door to that opinion. An existing client can paint a more realistic picture of what it’s like to work with the outsourcer. They’ll tell you about the specific construction or engineering outsourcing services they needed. Plus, they can tell you how the outsourcer confronts key challenges in the process. Unfortunately, some clients may have confidentiality agreements in place that prevent such conversations. In that case, look for testimonials on the outsourcer’s website. You may also be able to supplement this information with reviews that you find online.
Question #7 – What is Your Process?
You want your engineering outsourcing provider to demystify the process as much as possible. This question gives them the opportunity to do that. Most outsourcers have a fairly standard process in place for how they locate and recruit talent. Ideally, they’ll provide you with a step-by-step process with details about why each step is so important. Specialists should also be able to discuss steps that relate to their specialisation. Take those involved in outsourcing in the construction industry as an example. Ideally, they’ll tell you about the specific qualifications that they look for when outsourcing certain roles. This question also provides insight into the outsourcer’s workflow. You want to work with a company that matches your own workflow as much as possible. Use this question to find out how adaptable the provider is.
Question #8 – What Are Your Prices?
Lower costs are one of the key benefits of outsourcing. However, going for the cheapest solution possible isn’t always the best idea. Use this question to find out where the provider falls on the pricing spectrum. Those at the lowest end may have more concern for securing a contract than they do for fulfilling it. However, there are also some outsourcers who may charge more than they should for certain services. Try to get general quotes from several providers before asking this question. This should give you an idea of the sort of pricing that you can expect for your engineering outsourcing solution. If a provider offers a lower estimate, ask them why they’re able to make these savings. If they’re a long way above, quiz them on what makes them confident enough to charge more than the average.
Work With a Partner That Has the Right Answers
There’s a simple point to all of these questions. You want to find out as much about your potential partner as possible before signing a contract. That means understanding how they work and what they have to offer. The more confidence you have at the beginning, the easier it is to create a great outsourcing solution. Cybalink has the answers to any questions that you may have.
Get in touch today to book a confidential call with our co-founders Kim Lombardi and John Rodgers.
If you are considering outsourcing and find talent like Karl, start your outsourcing journey today with this e-book.
Ready to Transform Your Business?
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Book a free consultation!The Four Common Engineering Tasks That You Can Outsource
Can engineering outsourcing benefit your business?
These are the common engineering services outsourcing providers can help you with. Engineering is a profession that evolves on a constant basis. On a practical level, you have the introduction of new technologies. The rise of computer-aided design signalled a massive change for the industry a few decades ago. Today, technologies like VR may change things again. Fast adaptation to the evolutions we see in the industry is the key to success. However, you may run into problems when trying to build an onshore team. Talent gaps may put paid to your attempts to create a solution to a new generation of challenges. In many cases, the talent that you need is located further afield. That’s where engineering outsourcing becomes important. A good engineering outsourcing solution offers an array of benefits. Furthermore, there are several tasks that a specialist engineering outsource company can help you with.
This article examines some of the key benefits of outsourcing. Plus, it offers some insight into the key tasks you can outsource. How Do Engineering Companies Benefit from Outsourcing? It’s important to understand why engineering outsourcing can benefit your business. This will help you to make your decisions later on. There are several upsides to working with an outsourcer. These include the following:
Benefit #1 – Lower Labour Costs
For many engineering and construction firms, the cost of hiring onshore people can prove quite restrictive. Take Australia as an example. You may need to spend $100,000 per year or more on a qualified employee. This creates a marked overhead before they even do any work. This isn’t acceptable if your business operates on fine margins. High labour costs eat into any revenue that you make from your projects. That means lower profitability for your business. With engineering outsourcing, you can access talent of comparable quality at a far lower price. This reduces your overheads, which results in higher profits from your projects.
Benefit #2 – Better Time Management
Your company experiences constant time-related pressures. You have deadlines to meet and you have competition that’s constantly improving its time to delivery. A larger team can help you to confront these time-related issues. However, building that team internally takes a lot of time and training. Plus, an internal team can only work the same office hours that you work. Outsourcing to a firm that specialises in your industry drastically reduces the amount of time that it takes to build a team. That’s not the only time-related benefit. As your offshore team works in another time zone, they can often continue working when your onshore office closes down for the day.
Benefit #3 – Keeping Pace with the Competition
As mentioned, your company has to deal with competitors on a daily basis. They’re constantly working to adapt to new challenges and deliver a superior service. If you’re not doing the same, your competition overtakes you. That means you have less chance of landing major contracts. Your bottom line suffers when you fall behind the competition. Outsourcing offers you a competitive advantage because it allows you to build a team with minimal cost. However, it also offers you access to a wider array of talent that your competitors aren’t using. This means superior project delivery and happier clients. The end result is that your company attracts more business.
Benefit #4 – Access to a Global Talent
GradConnection’s Top 100 Graduate Employers 2019 report revealed some worrying findings. They found that universities only offered 13,200 undergraduate engineering courses in 2017. That marks a decrease of 2,500 places compared to 2013. And of those 13,200 offers, only 10,322 students accepted a place. There is a very clear message here. Australia faces an upcoming skills shortage, particularly in the engineering sector. This will only get worse of universities continue to struggle to bring talented students on board. You’ll be left to battle it out with other employers for an ever-narrowing pool of talent. With engineering outsourcing, you gain access to a global talent pool. Finding the right people becomes much easier. Plus, you’ll escape the talent crunch that looks set to affect Australian companies.
Engineering Tasks You Can Outsource
Now you know the benefits, you need to know about some of the engineering services outsourcing can help with. Here are four tasks that you may be able to outsource.
Task #1 – Revit Architects
Revit is a digital design software package that allows you to create detailed models. Companies that follow the Building Information Modelling (BIM) methodology use it regularly. BIM focuses on creating sustainable work environments that focus on collaboration. It’s a data-driven methodology that ensures the creation of more accurate designs. As an engineer, you’ll work with all sorts of professionals. These may include construction crews and architects, all of whom can contribute to a Revit model. In the case of architects, engaging an onshore third party can prove costly. Outsourcing such work lowers your costs and gives you access to more talent. Furthermore, the collaborative nature of Revit makes remote collaboration much easier.
Task #2 – Estimating and Quantity Surveying
Creating estimates for upcoming tenders can become a laborious task. This is especially the case for businesses that may quote on several projects all due at the same time. Furthermore, Quantity surveyors who provide the initial calculations right through to the final figures of a project are considered the economists of the construction industry. Responsible for managing many aspects of the contractual and financial side of construction projects. Onshore estimators and quantity surveyors tend to command high salaries for their expertise. With an outsourcing solution, you’re able to access qualified talent without spending as much as you would on an onshore employee. Working with a specialist makes it easier to find talent that has the qualifications that you need them to have. A great outsourcer will even provide training assistance to get the new team up and running.
Task #3 – Drafting
All engineering work has a host of designs to back it up. Over the course of a project, you’ll go through several edits and redesigns to bring things up to scratch. This is another area where outsourcing can help. Drafting includes a host of potential tasks. These include the following:
- Converting paper blueprints into computer-designed models and drawings.
- Editing of existing models to account for new requirements.
- Archiving of project drafts when they’re no longer needed.
- Concept creation.
- The building of 3D models based on 2D designs.
As long as you have accurate requirements, an outsourcing solution can help with all of this. You can engage talent overseas to work on models while you focus on working with the client.
Task #4 – Administrative Work
You may not want to use engineering outsourcing for drafting and estimating work. Many companies prefer to do this in-house so they have more control over the process. However, there are plenty of secondary tasks that a specialist engineering outsource company can help with. A great example of this is all of the administrative work that surrounds your projects. You’ll create page upon page of such work during the course of a major project. You have to spend a lot of time processing that paperwork before the project can move forward. You can outsource contract admin and find new admin assistants. And the tasks these new recruits can complete for you include:
- Document formatting.
- Scheduling.
- Data entry related to projects or employees.
- Travel management.
Relieving this paperwork burden means you can focus your time more effectively. Engineering outsourcing also allows you to complete these repetitive tasks at a lower cost.
What About the Risks?
As you can see, it’s possible to build a comprehensive engineering service outsourcing solution. However, there are also some risks involved. Failure to take them into account could lead to you working with a company that can’t provide for your needs. These risks include the following:
- Working with an outsourcer that doesn’t specialise in engineering. Ideally, you’ll work with a specialist that understands the industry. This ensures they know exactly what you’re looking for when you come to them for talent. Outsourcers with a wider scope often can’t provide that specific industry expertise.
- Trust is always a potential issue when outsourcing. It’s crucial that you trust your new team, especially if they’ll handle sensitive data on your behalf. This is where working with the right outsourcing partner becomes very important. Speak with them about the measures they take to ensure the team understands its duties to your company. Simply put, you can’t get the most out of a team that you don’t trust.
- Loss of control is another risk that you may worry about. When your team’s in a different country, you may feel like it’s a struggle to communicate instructions to them. A lack of oversight leads to a loss of control. That could lead to the quality of work slipping.
To mitigate these risks, work with an experienced outsourcer that has a track record in your industry. Ask plenty of questions and research the outsourcer. The more information you gather, the more secure you’ll feel in your eventual choice. Work with a Specialist Engineering Outsource Provider Today. As you can see, there are plenty of tasks that engineering outsourcing can help you with. Plus, the benefits you experience can place you ahead of the competition. You can gain access to more talent with lower overheads. That means your projects become more profitable and you can deliver work faster.
The key is that you work with specialists to mitigate the risks associated with outsourcing.
Cybalink Solutions can help.
We specialise in working with engineering and construction companies.
Get in touch today to book a confidential call with our co-founders Kim Lombardi and John Rodgers.
If you are considering outsourcing and find talent like Karl, start your outsourcing journey today with this e-book.
Ready to Transform Your Business?
Discover how Cybalink Solutions can help you achieve up to a 70% overhead reduction through our Philippine outsourcing solutions. Let's explore how to optimize your operations, lower costs, and increase margins.
Book a free consultation!