Mastering Engineering Service Outsourcing in the automotive industry
Mastering Engineering Service Outsourcing in the automotive industry
Mastering Engineering Service Outsourcing in the automotive industry
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Market study<br />
Once <strong>the</strong> decision to outsource specific eng<strong>in</strong>eer<strong>in</strong>g tasks has been made,<br />
<strong>the</strong> selection of an adequate ESP is based on three basic decision factors:<br />
> Which provider can contribute <strong>the</strong> most up-to-date technological<br />
know-how, doma<strong>in</strong> skills and expertise or local market expertise?<br />
> Which ESP can provide <strong>the</strong> most cost-efficient solution?<br />
> Which ESP can contribute suitable and flexible resources to<br />
support <strong>in</strong>ternal development?<br />
The trade-offs among <strong>the</strong>se three dimensions must be weighed aga<strong>in</strong>st each<br />
o<strong>the</strong>r, as <strong>the</strong>y have a significant impact on <strong>the</strong> selection of an outsourc<strong>in</strong>g<br />
service provider. These factors are strongly l<strong>in</strong>ked to <strong>the</strong> content of <strong>the</strong><br />
eng<strong>in</strong>eer<strong>in</strong>g task to be outsourced.<br />
For more cost-driven approaches, predom<strong>in</strong>antly less complex and more<br />
standardized work packages are suitable for generat<strong>in</strong>g scale effects for<br />
<strong>the</strong> supplier while avoid<strong>in</strong>g <strong>in</strong>curr<strong>in</strong>g fur<strong>the</strong>r process management and<br />
transaction costs (e.g. 2D/3D CAD conversions, FEA mesh<strong>in</strong>g).
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