Mastering Engineering Service Outsourcing in the automotive industry

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Mastering Engineering Service Outsourcing in the automotive industry
7. Once running business relations are established with key automotive
customers, ESO providers should develop a clear and sustainable
cooperation model for subcontracting themselves with downstream
service suppliers. The smooth integration of low-cost/offshore engineering
facilities within their own value generation process will play
a key role for their future competitiveness.
8. To acquire a significant share of business from major automotive
companies, emerging market players in particular still need to develop
a spotless track record and domain-specific competence. Our market
study revealed that a successful approach to becoming a recognized
engineering service outsourcing provider is to establish a specialization
in selected domains and processes by taking over series development
tasks and later on expand into related areas.
9. Especially important for emerging market ESPs but valid also for established
market players it to get a grip on excessive engineer attrition
levels, to avoid loss of well trained resources and overall company
productivity.
10. Finally, consolidation within the ESO provider market is imminent, with
tightening business opportunities due to the market downturn. ESPs
need to come up with appropriate inorganic growth opportunities in
order to successfully overcome the market downturn and benefit from
the incorporation of needed domain expertise.