The Importance of Establishing Clear Goals and Objectives in Engineering Services Outsourcing

Engineering services outsourcing (ESO) is an increasingly popular practice in today’s globalized economy. Many companies choose to outsource engineering services to reduce costs, increase efficiency, and access specialized expertise. However, outsourcing comes with its own set of challenges. One of the most essential factors in ensuring an ESO project’s success is establishing clear goals and objectives. This article will explore the importance of establishing clear goals and objectives in engineering services outsourcing.

1) What are Goals and Objectives?

Goals and objectives are two terms that are often used interchangeably, but they have different meanings. Goals are broad, overarching statements of what a company wants to achieve. Objectives, on the other hand, are specific, measurable, and time-bound steps that a company takes to achieve its goals.

For example, a goal for an ESO project might be to reduce development costs by 20%. Objectives that support this goal might include:

  • Reduce design cycle time by 15% by implementing a new design review process
  • Outsource PCB layout to a specialist provider to reduce costs by 10%
  • Improve quality by implementing a new testing process that reduces rework by 25%

2) Why are Goals and Objectives Important?

Establishing clear goals and objectives is critical for the success of an ESO project for several reasons:

2.1) Clarity and Focus:

Goals and objectives provide clarity and focus for the project team. They help everyone involved in the project understand what they are working towards and what steps they need to take to get there.

2.2) Measuring Success:

Objectives provide a way to measure the success of the project. By setting specific, measurable objectives, the project team can track progress and make adjustments as needed to ensure that the project is on track.

2.3) Alignment:

Goals and objectives help ensure that everyone involved in the project is aligned and working towards the same goals. This is particularly important when working with multiple teams or external service providers.

3) Pros of Establishing Clear Goals and Objectives in Engineering Services Outsourcing

3.1) Improved Collaboration:

Clear goals and objectives help facilitate collaboration between the client and the ESO provider. When everyone is working towards the same goals, it is easier to establish a productive working relationship.

3.2) Better Cost Control:

By setting specific objectives, companies can better control costs. Objectives help the project team identify areas where costs can be reduced or eliminated, without compromising quality.

3.3) Increased Efficiency:

Clear goals and objectives help streamline the project by reducing ambiguity and ensuring that everyone is working towards the same end goal. This can lead to increased efficiency and faster project completion.

4) Cons of Establishing Clear Goals and Objectives in Engineering Services Outsourcing

4.1) Lack of Flexibility:

Establishing clear goals and objectives can limit the flexibility of the project team. If unforeseen circumstances arise, the team may be unable to deviate from the established objectives, which could result in delays or additional costs.

4.2) Increased Administrative Work:

Setting specific objectives requires additional administrative work to track progress and ensure that the project is on track. This can be time-consuming and may require additional resources.

4.3) Additional Upfront Work:

Establishing clear goals and objectives requires additional upfront work to ensure that they are well-defined and achievable. This can be a challenge for companies that are unfamiliar with the outsourcing process.

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Conclusion

Establishing clear goals and objectives is essential for the success of an engineering services outsourcing project. Goals and objectives provide clarity and focus, help measure success, and ensure alignment between all parties involved in the project. While there are some potential drawbacks, the benefits of establishing clear goals and objectives far outweigh the costs. Companies that take the time to define their goals and objectives upfront will be more likely to achieve their desired outcomes and establish successful long-term relationships with their ESO providers.


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PRASANNAKUMAR SHANKAR
PRASANNAKUMAR SHANKAR

Prasannakumar Shankar is a mechanical engineer with more than 20 years of work experience. In addition, to BE in mechanical engineering, he has an MTech, EMBA, and MS degree (from the State University of New York at Buffalo). He has worked for global multinational companies for the automotive and aerospace sectors in India, USA and Japan.

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