“BIM outsourcing has become increasingly common business strategy which involves many more issues than just financial ones. In architectural practice, as pressure to save money mounts and cost-cutting alternatives become more limited, it is inevitable that you will have the discussion about outsourcing at some point, if you haven’t already”
What-if an outsourcing provider doesn’t complete your project on time? What if they don’t do accurate work? What happens if you get sued because of work that an outsourcing provider gives you? These are all complex questions and ones that your lawyers probably haven’t thought of yet! Depending on what country you’re outsourcing provider resides in, you may or may not have any legal recourse, so it’s best to think about these types of factors now before you embark on an outsourcing arrangement.
There are many number of business reasons why it might make sense for a company to outsource part of its operations. And in the current mode of operation, in which companies are trying to minimize costs and keep head counts low, outsourcing does offer the advantage of simply hiring temporary help that can be easily let go later. This is typically where the savings in an outsourcing context occurs. These savings simply are due to using a cheaper labor source at another location, usually in another country.
Many senior management teams seem to think of outsourcing simply as a way of reducing cost but its not really true. They typically base this conclusion on the fact that outsourced labor is cheaper than labor in their own company. In order to really understand outsourcing, you must consider all the various factors of using an outsourced labor component. We’ll highlight some of those factors for you.The simple fact is that it has become easier than ever to staff up with an outsourced labor force that doesn’t have retirement benefits and pensions to fund.
Outsourcing is used throughout the entire process of design, documentation, project execution and facility management support.
If you’re working with an outsourced provider, how can you be sure that the workers will be as motivated to complete your jobs on time as you would be? Will you lose money if your outsourcing provider’s schedule slips? These are reasonable questions and ones that directly affect the quality and timeliness of the work your company can deliver using an outsourcing partner. This may not be a cost of outsourcing, but it is a risk liability that is assumed.
Just because you’re outsourcing a task doesn’t mean that the responsibility for it goes away. Somebody still has to manage the work and know where it is, when it’s done and whether it’s done right. And when your company is responsible for the actual work product, it is safe to assume that your company will perform these coordination duties. This is actually a cost that is brought on by outsourcing rather than a saving.
When you outsource a job, it is imperative that your outsourcing provider work to your standards; otherwise you’ll be spending all your time cleaning up the work they do. The question becomes, how quickly can your outsourced labor force adapt to your local standards? Will they already know your local drafting or code-compliance requirements? These are issues that you should address because they can cost substantial amounts of money if your outsourcing provider can’t deliver a product that meets your needs.