Engineering, process plants, manufacturing and many other companies have long been engaging E professionals for specialized services, particularly where unique expertise that company required
Either was not available “in house” or they did not want “in house.”
On the other hand, routine functions were handled with internal resources. The transaction costs of engaging
specialized services to perform those routine functions outweighed the benefits of having that work performed and design tasks was internally. Moreover, the pool of domestic talent available to perform routine engineering
sufficiently affordable to justify hiring and keeping that talent on staff.
With advances in communication technologies and a global environment, things are changing. Today, companies reviewing their internal operations are considering their engineering and design functions on Par with other
internal business support functions that may have been or are in the process of being Outsourced. This examination
moves past traditional contracting structures for professional engineering And design work towards a more tightly integrated and highly leveraged use of strategic relationships to Discharge a higher volume of such work on a more routine basis. Engineering and design services are Becoming ripe for outsourcing – transferring responsibility for the performance of an in-house task or Function, usually routine in nature, to a third party for some period of time.
What are the business and legal issues that must be addressed with respect to the outsourcing of such Functions?
Outsourcing began with data centers but now extends to a variety of business functions.