Outsourcing: Reducing the Risks in Difficult Times

With the Design Council’s latest findings that 54% of businesses are looking to design to ride out the recession, the importance and value of design is clear. But when projects come up that demand a broader skill set than you can access inhouse and budgets are tight, is outsourcing the solution? Or do the risks outweigh the ultimate gains?

Over the last 35 years, IDC has worked with clients when markets have been both buoyant and struggling. With experience on his side, managing director, Stephen Knowles, firmly believes that outsourcing can work for everyone as a stop-gap or project-by-project resource during difficult times. “The trick is understanding the risks involved with outsourcing, and putting in place several easy measures to ensure a swift route to success,” says Stephen.

IDC project’s director Brian Gough identifies trusting people offsite as one of the biggest fears faced by prospective outsourcers, “Getting a product just right goes a long way to boosting your sales, so entrusting part or all of its development to a new team can be a leap of faith.”

Brian emphasises two key points: to see the longer term picture and consider how a new team can add value in every way. “Outsourcing can offer a diverse pool of experts experienced in design, engineering, prototyping and more, ready to give advice and pitch in at any stage. With teams working collaboratively, as well as individually, relationships build quickly as you go along. It’s essential all round to make integrating with a company central to the process.”

With a multi-disciplinary team under one roof, customers often come to IDC with part of a project, keeping costs down and added value high on the agenda. Vincent O’Horo from IDC’s dedicated rapid prototyping service www.idcmodels.com , explains, “Prototypes are a great way to bring a product to life and check everyone’s happy with the outcome. With our SLA Viper Machine we’re able to turn around simple or highly complex models for next day delivery.”

At times like these, cost is an obvious concern. The risk of a project overrunning with subsequent spiralling costs and delays impacting on sales, is a worry.

But, says Stephen Knowles, careful planning can make outsourcing a financial and logistical blessing. “Avoiding hourly rates is sensible. Ask for a fixed price for part or all of a project. Wiser still is a results-focused payment plan which will also help keep your project within the desired timescale. Open the lines of communication and integrate to make sure everyone has the same goals. Putting clear, trackable objectives in place from the outset will prevent overrunning and set everyone’s minds at ease.”

Brian Gough isolates one other, often overlooked, outsourcing risk: the potential loss of new knowledge about markets, competitors and more, which could be reapplied in house. Brian concludes, “Collaborative working throughout the process enables the developed knowledge to be fed back to the client. Collaborative working means that there is a wealth of experience on hand. Making the most of a consultancy’s accrued experience can bring great value for money. Successful projects often develop into long term collaborative partnerships. Our longest client has been working with us for over twenty five years.”