10 questions to ask before outsourcing
Hiring temporary resources for any function is now a common practice throughout the United States. From entry level unskilled labor to virtual executives, companies are fitting temporary resources into positions once exclusive to full-time employees. The factory-automation industry is now embracing this business strategy.
While each situation differs, there are two key reasons for using third-party resources: Project loads and specialization. Few businesses are linear, with seasonal or project workloads that outstrip the organization's ability to execute. In the past, common practices were to hire and maintain resources sufficient to meet maximum demand, hire ahead of the growth curve, or stress the organization with extended (and expensive) overtime or forced hours. Even large businesses have trouble employing full time specialists in every discipline. And those specialists often work on other projects, or other locations, when needed.
There are four distinct levels of engagement for third-party technical resources. Project resources are temporary and engaged for a specific project, working under the direction of the client's project manager. Project engineering may be used for well defined projects, with deliverables and acceptance criteria. A consulting approach is most appropriate for problem-solving situations, where the task is to investigate and define an approach to resolve an unknown problem. And finally, outsourcing places full responsibility for a complete function under a third-party.
Once a decision is made to use temporary resources for factory automation, it is critical to match the assignment to the outside firm. Nontechnical resources, such as entry-level factory labor or clerical support, can be quickly trained on basic tasks and integrated into a business. The consequences from a ‘bad’ hire are relatively small, and can be quickly detected and remedied.
Not so with technical resources, such as engineering, design, simulation, programming, or consulting. Work performed by these specialists has a longer cycle, broader consequences in cost, schedule, and project performance and ultimate success, and is far more difficult to gauge in a short period. Temp agencies, one solution to temporary needs, scout and place individuals into positions. But they do not add technical value to the individual, the process, the project, or the customer. Their function is simply to scour the market, match resumes against key words the client provides, and act as a matchmaker.
Engineering companies deliver engineering, programming, software, and design services, form a self-contained business structure. Unlike a temp agency, the engineering-company infrastructure intends to add technical value to the individual, project, and client. The organization focuses on technical value added, quality, and project execution, not recruiting and resume processing. Engineers, programmers, and designers report to technical managers in a formal corporate structure that supports engineering operations.
Here are ten questions to ask before you use temporary resources.
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Are you engaging direct employees to work on your project, or are they passing through a temp agency?
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Has the company trained the resource, or is it just passing along a resume without real process knowledge? If there was training, was it done by a professional with field experience, or in a controlled structured curriculum, or both?
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Is the resource supervised and managed by technical professionals in the field, or are they a resume reporting to a clerk or administrator?
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Does the company offer continuing training for their engineers and designers, to keep them current on new products, technologies, engineering tools?
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Does the company provide technical support and backup in the engineering /design discipline? Who does the resource contact for assistance and support if they encounter a problem in the field?
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Does the company certify the resource as capable in individual robots or software packages? Is there an active testing and review process?
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Does the company own any robots? CAD software? Simulation software? Does the company have physical offices? Do they have a lab for training and certification?
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Does the company have an IT department that supports their engineers? Do the resources come to the project properly equipped with PC hardware and software?
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Is the company ISO certified? Do they have a controlled process to manage your project data? Do their employees operate under an ISO controlled process when working on in-house projects?
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Does the company have a project management structure? How are multiple discipline projects coordinated?
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© 2012 Penton Media Inc.
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