Offshore Outsourcing in Global Design Networks

Researchers have examined the benefits of outsourcing engineering design services from various perspectives. However, the process by which complex engineering design work is outsourced across international boundaries requires further investigation. In this paper we examine three offshore outsourcing design projects involving a design team in the United States outsourcing part of the project design to an offshore design vendor. We analyze empirical interview data and primary documentation to induce a set of eight key issues associated with outsourcing engineering services across national boundaries. We further analyze variances in the perspectives of the client and the vendor and identify important differences. The findings highlight the importance of addressing (1) vendor concerns over trust development and knowledge sharing; (2) client concerns over quality control, communication, and schedule control; and (3) shared concerns over cultural barriers, role redundancy, and design practice norms. Understanding and addressing offshore outsourcing issues in global design networks is critical to enhancing the efficiency and profitability of complex engineering services outsourcing.