‘Companies that view outsourcing as an easy way to offload commodity work are missing powerful improvements to be gained by working closely with service providers’- Professor Robert S. Huckman.
Historically manufacturing companies have always looked outside for new competencies, technologies and knowledge based on consultants and vendor-lead market trends. However, the striking question to ask- Is it always in the best interest to outsource your most important developments? Outsourcing or having established vendors is a proven strategy to gain quick competencies, technologies and services lacking internally in the organisation. It can lead to reduced learning curves for the organisation as experts can bring in required knowledge, technological capabilities and manpower to handle the project with little to no involvement for the organisation.
On the other hand, outsourcing technological developments can lead to stagnation for the organisation’s own competence development, end up as standard off-the-shelf software with little or no customisation and drown the innovative ideas internally in the organisation. According to a Forbes Article on competence management, companies might not want to involve vendors or consultants in the design of their competences as they would want to keep intellectual property in-house and not have someone else control their competitive advantage. Additionally, out-sourced developments can lead to higher lag times, multiple iterations and costs compared to similar solutions being developed internally.
Are you looking for inspiration to start creating your solutions internally? Get inspired by Lars Moller, General Manager of Service at Al Shirawi Enterprises for the webinar on- ‘’Improving Communications for better Field Service and Maintenance’’. He talks about why they decided to develop their Field Service Management System internally and the return on investment. He also talks about their internal development process of- ‘High Messaging System’, the field service management system, the customisations they have carried out and how they are improving it with Artificial Intelligence.