We must first emphasize that here we are talking aboutoutsourcing CAD projects, which is significantly easier thanoutsourcing software development or IT services (earlierarticles of mine have explained why).
This article also assumes that selection of the CAD providershas been completed with due diligence (the methods are describedin an earlier article).
As I mentioned in those prior articles, one of the mostimportant ingredients for successful outsourcing is managementof the ongoing project by you, the client. To quote from thosearticles (here 'outsourcer' means 'provider'):
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"This may sound obvious, but probably the biggest stumblingblock to offshore outsourcing is that after all the contractshave been signed, companies abdicate responsibility for projectsto the provider..."
--- Deepak Khandelwal, McKinsey, Worldwide
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TASKS IN OUTSOURCING MANAGEMENT:
(1) You have to assume moral responsibility for the project.
A very senior executive should be made the champion of the CADproject. S/he will need technical and administrative people tohelp with the project, and these people should be informed oftheir induction explicitly. Let's call this group of people "thetask force".
(2) The task force should define the objectives of the proposedCAD outsourcing.
Subjects to address:
* Which input documents will you be giving the provider?(Consider rough, dimensioned sketches, specifications andphotographs of included objects, written instructions on whatyou want in the output, libraries of CAD symbols, design rulesfor elements not in the libraries of CAD symbols, drawings orsketches showing how the objects in the target area interfacewith the immediate environment, sample output documents).
* Which CAD platform do you want the work done on?
* Which output documents to you expect?
* What is the weekly project schedule?
* At what interval do you want the provider to send you the workin progress?
* What is the procedure for acceptance of the product?
* What is your payment schedule?
* What is the payment method? (Check, credit card, wiretransfer?)
(3) The task force should put the above documents into acontract.
The contract should also contain non-disclosure clauses. Theprovider should sign and return the contract.
(4) Put robust communication mechanisms in place.
* Email is fine provided mailbox capacities are large. Without adoubt the provider should have a broadband connection, and ifyour CAD files are large and frequent, so should you.
* Instant messenger programs are good for discussion sessions.
* For frequent large volume transfers, one of you should have anftp server.
* If voice communication is required, try Skype (free).
* Both you and the provider should have access to a scanner fordigitizing sketches.
* You must also have each other's postal address and telephonenumbers.
(5) Have a procedure in place for conflict resolution.
(6) As far as possible, do not let go of existing staff becauseyou are outsourcing.
Identify unfulfilled skill needs in your organization when youfirst think of outsourcing. Explain to the relevant staff thatyou plan to outsource and that you will train them in thoseskills. If nevertheless some want to leave, they are responsiblefor their departure and not you.
(7) Be ready with support services and materials for yourproviders.
* For instance, you might have to send the provider files thatare in a format for which they do not have the openingapplication. You should have the software and staff to convertthe document into a format compatible with the provider'sapplication.
* At the beginning of the exercise, the provider will typicallyhave many technical questions. The task force should includestaff whose time is specifically reserved for providing theanswers.
* Be readily available to help as much as you can. This buildsconfidence in the provider's mind as well as a relationshipbetween you and the provider.
(8) Develop a partner relationship with the provider.
* You should be partners in achieving the overall goal... thiscould be cost reduction, process improvement, more time for yourcore business, expertise, flexibility and so on.
* Discuss this goal with the provider, ask for their views andtreat them like a department of your company.
* More research facts: In the first year, the important issuesare the contract, performance measurements and relationships (inthat order); by the third year, it's performance measurements,relationships, the contract.
(9) Budget for the outsourcing exercise.
Use this valuable observation to help you plan:
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" ... end users engaged in outsourcing indicate that, onaverage, users spend from 5 to 12 percent of the total contractvalue on managing the relationship"
--- The Yankee Group (in a recent study)
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CONCLUSION
* What we've just described represents the latest thinking onmanaging a CAD outsourcing project.
* The ideas are state-of-the-art and custom-made for today'sworld.
* We hope you use them and that thereby your businessexperiences a significant increase in efficiency, earnings andcompetitiveness.
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About the author:==================================================
Lakshman Balaraman, MSEE (University of Michigan), is ExecutiveDirector of The Magnum Group, http://themagnumgroup.net, anengineering and architectural design services company located atChennai, India.
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