In the competitive landscape of the Architecture, Engineering, and Construction industry, firms are racing toward finding ways to enhance cost-effectiveness, efficiency, and productivity for their projects. One such strategy that has gained traction is outsourcing.

As per research and market reports, the global market for outsourcing services is expected to expand at a compound annual growth rate(CAGR) of 5.54% during the forecast period 2020–2027, leading to a total market size of US$904.948 billion by 2027.

Why AEC Firms Often Dislike Outsourcing: Key Reasons Explained

Absence of Direct Oversight:

Outsourcing Projects and tasks might cause difficulty in maintaining the same level of quality control as the office team. It is concerning for the AEC firms that the outsourced team might not adhere to the elucidated specifications and quality standards specified by the clients.

Inconsistent Standards and Guidelines:

The standards and guidelines vary for different firms for various projects. Outsourced teams usually follow specific standards, leading to inconsistent outcomes that may require rework or adjustments.

Risk of Data Breaches:

Working with Outsourced team members requires the sharing of sensitive data which increases the risk of breaches or intellectual property theft.

Confidentiality Issues:

AEC firms must maintain the confidentiality of client information and project details. Outsourcing can compromise the confidentiality of such sensitive information, making it challenging to protect.

Potential Budget Overruns:

Outsourcing is considered a cost-saving opportunity, but it can include hidden expenses such as management overhead, rework expenses, and quality control that offset initial savings.

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Common Mistakes by Outsourcing Firms :

Outsourcing benefits the AEC industry in ample ways, however, various mistakes by the outsourcing firms can lead to significant losses to the AEC firms. Here are some of the common errors and their prospective impacts:

Unsatisfactory Work Quality

• Maintaining work quality is imperative in the AEC industry, and outsourcing firms might deliver substandard work that fails to meet the stringent quality standards.

• Poor work quality can lead to added rework costs, timeline overruns, and unsatisfied clients.

Communication Failure

• The communication failure leads to unsatisfactory deliverables, necessitating rework and amendments.

• Disruptive communication networks and time zone differences can result in inconsistent feedback and unresolved issues.

Disorderly Project Management

• The Outsourcing team might struggle to align with the project delivery timeline with disorderly project management, causing schedule overruns and increased costs.

• Lack of scope clarity and control over the project can result in scope creep where the scope of work keeps increasing.

Non-Compliance with Codes and Standards

• Outsourcing firms may not be familiar with certain local building codes, regulations, or industry standards.

• Ignorance of the required permits or approvals can bring a halt to the construction sites, leading to costly setbacks and legal disputes.

Remote Hiring: An Alternative Solution to Outsourcing

Remote Hiring refers to hiring a team or employees to work outside a conventional office environment with flexible working hours.

Hire architects and engineers with expertise in various domains as an extension to the internal team.

But, how can AEC professionals hire dedicated architects and engineers who are reliable and do not pose a threat to the commitments of the firm concerning finances and timelines?

Dedicated Resource Model

The answer to eliminating the outsourcing hassle is the Dedicated Resource Model (DRM) solution by Virtual Building Studio, enabling the AEC industry to hire the top 1% of architects and engineers who join your team within 3 days.

Benefits of adopting DRM solution

• Access to the top 1% talent pool of architects and engineers

• The selected professionals are tested for their logical and technical abilities and soft skills.

• The onboarding time is reduced to 3 days with no burden of recruiting and training

A successful integration of DRM

AECOM — a leading infrastructure consulting firm, faced difficulties like limited BIM expertise, project timeline constraints, and high costs for outsourcing architects and engineers. With the Dedicated Resource model (DRM) solution, they onboarded 50 architects and engineers in just 8 months.

Not only did the company overcome these obstacles, but also achieved enhanced team efficiency and competitiveness without increasing the budget.

Conclusion

The AEC industry landscape is constantly changing and so are the ways firms are handling projects. The developing technologies, strategies, and business can significantly contribute to a project but also raise questions.

Original Source : AEC Outsourcing Mistakes: Solutions & Alternatives

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