Nearly every industry that designs, engineers or manufactures is now, or will be, faced with the growing economic trend to outsource core and non-core activities. This out sourcing is spurned by the attractive “low-cost” solutions, most recognizably overseas. Perhaps the most financially challenged industry today is the U.S. automotive industry and consequently, has been engaged in overseas resourcing for many years. The question is, are they successful? It’s a hard question to answer but certainly a task that can be improved upon.

For years large Tier I automotive suppliers have been outsourcing engineering and manufacturing services overseas with mixed reviews. The idea is appealing isn’t it? Outsourcing 50%-80% of skilled labor to “low-cost” solutions at 20% of the cost.

From an upper management stand point the command is to “Spend less and save money.” So naturally, when a company or a country is describing their services or processes to be a fraction of the going U.S. cost table, any responsible manager would have to look at his or her options.

But from a middle management position the idea is not nearly as attractive. If they’ve tried this at all in the past, they know there are many variables that can take even the simplest task and cause havoc. I think it’s true with most companies that middle management is typically responsible with the success or failure of their deliverables. Often they are given directives and resources, without options, then commanded to make them work. Basically, set up to fail as there had been no effective method to manage these resources successfully.

The most difficult aspect of outsourcing services in any vertical is managing the information and direction. Furthermore, the secure transmission of proprietary data such as CAD models for parts or tooling should be critical and confidential. When dealing with long distance resources, add in the language barrier and time zone difference and you have yourself a real challenge. This is not to say it can’t be done but to realize there can be huge roadblocks that cause great pain when trying to manage any outsourced service.

But now there are tools and products available to help minimize risk, errors and liability in order to meet timing and cost deliverables. Web-based applications such as VinyasaMT, allow project managers, engineers, designers and suppliers to effectively collaborate within a secure environment from anywhere in the world. The concept of having your entire project team ‘on-line’ and ‘at attention’ with documented interaction is now saving hundreds of thousands of dollars as it identifies bottlenecks in progress and can eliminate misinterpretation of information.

One way to look at this is to envision a community journal with maps and formulas to a desired goal. The direction is clear and conclusive. There is a path and a destination. Global team members are electronically handed their orders and as managers, we can monitor and guide that team on a laptop from anywhere in the world.

With tools like these, progress can be updated by the hour. Data can be versioned and stored securely. Processes can be templated. Reports can be produced and made available. The collaboration is documented and can include everyone from the OEM to the Tier III supplier. And I believe that is the real key that is missing within the automotive industry to this point, simultaneous collaboration. It’s the enabler to on-time delivery as it brings global resources together in a managed environment.

How about the cost of an application with this power? Well, although it’s hard to find valuable products at affordable prices, it is encouraging to see the ease in which this type of “project management” tool can be purchased and implemented. Unlike large product lifecycle management tools or “PLM”, products such as VinyasaMT can be “pay as you go” with no internal infrastructure costs or software downloads. It’s called a ‘SaaS’ model, (Software as a Service) and can be turned on or off with a few keystrokes. Now there’s a concept, paying for something only when you need it! The right tools are priced right. And the right tools should not be a hindrance to progress but a key to the success of your deliverables.

It’s important to know that tools such as VinyasaMT can be implemented without elongated training, as well. SaaS products quite commonly are quick to learn and training can be performed via webinars or video tutorials. When working with the right product, even the webinars themselves can be private and include only your team members in order to best utilize the product you’ve chosen. The concept is not radical. It’s new, different and available with today’s technology.

So why haven’t other industries embraced this web-based “project management” model as of yet? Perhaps it’s because the competitive price pressure isn’t there yet. Or, that global resourcing has not been implanted within that entity. Maybe it’s because companies just don’t believe that they have to change the way they do business. Any of those reasons may be true, but I think for any industry that designs, engineers or manufactures, they should keep a good eye on automotive and recognize that the competitive nature of a global economy can, and will, be at their door. Overseas outsourcing may be necessary sooner than later. The question is, “Have you watched and learned enough to do it successfully?”