More A/E firms turning to outsourcing overseas

August 11, 2010

Outsourcing of project work offshore is rapidly becoming a common operational strategy for many A/E industry firms. According to a ZweigWhite survey of firm leaders, 42% of companies polled have outsourced some of their services offshore. A similar ZweigWhite study conducted in 2006 found only 19% of firms reporting offshore outsourcing experience.

"This increase of companies with international offshoring experience is significant," said John Doehring, SVP and head of ZweigWhite's Advisory Services Group. "Faced with a chronically constrained labor pool and mounting economic and client pressures, more and more firm leaders are considering outsourcing, seeking the benefits of reduced labor cost, increased capacity, and faster project turnaround."

Beyond those firms with actual offshoring experience, many other firm principals are now seriously considering the offshore outsourcing angle. Data from the new study indicates that only 16% of leaders have not yet considered outsourcing internationally, and only 12% indicated they were not interested in the option at all. Just two years earlier, 38% and 34% of survey participants reported those sentiments. Additionally, another 25% of the group has yet to rule out the possibility of outsourcing, up from 14% in 2006.

Study leader Susan Dell Orto said, "We have seen an increased level of interest and commitment to the offshore outsourcing option across the whole spectrum of firm experiences. And we expect this trend to continue. It seems that offshore outsourcing in the A/E industry is here to stay."

Download the study results at: http://www.zweigwhite.com/showproduct.php?productid=729&sename=offshore-outsourcing-in-the-aec-industry-summary-of-study-results&mtn=f3371

         
 

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