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The construction and engineering sector faces challenges due to global economic and political changes. Despite these complexities, Deloitte’s 2019 Engineering and Construction Industry Outlook indicates a bright future for the industry.
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Are you considering outsourcing construction or engineering services for your company? Before making any decisions, it's essential to know the benefits and potential drawbacks.
The construction and engineering sector faces challenges due to global economic and political changes. Despite these complexities, Deloitte's 2019 Engineering and Construction Industry Outlook indicates a bright future for the industry.
However, meeting the demand for high-quality services delivered on time has become a challenge. The industry struggles to recruit and retain qualified staff in large enough numbers. In fact, Deloitte states that "labor shortages are reaching crisis proportions," and resourcing is a significant obstacle to the industry's growth.
Innovation is essential for engineering and construction firms to remain competitive and profitable, especially for large projects. However, without it, productivity decreases, and there is a missed opportunity to be more competitive in an industry that is slow to adopt new technology. As sustainability becomes more critical in the industry, there is an even greater emphasis on the technology required to meet these challenges.
Moreover, the cost of raw materials continues to rise, making it increasingly difficult to maintain acceptable profit margins.
The most practical solution for most construction and engineering companies to increase capacity while keeping costs manageable is outsourcing. But how does outsourcing work? Watch this video to learn more about outsourcing in construction and engineering.
The construction and engineering industry is complex and multifaceted, often requiring subcontracting to smaller entities to manage the various components of a project. Offshoring these services can provide several advantages, including increased efficiencies in certain areas, allowing for more strategic resource allocation and the ability to expand. Outsourcing can also enable companies to bid for larger jobs and remain competitive in a constantly changing industry.
Offshoring engineering services in the construction industry has been a common practice for many years, both in the EPC (engineering, procurement, and construction) and AEC (architectural, engineering, and construction) sectors. These practices have been successful in creating cost savings and increasing productivity while ensuring work standards and national and corporate security are maintained.
Several roles in engineering and construction are frequently outsourced, including quantity surveyors, site estimators, electrical, civil, mechanical, and structural engineers, project managers, architects, and CAD operators. Offshoring these roles to trusted professionals familiar with industry requirements can help to reduce costs, increase productivity and efficiency, and enable companies to take on larger projects.
It is essential to ensure that outsourced work meets the same high standards and security protocols required for any project. Working with trusted and reputable professionals who understand the unique demands of the construction and engineering industry is critical to achieving success through outsourcing.