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You would not be living in furnished homes or using smart devices if not for the architecture and engineering sectors. Architects and engineers are critical in designing and building various projects to ease daily life.
However, these professionals experience burnout if they must complete non-core tasks on top of their primary responsibilities. These processes divert their attention, lowering the quality of their work.
Business process outsourcing (BPO) is a cost-effective solution addressing these challenges in architecture and engineering. Service vendors provide access to specialized expertise and advanced technology at competitive prices.
Continue reading this article to find out more.
BPO’s Role in Architecture and Engineering
Entrusting repetitive, non-core tasks to third-party companies answers the question, “What is BPO?” Contractors take over these functions to let architecture and engineering businesses prioritize their primary initiatives and competencies.
BPO Opportunities for Architecture Firms
Grand View Research said the global architectural services market was valued at $359.98 billion in 2022. The organization expects the sector to expand at a compound annual growth rate (CAGR) of nearly 5% by 2030.
These figures show that many businesses and individuals constantly seek architectural services. Hence, architectural companies encounter increased workloads and backlogs. To help ease potential gaps, they hire third-party companies to do the following tasks:
- Computer-aided design (CAD) and drafting services
- 3D modeling and visualization
- Renderings and animation
- Documentation and detailing
- Code and regulatory compliance support
- Project management assistance
- Quantity take-offs and estimations
- Sustainability consulting
- Materials procurement
- Data management
- Document control and repository maintenance
- Geographic information system (GIS) support
- Building information modeling (BIM)
- Market research and analysis
- Front- and back-office support
- Legal and contract support
- Training and skill development
BPO Opportunities for Engineering Companies
Apart from outsourcing architectural services, BPO opportunities also await engineering companies. Service vendors provide cost efficiency by taking over time-consuming processes. Because of that, clients continue to use outsourcing to support their engineering projects.
Thus, the global engineering services market was valued at $1.4 trillion in 2022. The sector will grow to $6.8 trillion by 2031 as the demand for engineering and design support increases.
Here is a list of engineering services commonly outsourced.
- Finite element analysis (FEA) and computational fluid dynamics (CFD) simulation
- Traditional and rapid prototyping
- Product documentation
- Simulation and virtual testing
- Reverse engineering
- Value engineering
- Supply chain management
- Quality control and inspection
- Security and regulatory compliance
- Project management support
- Data analysis and interpretation
- Tool design and development
- Product testing and certification
- Environmental impact assessment
- Process automation and optimization
- Information technology (IT) and software development
- Skill development and training support
- Innovation research
Advantages of Outsourcing Architecture and Engineering Tasks
Enterprises will not outsource architecture and engineering tasks if they do not receive any positive outcomes from this practice. They employ service providers due to various benefits that boost their businesses. Let us discuss the key BPO advantages below.
- Reduce labor costs. Third-party companies provide skilled engineers and architects at lower labor fees. They charge services hourly or yearly, depending on the project’s length and scope. Clients also experience reduced costs on recruitment, training, and compensation packages; they only need to focus on paying an employee fee.
- Provide access to a skilled workforce. Contractors employ professionals specializing in architecture, engineering, and related non-core functions. These experts keep themselves updated on the latest trends and tech advancements. Additionally, they regularly train to address diverse projects for short- or long-term periods.
- Increase scalability. BPO assists in scaling up or down architecture and engineering projects. For instance, you need an urgent design for your company’s new office space within two weeks; it will be part of your upcoming budget plan. You can hire a third-party architect without needing permanent staffing adjustments and training.
- Deliver modern technologies and solutions. Contractors optimize cutting-edge hardware and software systems to complete duplicate processes faster and more effectively. These tools include artificial intelligence (AI), automation, and cloud computing.
- Enable quicker project turnaround. Service providers specialize in non-core business processes. They implement practical approaches and innovative solutions to expedite project timelines. This way, you can deliver your products and services to the market within your set time frame.
- Expand global market knowledge. Third-party teams provide fresh worldwide perspectives surrounding the architecture and engineering sectors. They keep up with the ever-changing international design standards, industry regulations, and best practices.
- Facilitate risk mitigation. BPO companies assist in addressing the risk of architecture and engineering-related errors and cyber threats. They help develop mitigation plans, ensuring compliance with industry standards and regulations.
- Support cost predictability. BPO deals include clear pricing structures. Contractors charge for their services with fixed hourly or monthly fees. This strategy lets you forecast and manage your budget well for non-core tasks without compromising your primary resources.
- Cut overhead expenses. Hiring a service provider lets you eliminate the costs of additional office space, equipment, and utility bills.
- Prioritize innovation efforts. Assigning routine tasks to contractors enables your in-house team to focus on your primary architecture and engineering initiatives. The practice allows you to allocate more time and resources to research and develop new design concepts.
Ways to Guarantee Blueprint Success With BPO
While BPO brings numerous benefits, you need careful consideration and planning when selecting the right service provider. You must maintain a balance between outsourced and in-house functions. These best practices help you achieve success with a BPO partner.
- Specify project scope, goals, and requirements.
- Research the market to identify possible service charges and BPO options.
- Pick a BPO contractor with solid credibility in architecture and engineering services.
- Evaluate the provider’s expertise, portfolio, history, and client references.
- Negotiate contract terms and conditions thoroughly before signing.
- Consider cultural and time zone differences when organizing work schedules.
- Develop well-defined workflows to guide the third-party team’s work.
- Prepare handbooks for brand and project familiarity.
- Establish a point of contact.
- Ensure real-time communication and regular check-ins.
- Implement quality control and review mechanisms for deliverables.
- Set up joint data security and confidentiality measures.
- Draft and sign non-disclosure agreements (NDAs) to ensure information security.
- Perform regular progress tracking based on timelines and performance indicators (KPIs).
- Accept third-party feedback for project improvements.
- Learn to adapt to changes based on collaborative dynamics and project requirements.
- Foster an inclusive work culture for both outsourced and in-house teams.
- Regularly assess the BPO partner’s work performance and outcomes.
- Develop a shared contingency plan to address unexpected issues and risks.
Challenges to Avoid When Outsourcing
Even if advantages exist, challenges may linger when outsourcing some of your architecture and engineering tasks. As you take the steps detailed above, consider the potential issues listed below. Understanding them helps you build a well-structured BPO plan and ensure a successful outsourcing partnership.
- Unclear project requirements and goals. Such ambiguities lead to delays, errors, and high rework costs. This issue also wastes funds because your service provider cannot meet your desired output.
- Poor communication. Failing to establish a stable and centralized communication channel results in misunderstandings and misinterpretations.
- Weak business security. Research shows that 82% of organizations experience cyberattacks through computers, servers, and networks. Engaging with BPO companies involves remote transactions, exposing your systems and data to various online threats.
- Limited quality control. BPO providers have different takes on managing specific architecture and engineering services. Misaligned work strategies and solutions cause low-quality outcomes.
- Cultural and linguistic differences. Outsourcing to offshore countries, such as the Philippines and India, introduces barriers to culture and communication. Mismatched work cultures and languages lead to misunderstandings and conflicts of interest.
- Legal and contractual issues. Unclear regulatory and service terms end in costly disputes, lawsuits, and violation fees. Project requirements, intellectual property rights, and budget allocations are also compromised.
- Overreliance on a single provider. Too much reliance on a BPO contractor leads to vulnerabilities and downtime if it faces issues. Meanwhile, diversifying outsourcing partnerships may result in increased operating expenses.
- Inefficient project management. The lack of a contact point negatively impacts the overall process. The absence of a project manager results in missed deadlines, disorganized tasks, and delays.
- Inadequate due diligence: Choosing a BPO company without proper background checks equals inconsistencies and inefficiencies. Failure to perform appropriate due diligence results in working with an unreliable provider.
- Unrealistic cost expectations: Cost cutting is among the primary motivations for acquiring BPO in support of your architecture and engineering business. However, the over-prioritization of cost reduction compromises output quality.
- Short-term objectives. Although the period depends on your current needs, focusing solely on short-term cost savings is problematic. It overshadows the potential impact on your company’s growth and competencies.
The Bottom Line
Architecture and engineering involve intricate and sophisticated processes to produce innovative infrastructures, devices, and facilities. Due to the sector’s increasing demand, companies encounter piling-up workloads. Luckily, various BPO opportunities are available for them to take advantage of.
Note that outsourcing comes with benefits and drawbacks. You cannot fully enjoy the advantages of BPO if you do not address the associated challenges beforehand. So, you must carefully plan your move when investing in a third-party team. The above practices help ensure cost-effective investment returns and high-quality outcomes.
Let’s connect if you want to learn more about how a BPO contractor can support your architecture and engineering business. Unity Communications employs professionals trained to meet your front- and back-office needs. The award-winning contractor also deploys advanced technologies to complement your business strengths and capabilities.
