For outsourcing to succeed, the customer must achieve gains in the three fundamental key areas. Cost, Quality and Timing. The true value of an outsourcing partner can only be derived from the common denominator of these three areas, not one particular area. We refer to this common denominator as the Efficiency Index (EI). Based on benchmarks of our own and extensive business cases and experiences from our customer base, here is how IDEA Group compares in each key area.
Through benchmarks of our own and extensive experiences from our customer base, IDEA Group rates are approximately 10-15% more costly than comparable offshore rates and 25-50% less costly than domestic firms.
Quality and Timing:
Due to marketplace demands and reductions in product life cycle development time, these two areas are inter-related and have a drastic affect on the EI (Efficiency Index). IDEA Group has a long standing record of being the Industry leader in providing unmatched quality and meeting and exceeding the customer’s timing needs. Our record of excellence is a result of highly extensive work processes such as parametric CAD designs that allow for quick refinements and rework and our stringent quality control work flow procedure, which results in heralded performance and consistency. Through our benchmarks, we found that while quality was a difficult topic to evaluate due to each customer’s perception, timing was tangible. In almost all benchmark cases, offshore firms were nearly 45-75% less efficient than IDEA Group in the area of timing. Domestic firms were 15-35% less efficient than IDEA Group.
EI (Efficiency Index):
To measure the success of outsourcing, the bottom line is not dictated by the hourly rate but a more true measure such as the EI. IDEA Group’s EI offers approximately 45% greater efficiency compared to offshore firms and approximately 60% greater efficiency than domestic firms.
If you are considering outsourcing for the first time or simply interested in higher efficiency from your CAD services partner, we would like the opportunity to discuss this area in greater depth. Please contact us to schedule a presentation.