When US companies set out to become more competitive, they inevitably come to the question of outsourcing. And of course, one of the first things to outsource is manufacturing. There are numerous reasons why successful companies nearshore manufacturing to Mexico and other foreign destinations.
But that’s not the only part of the value chain that should sometimes be outsourced.
Product design is vitally important, even though it can be quite difficult to outsource this critical stage. But companies can’t always afford to keep each phase in house. There’s a balance to be struck. And sometimes the best way to remain competitive is to understand the strategic importance of outsourcing product design.
Questions to Ask Before You Outsource Product Design
Product design – sometimes called industrial product design or IPD – is an incredibly important phase of the manufacturing process. In fact, this is the most crucial phase of bringing a product to market. It’s when you determine how to meet a market demand in a cost-efficient and attractive way. It’s when you envision every aspect of the product, both inside and outside, creating something new that will create a lasting impression on the customer and a profitable revenue stream for your company.
But it can be difficult to decide how to approach this phase. One way to home in on the right answers is to ask the right questions. Examine whether or not your company’s situation is equal to the task. For example, what about your engineering staff? If their expertise is limited to only a few core industries, you might benefit from the expansion of outsourcing.
How about internal resources? Are they becoming more limited? Then it’s possibly a smart move to outsource product design. Likewise, if development budgets are typically over budget, this is a good indicator that outsourcing this phase will positively impact your operation.
Another good question to help you determine which route to go is, can you keep up with competitors in this market? If your new product is in a space already dominated by someone else, this might mean you need some outside help – specialists can bring more to the table than your already limited internal resources. And chances are, they will create more cost-effective manufacturing processes than your own R&D team.
Top Reasons to Outsource Product Design
Obviously, if you answered in the affirmative to any of the questions discussed previously, it’s time to consider the many advantages of product design outsourcing. But to better understand why this is, let’s discuss some of the many reasons outsourcing this phase makes sense.
One of the most compelling advantages lies in the simple cost savings. By outsourcing, companies sidestep the hefty expenses tied to maintaining an in-house design team, such as salaries, benefits, and the ongoing investment in state-of-the-art tools and training. Instead, they can tap into specialized expertise on a project-by-project basis, converting fixed costs into variable ones. And this model not only cuts overhead but also grants access to global talent pools brimming with experience across industries.
But that’s not the only reason to outsource product design. There is also the critical advantage of tapping into the external perspective brought by outsourced design firms. In-house teams, no matter how skilled, can sometimes fall into predictable patterns or become overly focused on specific niches.
Outsourced designers, on the other hand, approach projects with fresh eyes, integrating insights from various disciplines and industries. This multidisciplinary input is what can lead some companies to discover innovative solutions that resonate more effectively with diverse markets. And what’s more, these teams are also often attuned to global trends, which enables businesses to design products that appeal to international audiences and stand out in competitive markets.
Speed and scalability further solidify the case for outsourcing. External teams, dedicated solely to design, can fast-track development timelines, helping businesses bring products to market faster. This agility is especially valuable in dynamic markets where timing can make or break a product’s success.
Last, but not least, outsourcing the product design phase allows for unmatched flexibility. Companies can scale their design capabilities up or down as needed without the logistical headaches of hiring or downsizing staff.
And these benefits, when coupled with an honest examination of your company’s in-house abilities, often leads to the conclusion that outsourcing product design will bring clear benefits for most companies. And these advantages are only compounded when US companies outsource to a favorable location like Mexico, where skilled teams are highly trained and highly affordable.
Whether it’s a startup seeking a competitive edge or an established company aiming to innovate, outsourcing product design typically provides a strategic pathway to efficiency, creativity, and market relevance.