STRATEGIC OUTSOURCING OF ENGINEERING AND TECHNICAL DOCUMENTATION TO INDIA: AN EXPERIENCE FROM A COMPANY LEADER IN THE RAILWAY SECTOR

Scope of this paper is to report an applied research for transferring different key European Projects related to Vehicle Engineering and Technical Documentation to a major Indian Outsourcing Company performing engineering activities. This research was conducted by a Multinational Company, leader in the railway sector, for economical reasons and considering the labor cost as the primary driver. Hourly rate negotiated with India Outsourcing Company is about ratio one to seven compared to the European average. Aim of this research was the analysis of the phases that led to the decision to outsource, including an extended analysis of the potential risks identified and the related mitigation actions proposed. The proposed approach required, to one of the Authors, more journeys to India to visit the Supplier at all levels from the top and middle management, to each engineer department, including a deep audit of all the working processes and the technologies used. Key factor for success was a Project of Integration between the two Companies in order to harmonize the European processes and systems across the different countries with the Indian ones, to develop clear tools, protocols and rules for a clear communication and making people collaboration effective. Due to the results of this research the Internal Engineering Department of the Multinational Company was strongly resized, in a three years period, by releasing up to several European engineers per country. This provided the Company with exceptional yearly savings to reach the competitiveness needed on the market, and allowed to a selected pool of European engineers to lead India Outsourcer effectively, while focusing on the core Engineering business. The paper reports quantitative results only for Technical Documentation project due to not disclosure agreement clauses.