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Three reasons to outsource:

  1. Save money...

One of the biggest challenges in managing an engineering department is maintaining appropriate staffing levels. Is it better to staff for normal periods of activity and find yourself understaffed during periods of peak activity or is it better to staff for periods of peak activity and find yourself overstaffed during periods of normal activity? In the first scenario, there will likely be times when you find yourself unable to complete all projects in a timely manner. In the second scenario, you will certainly be wasting some of your engineering budget. One way to address this dilemma is to staff for normal periods of activity and outsource select projects during periods of peak activity.

  1. Inability to find, hire, and keep enough good people...

Another major challenge in managing an engineering department is finding, hiring, and keeping enough qualified employees. Individuals with the types of skills we offer at BadgerWare are in high demand and in limited supply. It has been our experience that even if you wanted to staff for periods of peak activity, unless you were to compromise on the quality, it would be very difficult to accomplish. In fact, in many cases, it is difficult to staff even for periods of normal activity.

  1. Save money...

We have found that most people find it easier to justify outsourcing small-scale projects than it is to justify outsourcing large-scale development projects. They argue that outsourcing is too expensive. Obviously, we disagree. When comparing the cost of outsourcing to the cost of a full-time employee, be careful to not make an "apples to oranges" comparison. Certainly the cost per hour for a contract engineer is going to be higher than the isolated cost per hour of a salaried employee. However, don't forget to include the upfront cost of hiring the employee (advertising, agency or referral fees, interviewing time and expense, training time and expense, etc.) and the actual cost of employment (computer and other equipment, payroll taxes, benefits, etc.).


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