A guide for computer aided design students who seek to establish a successful business serving those companies who wish to outsource or contract out CAD and design work

Abstract

In the global economy, companies need to continuously reduce costs, and develop new products and services to stay competitive. Corporations can reduce costs in many different ways such as improving employee productivity, reducing employee pay, reducing building maintenance, consolidating operations, and outsourcing operations. Firms outsource to keep the business competitive and reduce costs. Frito Lay is outsourcing computer programming to a Russian firm, Luxoft. The low cost Russian computer programming that Luxoft provides is so popular, the company is growing revenue at 40% a year. Reducing costs is not the only reason to outsource. A company might not be able to find the talent it needs in house. Many companies have found it easier and more cost effective to outsource the development of the company’s website, rather than hire a full time web designer. Several of Wisconsin’s Technical colleges offer two-year computer aided design (CAD) degrees. Graduates of the CAD programs typically operate computer aided design software at manufacturing, design, and architectural firms. A designer’s work is computer intensive and much of the workday is spent alone at a computer station. Given the nature of the work, companies may find it convenient to outsource CAD and design work rather than hire staff. The purpose of this study was to research and review the literature on outsourcing and contracting to provide a guide for CAD students who seek to set up a successful business serving those companies who wish to outsource CAD and design work. The study was conducted through a comprehensive review and critical analysis of research and literature focused upon the research questions of the study.