Outsourcing And Off-Shoring: Options For The US Construction Industry

Abstract

The construction industry relies on the skills of structural engineers for all projects. There exists a large volume of design and detailing work for structural engineering in the United States (US) and there are insufficient numbers of qualified designers in the US to do the work. Recent changes in the telecommunications sector make off-shoring structural design work to developing countries like India and China a realistic possibility. Economics of outsourcing is a key reason for this possibility to be realized. It is logical to consider the effects of outsourcing in the design sector and its effects on the construction industry. The manuscript will present the authors finding based on detailed case-study model research with two companies that are outsourcing work to India from the US. The author conducted detailed interviews with principals in US structural design firms and then traveled to Bangalore, India to interview their Indian counterparts. Results from these interviews are presented. The author will present an empirical model for outsourcing construction activities. Processes in the construction industry that are most suited for outsourcing and off-shoring are presented. Issues surrounding outsourcing such as training, economics and logistics are discussed.