Outsourcing Development & Life-Cycle Management
The challenge for Original Equipment Manufacturers (OEMs) is the need to continually develop and market innovative products in the shortest possible time.
For complex products, this requires a broad set of technical skills, which often span multiple disciplines. Often only a few of these technical competencies form the key to a distinctive position in the market: the core competencies.
The development and maintenance of non-core competencies in a competitive manner can be a significant and sometimes even risky undertaking. Outsourcing (part of) the development of an OEM’s product then provides a possible solution.
Such outsourcing does create a significant dependence. The way in which a product is developed is almost by definition unique, whereby changing supplier becomes riskier and more expensive than with other types of outsourcing.
Moreover, such outsourcing can have an impact on virtually all disciplines and departments within the OEM’s organization. All this makes the implementation of such an outsourcing complex. The result however can be very rewarding!