OFFSHORING OF ENGINEERING SERVICES: A CASE STUDY FROM THE AUTOMOTIVE INDUSTRY
Offshoring of engineering services in the automotive industry is progressively increasing with organisations taking advantage of low cost regions and highly educated workforce.
This paper presents a case study of a large automotive multinational that offshored the body engineering activity of a complete vehicle design for cost advantages. The findings showed that when offshoring complex engineering services this caused complexities and challenges to both organisations. The case company decided to pull back the engineering services and outsource to an engineering service provider based locally.