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November 29, 2006

Outsourcing Re-engineering Services: Rewards & Dangers

--By Priya Jestin, Staff Writer

When a firm outsources its re-engineering services, it can do away with the necessity of having to provide large infrastructures with the requisite machinery. Not only is this method more practical, it is also very cost-effective. This way, the firm can concentrate on its core activities. And now that the market is expanding, there is a growing business segment that offers re-engineering services.

While all this sounds very good, there’s one worrying aspect. Does the outsourcing argument allow for quality management in re-engineering services? One of the biggest problems a firm may face is of ensuring that the final quality is as good. Also, the work should be in line with original-equipment manufacturer specifications. These are important factors that influence the operational reliability of plant and equipment.

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