Small Business Sourcing of Offshore Engineering 1

[funnelguy]

What are some of the experiences of forum members? At least one of my customers (less than 200 employees) is outsourcing CAD work to India. How would a small manufacturing company identify qualified sources and how are payments and disputes handled?

Caveat emptor?

 

[arunmrao]

funnelguy, I shall give my experience as I export castings from India to US and Canada .Payment will not be an issue and you need not worry ,the Indian will provide enough alternatives to receive his payment and ensure he gets it(I was joking). Mode of payment is simple either wire transfer or LC. If you pay advances you can ask for a bank guarantee(normally not insisted).

You can be very elaborate on your technical delivery condition which stipulates the scope and content of work,also progress in work report can be asked for. Third party inspection is insisted quite often. In case of dispute simple don't pay,or appoint an arbitrator at the cost of Indian vendor. But this is a painful process and hope such issues do not arise. A mature vendor will always ensure that the customer does not suffer and also accept his mistakes gracefully.

I hope you will not have much problem working with an Indian company. If you need any assistance any time please free to ask me.(No service charges or preconditions )

 

[funnelguy]

Thanks for the reply, arunmrao. I would anticipate that dealing with Indian companies would be simpler from the standpoint of language barriers.

Non-payment is probably the most often used method of dealing with vendors who do not perform. Even good companies occaisionally have problems. Lawyers and arbiters are almost never involved in any business dealings at my level. There is not enough money involved to make it worthwhile.

Here in the states, there are many registers and publications to get the initial contact. Prospective vendors are then evaluated and quotations solicited. How or where would I get information about prospective vendors in India?

 

[arunmrao]

Please let me know what services you need and I could do the searcgh for you. There is the Engineering Exports Promotion Council(EEPC)which could also be of some use. Alternately there are a number of trade sites where you can put up your notice free of cost.

 

[flamby]

funnelguy,

I am an Indian too and know a few guys working on Solidworks, MicroStation, AutoCAD, Catia etc. and can give you the contacts. What kind of CAD work you are referring to?

Generally, small contracts are run on goodwill rather than on legal framework. The vendors have to perform well to keep their contacts. However for big ones, you have to come, see and sign.

Regards.

 

[funnelguy]

I think primarily I might be interested in sourcing some FEA and possibly looking into a little CFD in the future. Pure CAD, if any, would be Solidworks. Small, simple jobs for the FEA. The CFD would be for future product development and I believe would be pretty industry specific.

 

[PBroad]

One point to remember is that the PE of the receiving plant is the one who stamps the drawings and is personally liable if the drawing (or component) is not up to code in the jurisdiction where you work. Codes vary so widely from one state to another that getting work done overseas can very easily contain oversights. You may get the drafting done at half price but the engineer will need to spend twice as much time checking for regulatory oversights. Not to say that the drawing quality is suspect just what is legal may change.

 

[flamby]

Small jobs like shop drawings and rebar detailing etc. are typically outsourced to small groups of CAD people operating. Naturally, the responsibility of the work lies with that recieving the work at US end.

For more responsible kind of work, you can contact Bechtel, Fluor Daniel, Siemens etc. who have full fledged offices in India to get economic work to expected standards, utilising good technical talent.

 

[EngineerDave]

Interesting. I may be in a similar position myself shortly.