Roughly speaking an Italian company or organisation may approach offshore outsourcing for engineering services in India upon four different perspectives: >> execution of standardised activities >> development of detailed projects >> codesign >> "toe in the water" for the Indian market. Each approach is different with regard to supplier characteristics, contract structure, management approach, and support tools.
	Execution of standardised activities The execution of standardised activities is for instance the migration of drawings from paper to CAD, or from 2D to 3D. It also belongs to this class the preparation of electronic catalogues and manuals. These activities call for a supplier with know-how on tools (the CAD system) and standards (public standards or internal ones). The contract is easily set-up, and its results are easily monitored.   Development of detailed projects In the development of detailed projects the supplier is given a preliminary project which he must then work out in its details (such as an assembly whose components must be identified and defined), or an already detailed project for which certain aspects are to be supplemented (for instance structural engineering for an otherwise-completely-defined plant). In such relationships the supplier is required, besides tools and standards, also "sector" know-how on problems and techniques. The contract is still one of pure service delivery, but there may be complications in measuring results.   Codesign In codesign the supplier is involved since the project’s early phases and has large visibility on the project itself. In this kind of contract the supplier enters the scene in two moments, to develop the preliminary project, and to develop the detailed project. The preliminary project is developed upon customer’s specifications and is used (by the customer) for instance to bid for a contract, or for the internal analysis of an investment. The detailed project is developed later, and only if for instance the customer has won the contract. In these relationships the supplier has a fairly complete knowledge on product, technology, and customer practices, and the outsourcing relationship is usually framed in risk-and-revenue-sharing schemes.   "Toe in the water" for the Indian market "Toe in the water" is an option available to companies that aim as a medium-term strategy at establishing a manufacturing presence in India for servicing the Indian market. The Indian and Chinese markets are often put on pair: China has several advantages (more advanced liberalisation, better infrastructure), India has others (more solid legal structure, use of English). However, many companies that keenly look at India as a possible market still deem a direct investment premature. A "provisional" approach to the decision is to identify an Indian partner who for the time being supplies engineering services to the production lines which may eventually be moved to India (and in the process acquires –and provides- "basic" know-how), and who later may become the starting point for a joint venture.   Additional information on the activities described are available at www.terzoturno.it
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