1. It’s Cost Effective
Many potential clients discard the possibility of outsourcing some of their product development because they expect it to be too expensive. However, after considering the following items, they realize that outsourcing some or all of the product development to Impulse is a very cost-effective solution:
- Employee costs: hiring fees, salary, taxes, benefits, legal, etc..
- Overhead expenditures on office space, computers, software, training, etc…
- Administrative costs: IT support, management support, human resources, payroll, etc…
- Risk costs: downsizing, severance pay, legal support, etc…
Common Product Development Problems: We Could Bring More Products to Market If We Had More Design and Engineering Resources
Wouldn’t it be great to have the ability to develop every product idea that your company comes up with? Unfortunately, that’s not the typical case. More often than not, companies come up with more good ideas than they’re able to develop. They don’t have enough internal resources to develop every good idea, so they’re forced to prioritize or more likely eliminate good, money-making ideas.
The lack of internal resources could be manpower resources or money resources. There’s no doubt that it’s expensive to develop a new product, and if a lack of sufficient funding is keeping your company from developing more products, then it’s obvious that product ideas will need to be prioritized and eliminated. However, if the reason your company doesn’t develop more products is due to a lack of manpower, that’s a situation that, in the end, is actually costing the company revenue.
Many of our clients struggle with capacity issues, whether it’s finding the balance between number of projects and number of engineers/designers or it’s the aftermath of company restructuring. In any case, you don’t want to end up with too many projects and not enough people or too many people and not enough projects.
We recently completed a project with a division of a Fortune 500 company that had gone through a major restructuring. Large numbers of people were let go, and many that stayed were shuffled to other product lines. Only a fraction of the designers/engineers were left. Yet the list of products to be developed, some of which were right in the middle of the development phase, did not change. Adding to the struggle was a hiring freeze.
Do you struggle to meet timelines? Do you get frustrated when you have to send what you would consider incomplete data to a toolmaker/manufacturer? Is the process of creating CAD data the bottleneck in your product development process? Many of our clients come to us because they’ve struggled with those problems with their internal design and engineering departments or because their existing design/engineering vendor didn’t deliver.
One of the most challenging industries for product development is the medical industry, because the medical industry is extremely large. While this may seem like a positive thing, the sheer size of the industry and the bureaucracy that comes with something that size make it difficult to work in. Just because something is difficult doesn’t mean it’s not worth it. Medical product development is extremely important, and that is one of the reason Impulse continues to accept the challenge.
Companies that develop products are sometimes hesitant to outsource parts of their product development. However, here are 10 things to consider when you’re thinking about outsourcing your product development.
- It’s Cost-Effective
Many potential clients discard the possibility of outsourcing some of their product development because they believe it will be too expensive. However, after considering the following items, they realize that outsourcing some or all of the product development to Impulse is a very cost-effective solution:
Some companies recognize the need to continually update, evaluate, and challenge their existing product line. And because of that, they have a process in place for generating new product ideas—not just ideas, but valid, marketable, profitable ideas that result in a continual evolution of their product line.
Unfortunately, there are also companies that don’t recognize this need. They don’t realize that the reason they’re struggling has a lot to do with the absence of a process for generating ideas for new products.
Our best ideas often strike at the oddest moments: walking in the parking lot from the store to
your car, going on a jog, in the shower, or shooting the breeze with friends over drinks in a bar.
During those aha moments, you normally don’t have a notebook or graph paper handy. But you
have the backs of receipts, your palm, and napkins. But once you decide to pursue your idea for a product design, what do you do?
Your idea for a new product design has the entire company excited. Like most companies, your biggest challenge in developing a new product may be prioritizing the project and the resources available to work on it. You and the entire team are already at capacity developing multiple products. Add to that, your sales and marketing group want the new product ready now.
The question is, how can you get the product designed and developed within the tight time-line? Everyone on your team is already swamped and working long hours. You need more people on the team, but you know hiring a new employee will take too long. Should you consider outsourcing the product design?