The benefits of outsourcing new product development are very clear for start-ups, or small businesses without the facilities or personnel to carry a new product from conception to the market. But what about bigger companies that have grown over the years and now include their own specialists or even manufacturing facilities? Why would they ever go to someone else when they have a new product? As it turns out, outsourcing can be beneficial for anyone, no matter how big or small.
Even More Special
One of the great things about companies, whatever the size, is that they’re all unique. Even when they exist in the same field, offering to a similar clientele, there is something about a successful business that makes it successful. In fact, that unique quality, whatever it may be, is the key to its success. Over time, a business can start to lose sight of that unique quality, thereby losing its edge. Outsourcing is a great way to get fresh eyes on a project, whether starting right at the very beginning, or when creating prototypes, or when finally ready to put together a finished product.
Any major product, and even some of the minor ones, require more than one kind of specialist. A software engineer’s job is very different from an electrical engineer. Each job requires a different way of thinking. No matter how talented your teams may be, a different perspective is often just the thing needed to kick things up a notch. When creating a new product, you may well find there are aspects involved that your company has never encountered before — outsourcing it to an expert product development firm can fill in those gaps in your knowledge, and allow you to create the best possible product you can.
Success is great, but sometimes it can be its own problem. If you’re churning out large amounts of your usual product, then come up with the idea for a new product, you may not have the capacity to fill all the orders you’ll be getting. You could expand your facilities and hire more people, but that’s not always possible, or that may just take too long. Outsourcing aspects of your product development allows you to keep running your company at capacity even as you pursue something new, without having to expand your business.
A new product requires an extra surge of activity. Many times, a company will hire new staff and specialists, only to let them go when the item is finally in production. Outsourcing makes this unnecessary. No more taking chances with temporary workers, or hiring people only to fire them months later. You can get just what you need, at the time you need it — no more, no less.
How many times has a company assigned a timeline for a project, outlining all the steps from start to finish, only to see it miss deadline after deadline? It’s happened to virtually anyone who’s ever engaged in product development on any level, no matter what the product. A large company generally has a large daily task already to serve existing costumers and manufacture existing products. Often, a new product means assigning people new tasks, aside from the ones they already have. No wonder timelines fall apart so often.
When a company outsources new product development, the outsource firm takes on the responsibility of adhering to project deadlines. Because it’s their business to do so, the firm works closely with its client to ensure every aspect of the work is done to specification. Their focus allows them to complete each stage in a timely manner and allows your people to continue their own work without being sidetracked by something new.
The Bottom Line
Every business wants more business. One of the reasons for starting a company is to serve a growing clientele. But budgets can be tight, even in a big company, and new product development costs money. It’s possible to keep it in house, but this usually involves many hours of expensive and exhausting overtime for your staff, causing both productivity and profits to suffer in the duration, until the project is finished.
Outsourcing product development lets you hire, in essence, extra hands that can be paid at a regular price (often for less than your usual staff is paid) without paying for overtime. Your staff remains focused on their usual duties, keeping your established product line running. Plus, they don’t have to work late hours to focus on the new product, allowing your company to maintain its level of service to your existing customers.
Outsourcing Is Good For Everyone
The above reasons are just the beginning. From more secure intellectual property rights, to getting a leg up on the competition, outsourcing product development has a great many advantages that serve companies of all sizes. An experienced firm like Pivot International can increase your productivity and enhance your brand, making small companies into large companies and making the large companies even larger. Request your free consultation today.