When it comes to tech solutions development, any B2B or customer-oriented product goes a long way from the initial idea to its implementation. As soon as you have finished estimating business value, outlining core functionality, and drafting the product specs, you’re done with only the first stage of this complex and multi-faceted process.
As a business, you basically have 2 options to address your research and development (R&D) endeavour:
Build your own in-house R&D process, or outsource your R&D function to an external provider that has all it takes to future-proof your business idea and create a clickable prototype or a minimum value product (MVP) to attract further investments for full-fledged product development.
With the first option, brace yourself to embark on a long and restless journey. With the second, you can significantly save costs, access unparalleled expertise and validate your business idea feasibility without making a substantial investment.
Two general components of overhead costs are administrative costs and facilities costs.
The process of outsourcing R&D reduces cost and enhances performances in a given activity.
Not having to pay for a facility or the equipment used for punctual projects has proven to be a capital saviour for companies. In addition, they can spare money on wages and training for specific devices.
Take the example of water quality measurement needed at a specific time. What are the options? Buy a specific material, do the training video on The Internet and make the measure. This is a high-cost option. Another option would be to hire a company that would do it for you. Then, you get official accreditation, and there is no need for the investment of time and equipment.
To be short, there are three items you should consider when facing the dilemma of outsourcing vs. in-house investment: the cost of equipment, the cost of maintaining the equipment (consumable, periodic calibration, etc.), and the personnel cost. Don’t forget to estimate the personnel cost when you want to initiate a new activity vs. outsourcing a test, analysis or any kind of process. It comprises the time you will need to make the purchase, the time needed to train the team to the process/equipment, and the time of maintenance.
COREMATIC has invested in large and expensive leading edge equipment to help industries reduce the costs of innovation by avoiding any technology expenses to validate a concept. We will assist you to calculate your return on investment by offering a detailed budget for service along with our technical solutions.
When you outsource the tasks that are not part of your core expertise you are able to concentrate on the ones that are part of it. In short, outsource to keep your resource!
Choosing an outsourcing partner means creating a relationship between labs and/or companies. This can be very useful for building a consortium for example.
As you read through this, you probably grasp the main message about outsourcing your R&D needs: there are a lot of advantages, here we have only mentioned a couple.
Now, you might begin to understand that outsourcing your R&D and seeking partnership are two very close notions.
The bottom line is that the choice can be complex of how and with whom to outsource, but every business can leverage expertise, equipment or technology provided by the right partner.