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Nearshore Outsourcing
Engineering Services
McKinsey’s take on Localshoring’

End of Oursourcing?

Big Drop in Employability of Engineering Graduates in India

Local shoring picks up momentum

Engineering Services: A Nearshore Approach

Engineering Services outsourcing is a relatively new service offering of Global IT companies looking to expand their service portfolio. Compared to IT outsourcing, engineering outsourcing offers different and new challenges to both the customer and the vendor. The principal opportunity for engineering outsourcing is accentuated by some of the unique changes impacting this market:

  1. The Shelf life of products is becoming shorter, accelerating the pace of innovation. (Need: Creating and sustaining a shorter innovation cycle.)
  2. There is a great demand for quicker new product introduction, with attendant price pressures on products. Innovation is the name of the game today. (Need: Faster innovation.)
  3. Cost of product introduction is going up year on year, with manufacturing process and marketing costs going up. Outsourcing has the potential for reducing ‘manageable costs’.

In response to such pressures, many U.S. companies have started the process of replicating the success in IT outsourcing, and are trying to offshore engineering services. This worked well for low level engineering work such as drawing conversion. However, at higher skill levels, complexity in outsourcing increases due to the same challenges listed above. With changes to the engineering practices (by increasing analysis upfront, reducing prototyping costs and bringing all the stakeholders quicker into the product development cycle), the challenges mount.

A Nearshore solution to Engineering services has the potential to overcome some of these challenges while taking advantage of the benefits that are available in the current market:

  1. Ensure price comparability with experienced, net effective offshore aggregate costs –the aim is to help customers control their costs, just as with offshoring
  2. Ensure process reliability in delivering an outsourced engineering service
  3. Ensure time to market issues are addressed on a daily basis
  4. Ensure seamless work integration with customer in-house teams
U2SI is pioneering the nearshore delivery of Engineering Services that leverage local talent available while retaining the benefits of reduced cost, reliability and maturity inherent in the current global sourcing models. Please look at the whitepaper on nearshoring for more details on how we can help you.


U2SI is started with the objective of providing US fortune 1000 companies engineering services in a cost effective manner by running the operations from low cost centers within US. In today's environment with shortening design cycles, increased product proliferations and ever tightening budgets, we see companies continuing to send product development projects to offshore locations where labor costs are cheaper. This is currently done by many organizations either by having captive offshore development center or by outsourcing the development to an offshore vendor. Whereas this approach clearly lowers the hourly development costs, the overall project development cost savings are not significantly down. The reasons are many and some of these are no domain expertise, high attrition rates, unreliable physical infrastructure, geographical time differences, and remote management overheads. Clearly Nearshore operations do not have many of these limitations and our teams operating from low cost areas can execute projects on time with no additional cost increases.

U2SI and our strategic partners have been serving the US Clients for many years. Our clients in Engineering services include recognized names in Consumer Products, Hi-Tech, Automotive and Manufacturing industries. Well funded along with a robust infrastructure and a mature organizational support, we are well positioned to quickly ramp up the organization to satisfy the unique needs of our clients quickly and effectively. Our clients can be serviced immediately from the existing centers in Ohio or we can extend our reach into the other low cost centers in consultation with our customers.

The management team of U2SI has over 100 years of total experience serving the global clients. This experience, in the areas of innovation, project and program management, technology development and global sourcing has contributed to substantial business benefits for the customers in the areas of competitive differentiation, speed to market and cost savings.

Management Team:

  • Ram Mynampati, Chief Executive Officer
  • Krishna Kumar Pillalamarri, President



March 14, 2018 - Webinar

Part and Tool Cost Estimation for Manufacturing Companies

Time: 10:30 A.M. PDT
Presenter: Krishna Pillalamarri, President, U2SI
Play Recording

Archived Webinars

Overview of Tool and Part Costing using Siemens TcPCM

Product Costing Solutions using Siemens Product Cost Management

Presenter: Krishna Pillalamarri, President, U2SI

Play Recording

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