Flexshoring

Introducing the Lumenance Flexshoring model. Think about the strength of a three-legged stool. Combining the best features of Nearshoring, Contingent engineers, and world-class Product Development Services, the Flexshoring model is the best choice when you need help with complex engineering design projects and tasks.

Nearshoring

Lumenance has offices in Wisconsin, Ohio, and Mexico to leverage NAFTA regulations in meeting your most strategic requirements across multiple industries. Look at the success major manufacturers have achieved by relocating production facilities to Mexico. Lumenance has years of experience in attracting, developing, and deploying engineering talent from Mexico.

Contingent Product Engineering

Our engineering experience produces the highest value outcomes in the marketplace. This is not just talk, we walk the walk. Every engineer in the organization has direct experience in contingent engineering support. Lumenance will work with you to develop a customized approach that will contribute to your team’s project efforts on day one. When you need more than a “body shop,” contact Lumenance.

Product Development Services

Project Management is just a subset of our total solution package that we call Product Development Services. Given our wide engineering experience, we are continually invited by our clients to contribute more to overall project success. Our commitment to APQP process standards is just one of our differentiators. Talk to us, and you’ll find that our founding partners are some of the best Engineering Solution Leads in the industry.

Start doing engineering the right way.

Nearshoring vs. Offshoring

In today’s business environment, it almost seems like a wildly improbable idea to outsource technical work halfway around the world. Yet, for some period of years a massive shift of transactional engineering work was transferred to India and China for cost savings. But more and more companies are rejecting that option and moving work back to the NAFTA zone. And it’s easy to understand their reasons. How can an efficient support system work when your outsourced team is sleeping while you are at your desk? Time and again we hear of stories about how frustrating it is for engineering managers to stay very late and arrive at work very early in a vain attempt to bridge the time zone challenge. And if you need to meet with your outsourcing provider, do you really want to travel across 12 time zones to Asia to make this happen? If you answered no to both these questions, it’s time to work with a Flexshoring partner.

Mexico is located in the Central Time Zone, making teamwork a breeze. If you need to visit our Mexican facilities, you will feel right at home in Queretaro, located in the heart of the Bajio region where large multi-national transportation manufacturers are focusing their operations. Think about the difference between a two-day trip to China vs. a quick hop to Mexico.

To those with no experience in working with providers in India, this may seem like a non-problem. But ask just about anyone with offshoring experience about communication problems with their outsourced team in Asia. Although there are many English-speaking engineers in India, the overwhelming anecdotal information suggests that language and culture is a huge barrier to successful project completion with Indian teams.

When you work with an offshore Indian company, it is common that only your project lead is comfortable communicating in English. At Lumenance, all of our engineers are proficient in English. We understand that efficient communication is essential for getting projects done right and for meeting deadlines.

Mexico and the U.S. have been neighbors for 300 years, and over this time the cross-border influences are extremely strong. When you set an expectation regarding time, quality, or process it is much more likely that your nearshore team will execute to your standards. Another point of consideration is the number of official public holidays. While in Mexico there are 7 legal holidays, the number in India is 30.

One of the biggest advantages to the Nearshoring model is the enhanced protection of Intellectual Property (IP). Contrasted with the almost total lack of a legal and practical framework for IP protection, your valuable data is secure within the Lumenance environment and the larger NAFTA-based region where we operate. Legal protections built into the NAFTA agreement are leveraged in the Lumenance system to give our clients the assurance they need to partner with us in new product development. We feature a lifecycle approach to IP protection that extends from the moment the client engagement begins until after all projects are complete.

For our clients in regulated industries such as Medical Devices, the nearshoring advantages are magnified by the unitary approach in NAFTA to ISO standards. For example, the ISO 13485 standard is accepted throughout the NAFTA region, unlike the situation in Asia. This means that your work product developed by our engineers in Mexico is viewed by regulators no differently than product development in the U.S.

It is no secret why engineering product development managers are scrambling to find talented and experienced professionals needed to keep up with demand. At the same time as our economy continues to focus on high-value processes that require technical expertise, the demographic trends of U.S. engineers continue to work against employers. Simply put, there isn’t enough design engineering talent to power Tier 1 suppliers and OEM needs. No wonder there was a push to look for engineering support in other countries.

With so much engineering work having been offshored to India, it’s no surprise that the talent pool has dramatically decreased. For one thing, many of the best and experienced engineers have relocated to other countries, including the U.S. And the Indian educational system has not kept pace with the demand. It is estimated that only 15% of recent college-level graduates from India have the skills required for successful employment in the technology-based areas.

Let’s contrast this to the situation in Mexico. In response to the global demand for engineers and the booming manufacturing base, Mexico has dramatically increased the number and quality of engineering graduates. In the U.S., Mexico’s rate of engineering graduates per capita is double that of the United States . With the recent investments made in technology education—especially engineering—Mexico is quickly becoming a leader in developing the engineering talent needed for the future.

Cost was the primary driver of the growth of offshoring in India and the rest of Asia. But this advantage is fast disappearing. As Total Cost of Ownership becomes clearer to U.S. companies, the rate of growth of the major offshoring providers continues to slow dramatically. Productivity was never a major strength of Indian outsourced engineering teams. Longer product design cycle times create downstream problems in manufacturing and raise system costs. The communication issues described above add additional costs to the equation. One major U.S. buyer of technology recently stated that, “We factor an additional 30% into our costs to India for travel and other soft costs. Going to Mexico works out cheaper.”

In contrast with Mexico, wage rates are skyrocketing in Asia for engineering talent. Good product developers in India and China are few and far between, so pay for such jobs has been rising by up to 30% a year. Finally, turnover rates in Asia are very high. Even by 2010, project attrition rates reached 55%. The Lumenance experience is completely different. With the highly qualified Mexican engineers placed in the U.S. by Lumenance, our clients have seen only 5% regretted turnover since we were founded.

Questions on nearshoring?

Process and project expertise to achieve your time to market goals.

Contingent Engineering with a responsive and efficient system, designed and managed by engineers.

Start doing engineering the right way.

Enter your keyword