CAD Designers: Are Your Jobs Still Going Overseas?

Businesses in Beijing and Bangalore believe they have discovered a gold mine. But the same experience for many of their foreign investors has exposed land mines in return. Aside from the obvious local employment concerns, companies often discover outsourcing to be far more expensive than originally estimated. Businesses which were first enticed with seemingly low hourly wages find themselves committed to paying more than they ever bargained for.

As one example United Technologies, an acknowledged leader in developing offshore best practices, was saving just over 20 percent by outsourcing to India in 2003 (and wages are higher there now). That's still substantial savings, to be sure. But it takes years of effort and a huge up-front investment. For many companies, it simply may not be worth it. "Someone working for $10,000 a year in Hyderabad can end up costing an American company four to eight times that amount," says Hank Zupnick, CIO of GE Real Estate.

Google metrics for outsourcing searches have dropped 50% since then. According to the Black Book of Outsourcing, western firms such as CENIT, IBM Global and Infosdys still sell as many PLM outsourcing services to the world as do Indian firms Larsen & Toubro, Siri Technologies and Satyam. This is bad news for a country carrying perhaps the world's largest surplus in manpower. Such regions, through poor management and cultural barriers, are often too slow with creating domestic markets of their own. China faces similar problems.

A backlash trend to outsource to Europe or the USA is actually emerging now. Many investors, once burned, are looking for better long-term partnerships with contractors and suppliers. This is good news for engineering and design companies in the more developed nations. Stay alert. Opportunities exist for skilled designers in developed countries to demonstrate their value added. Suggestions for remaining competitive: keep resources, skills and training certifications updated, invest in innovation and R&D.

If you have a recent experience about your company's design work being outsourced (or not) feel free to post it HERE.

Can TransMagic Really Help Solve 3D CAD Translation Problems?

Recent economics have spawned an increasing need for business to adapt in new markets. And new markets often require companies to read new 3D CAD file formats - but "total cost of ownership" for maintaining additional CAD environments can be costly and time consuming. TransMagic is central, easy-to-use 3D collaboration software for reliably sharing CAD files across multiple CAD programs. TransMagic saves companies time, effort and money by offering a better option than budgeting and maintaining several independent CAD environments.

TransMagic software translates CAD information directly from one modeling technology to another, supporting direct ACIS, ParaSolid *.x_t, CATIA V4 & V5, Unigraphics JT and more, preventing data loss. TransMagic's functionality extends far beyond any basic 3D model translator, with robust tools like "Gap Check" and "MagicSurface". TransMagic repairs model gaps, heals unstitched surfaces and automates much of the rework that often comes with basic STEP and IGES file exchange.

Superlift, one of the largest suspension companies in the off-road market, is one manufacturer using TransMagic to save time. "TransMagic has made it possible to open any neutral or native CAD file we receive, quickly isolate, repair and retrieve what we need," said Kevin Dill, Product Development Lead Engineer for Superlift. "Repairing damaged files and grouping what we need prior to importing has saved us lots of time. Our time is now better spent working with clean, manageable files that we can rely on as we design new products."

ZEMAX Development Corporation, developers of ZEMAX optical system design software, had a similar problem. "Our customers struggle with the handover between mechanical and optical engineering – they are optical engineers and not experts in CAD. Mechanical CAD packages are three orders of magnitude coarser resolution than what is needed for optical design and errors in mechanical designs may not be apparent in the CAD package," says Mark Nicholson, Vice-President, ZEMAX Development Corporation. "TransMagic is able to simply explain what is wrong with a badly-formed CAD file and then easily repair the file with a high resolution before importing into ZEMAX. CAD files repaired by TransMagic are imported into ZEMAX with no problems."

An independent review of TransMagic was recently written by Frank Sherosky of the Detroit Automotive Technology Examiner. In part he writes, "TransMagic appears good for suppliers, because it reads proprietary CAD files in their native formats. (While the operative word is "read," I'm also concerned with "write.") That alone makes for higher data-read integrity, not to mention same-day implementation. Furthermore, the company touts the system is scalable, meaning suppliers can buy value-priced suites and add more capabilities at a later time." The full review can be read HERE.

For more information about if TransMagic can help your business, you can contact us on this page.