A start-up business or company deals with many risks . With limited time , money and resources to make a product and deliver it with quality pose many challenges.
The complexity of development of products starts from idea to designing , prototyping, manufacturing and finally going into production. The product development cycle requires expertise in all fields and in-depth knowledge of many technologies. Smaller start-ups and product companies who do not possess in depth knowledge of the product design and development turns to other companies for their requirements. This helps the start-ups to focus on their strengths and utilize other companies strength to reduce the time to market and build a better product.
Product development broadly can be divided into following stages :
1) Design phase : Design Feasibility and Cost Analysis , regulatory requirements, analysis of reliability and availability
2) Prototype and Validation phase : PCB design, embedded software validation
3) Manufacturing phase
Each of these phase requires expensive tools and capital equipment expenditures which can be lowered significantly if these can be outsourced to the external custom electronic design team that has the required tools and experience. This will in turn reduce the operational cost of the start-up business and help them to focus on their strategy and lean them to profitability.
Outsourcing design requirements encourages accountability as experienced and reputed EMS team will be working on the project which in turn minimizes the chances of failure.
The high costs of CAD tools, maintenance and staff training also make a good case for this approach. However, handing over your latest concept to a design bureau is not a decision to be taken lightly. The design bureau should be capable with proven experience in delivering the product or design.
Outsourcing electronic design or product design has many direct benefits some of which are less time to market, less operational cost, more time for focusing on actual product idea and last but not least delivering quality product.
Argus has long history working with some of the biggest names in the electronics industry, and have vast experience working with engineers and project managers who favor the ‘outsource’ model. Thus the outsourcing model is recommended in electronic design and product design fields and is a proven model which can be used to benefit any product development company.