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Offshoring of Engineering Services in the Construction Industry--John I. Messner
Pages 137-148

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From page 137...
... companies are being designed with some industry, including facility programming, design of engilevel of engineering work in low-cost engineering centers. neered systems, construction engineering and management, To date, offshoring of design services for smaller projects and facility management.
From page 138...
... has defined offshoring size of the global industry are limited and not very reliable, in the construction industry as "the practice of acquiring but Engineering News Record data collected from multiple architectural/engineering services from sources outside of sources show that the global construction market grew from the United States" (ASCE, 2005)
From page 139...
... According to Engineering News Record, which ranks the top 500 design firms in the United States ENGINEERING SERVICES IN THE each year, they generated $59.25 billion in design revenue in CONSTRUCTION INDUSTRY 2005, an increase of 11.8 percent over 2004 (ENR, 2006c)
From page 140...
... Although disciplines has been declining since 1985, with only a slight there are many civil engineers in the workforce, the average increase between 1993 and 1995, the number of graduates starting salary for these graduates is one of the lowest for in civil engineering increased sharply in the mid 1990s. Unany engineering discipline.
From page 141...
... We do know that future trends in offshoring. several of the largest universities in China are graduating To date, the offshoring of engineering services to lower civil engineers, including Tsinghua University with 811; wage locations has primarily been focused in the EPC secCentral South University with 593; and Wuhan University tor.
From page 142...
... This type with low-income countries that are known for providing low- of repetitive, detailed engineering work makes offshoring cost engineering services to the EPC and AEC sectors of the more attractive than in some other design practices because construction industry. In 2004, the United States exported it is easier to systematize this type of work and less direct $107 million of CAE services to India (the location of many communication is required between the designers.
From page 143...
... Offshoring in the Architectural, Engineering, and Construction Sector Service providers in low-wage countries are organizing to Offshoring in the AEC sector primarily affects two profes- provide design services with offshore labor to architecture sional groups, engineers and architects. Until very recently, and engineering companies.
From page 144...
... ing engineering work to countries that maintain a supply of Cost is one of the main concerns in facility design, and low-cost engineers. the cost of architectural and engineering-design services Different construction industry participants reaped differvaries widely as a percentage of the cost of a project.
From page 145...
... Many who had already es- criteria. These outcomes, "the knowledge, skills and traits tablished operational, low-cost engineering centers abroad necessary to become a licensed professional engineer," are believe that they can develop quality engineered solutions described in The Civil Engineering Body of Knowledge for and documentation at a lower cost in their design centers, the 21st Century: Preparing the Civil Engineer for the Future provided the design teams are properly structured and man- (ASCE, 2004)
From page 146...
... in engineering services in the industry. Executives in companies that already use lower cost engineering centers feel that limiting the use of offshore engineers would negatively Recruiting and Retaining Engineers impact their ability to compete on a global scale.
From page 147...
... A significant number of executives are concerned that the use of lower cost engineers will have ACKNOWLEDGMENTS a negative impact on the quality of engineering services, thereby decreasing, or even cancelling out, the benefits of The author would like to thank the National Academy of reducing engineering labor costs. Engineering and the Construction Industry Institute (CII)
From page 148...
... 2005. Offshoring of engineering services.


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