The Top 5 Compelling Reasons You Should Outsource The New Product Development In Your Company

If you outsource your NPD, will it be effective and economical, and should you give it serious consideration?

Here are some points we noted based on our research and experience providing product-development services to industry both in the UK and further afield:

1. Lower Costs

Outside companies are almost always faster than internal teams at developing new products because they apply a heightened focus and dedicated resources to the project.

This can:

  1. cut costs in the short term,
  2. result in a quicker ROI, and
  3. result in higher profits in the long term

2. Overload

outsource your NPD new product development and prevent team overloadIn-house product-development departments are normally inundated with work.  Corporate management tends to oversimplify the NPD process, which means design teams are typically overloaded with projects that require wide-ranging expertise. 

Most organizations would benefit by letting their engineering departments focus on fewer projects.

In effect, that is exactly what outsourcing provides: if you outsource your NPD, you’ll get dedicated resources focused on the completion of a single project.

3. Innovation

Innovation becomes increasingly difficult as organizations grow.  Reasons range from a history of doing things a certain way, risk aversion, a narrow focus on one’s own industry, and fears over cannibalizing existing products and income.  It takes a lot of gut and courage for companies to disrupt themselves.

Companies can overcome or mitigate these powerful factors through collaborating with Innovolo.

Research concluded that those firms that do both internal and external collaboration well are best equipped to succeed. [efn_note]Johnson, William & Filippini, Roberto. (2009). Internal vs. External Collaboration: What Works. Research-Technology Management. 52. 10.1080/08956308.2009.11657564. [/efn_note]

4. Productivity

outsource your NPD new product development and increase your productivityAs companies grow, teams spend less time on NPD versus maintaining existing products. For example, as companies grow and add products, they must use a greater portion of resources for sustaining engineering.

This limits the time available for NPD.

The problem gets worse until an organization separates NPD from other engineering functions, but this is usually feasible only in large organizations, unless of course you…

Yep, you guessed it.

5. Expertise

Most NPD requires diverse skills and experience. Relying only on internal resources makes it almost impossible to ensure the necessary expertise is always available when needed. External resources broaden an company’s knowledge and experience base.

Also, integrating internal resources with an outside firm widens the support network of suppliers, vendors, prototype houses, and the like.

This, too, can help accelerate a project.




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These are the easiest way to solve problem solution in marketing the product. It’s very easy to follow and they are very effective too.

For marketing of physical product it good to have a good innovative will great to have unique products than others.

Thank you so much for the amazing article! I can agree that Innovation is definitely one of the reasons for new product development. This article was definitely helpful.

Thank you very much for providing key points in outsourcing new product development. Moreover, this has been noted based on Innovolo’s own research and experience. So it sure is very reliable.

Yep, research and experience trumps everything. Glad they’re not just blowing smoke here without any credibility like so many things I see online these days.

These are the finest means to solve issues in product marketing. It is quite simple to follow and highly effective.

These are highly effective means to solve problems in marketing of new product development. It is very effectve and easy.

Innovation is essential and new Product development will gain ground if innovation is encouraged. I love this points as stated in the post.

Innovation is much easier when outsourcing. I am completely on board with the idea.

The biggest upside of outsourcing New Products is the lower costs. That’s something any company would love.

Does outsourcing NPD also mean outsourcing the product design? Is it possible to keep the product design in-house?

A smart solution can come about through outsourcing. I think it’s the right route to go.

Indeed a lot of load can be lifted from a company if they outsource their physical product development. They also get to save on time and money.

Outsourcing NPD means more brains working on the project. That fosters a lot of idea generation.

I couldn’t agree more that outsourcing is a brilliant way to create ideas. The potential benefits that could be realized are immense as outlined in this article.

New Product ideas aren’t the easiest things to come up with. In such a situation, outsourcing really does come in handy.

Idea commercialisation can be expedited whenever a company outsources NPD. Not to mention they also get to ease some pressure on themselves.

What percentage of NPD is outsourced when focusing on innovation in Cornwall. I am interested in knowing the statistics.

I can tell quite a few New product development in the UK have been as a result of NPD outsourcing. I am happy to see more companies embracing the idea of outsourcing innovation.

Product design really is one of the reasons why consumers actually go out of the way to buy a new product. Outsourcing it to people who know how and understand its importance is definitely a wiser choice than a company trying to do everything by themselves.

Would love your thoughts, please comment.x