Why your business should consider outsourcing its Internet of Things R&D
There's a lot to know about the benefits of outsourcing your IoT (Internet of Things) R&D (research and development), especially as internet of things technology becomes more complex.
The Internet of Things is changing almost every industry. Gartner reports that the number of IoT endpoints will increase to 5.8 billion by the end of next year. This will be a 22% increase from 2019.
The growing demand for new IoT solutions is putting a lot of pressure on companies in various industries. They are going to need to adapt new R&D options to bring IoT technology to the market.
Some of the biggest challenge that IoT developers face include increasing adaptability and promoting flexibility. Many companies lack the talent to handle these tasks in-house. This may require a greater number of companies to outsource their IoT development services.
IoT outsourcing becomes necessary in 2019
The IoT market is becoming incredibly complex, which is driving a growing number of companies to outsource their development.
It is very challenging to get all of the variables and logistics for Internet of Things hardware devices precisely right and ready for market. The process is complex. Without the right expertise, those who go it alone tend to find that they make bad decisions that lead to new risks to their business.
The risks are especially high in some fields where the logistics are even more complicated. The automotive IoT market is one example. The demand for automotive IoT solutions has risen dramatically. Over 220 million cars will be connected to the IoT next year and 90% will be on the IoT by 2040. This has made it more important than ever to make sure that cars are properly equipped for the IoT.
Companies can minimize complications by partnering with an outsourcing collaborator with the right expertise in R&D. They can find a number of benefits, such as:
- This enables them to hire up to five times the number of staff for design and engineering at a lower cost.
- The expertise will lead to many new creative ideas beyond what was possible without their knowledge making for increased business opportunities.
- Throughout the lifespan of the product, they will have much greater access to resources with greater flexibility.
- They will have greater control over project expenses and the results.
When you think of outsourcing your IoT for R&D, it seems this would be a costly venture to your business, but it would actually save you money and generate more revenue adding to your bottom line.
Advantages of outsourcing
When you choose to outsource your IoT R&D with a partner, the designers and engineers bring expertise to the table allowing creative ideas beyond the scope of what was available to you without their knowledge. With this comes many benefits. Let’s break them down:
- You can hire up to five times the number of staff members for design and engineering at a lower cost. How is this possible? When you outsource your R&D to a team of experts, it doesn’t take them long to get on board with what’s happening and they are knowledgeable in a multitude of varying disciplines. In order to have this type of skill and talent in-house, you would need to pay a several-hundred-thousand-dollar salary yearly with outsource staffing agencies resulting in generally the same fees.
- You can anticipate a ‘to-market’ scenario much faster than you would have been able to by going it alone. When you work with a team of multi-disciplined experts, the product development moves quickly, particularly if they are going to go along with a predictable process. Within a few weeks, it should be possible to move from the idea stage to where there is a concept for a high-level product manufacturer.
- The expertise will generate creative ideas beyond what was possible without their knowledge making for increased business opportunities. There is nothing better than receiving the constructive feedback on your product from a team of experts in the industry who bring extensive knowledge on IoT development. This gives you a massive competitive advantage. There are opportunities for new features and applications for the product, new IP, and expense-saving, all discovered by way of this organic program.
Choosing to outsource your IoT R&D with experts allows you to have better control over costs for the project as well as the outcomes for your business. With this type of assistance and know-how, the prototype ultimately developed will be of the caliber to bring investments and many more customers all while keeping the costs at a manageable level for the business, something that would have been difficult to do solely in-house.
Outsourcing is the key to a thriving IoT market
The IoT market is growing rapidly. A number of new challenges are on the horizon. Companies will need to start outsourcing their IoT R&D processes to make the most of it.
Author: Annie Qureshi