The Real Savings of CAD Outsourcing
- Dave Green
- May 3, 2018
- 3 min read
Many companies struggle with the decision, whether to employ their own CAD Technician or outsource their CAD requirements to a CAD Services Company. There are many aspects that need to be considered for a decision such as this. This comparison is based on UK Salaries and Outsourcing CAD to Curo Modular Services.
Actual cost of an employee:
The actual cost of an employee is far more than just their annual salary. There is no point making a cost comparison between employing a CAD Technician and CAD outsourcing if the actual cost of employment is not known.
The average salary of a CAD Technician is largely dependent on experience and CAD Software. According to Payscale [1] the average salary is between £20,729 and £33,365. It should be noted that if a company is looking to employ a single CAD Technician who will be managed by a non-CAD experienced Manager, a highly skilled and experienced CAD Technician will need to be employed.
If a company, which has no CAD expertise, employees an unsuitable or inexperienced CAD Technician, then you introduce a new risk of having to manage this person while not having the core understanding yourself, creating an uncertainty of their work and potential trust issues.
Experience within the current job market shows that one should be able to employee an experienced CAD Technician (not a designer) for £30,000. With this salary, there should be a sound specific industry understanding, excellent CAD skills and good independent working, (minimal management by others).
To determine the actual cost of an employed CAD Technician, several factors need to be included in the cost calculation, such as:
One-off cost for CAD Software
Annual Subscription Fees of CAD Software
CAD Workstations (they are far more expensive than an average Office PC)
Regular Training
Share of general overheads such as rent, insurances, administration etc.
Holidays, Sick Days, unproductive working etc.
True cost of an employee: Use this calculator to find true cost of an employee. It will help you identify whether it is more cost effective to outsource a job function.
This image shows that the actual cost of an employed CAD Technician. The basic gross salary is £30,000, but the true hourly rate is £32.12 per hour.
Our CAD Services division will operate far more efficiently than this, as CAD is our core business and there are systems in place to maximize efficiency such as libraries, templates and a team of people whose knowledge we can call on.
CAD Outsourcing vs Employment:
Unsurprisingly the figures show that a full time employed CAD Technician is more expensive than outsourcing. This is also assuming the CAD Technician would be working on CAD every single hour of every working day for a full year.
You can see by this graph that at 100% efficiency of your employee, you can still save £17,000+ Per year by outsourcing.
Other aspects to consider with CAD Outsourcing:
A CAD Technician needs to be managed by a CAD Manager, who understands how to translate their customer requirements into CAD, which CAD processes to use and how to check drawings against industry standards.
Increase your existing CAD team on demand allowing to tender for larger contracts
No minimum hour requirements
Only pay for what you use
Our professional CAD Services employ a team of experienced people with a range of industry experience. This results in a vast pool of knowledge, experience and expertise.
References:
[1] PayScale, www.payscale.com @payscale
[2] Office for National Statistics, www.ons.gov.uk @ONS
[3] Accounting Services for Business, http://www.accountingservicesforbusiness.co.uk @asfb_uk
[4] Jenson Consulting, www.jenson-consulting.co.uk @InfoJenson
Please contact Curo Modular Services for more information on 0191 516 6036 or info@curomodular.com
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