Is it worth outsourcing PLC programming and automation services for your manufacturing company?Historically, outsourcing a business task to freelancers directly or through an agency was often associated with subpar quality work and a recipe for wasting money. The outsourcing landscape has since come a long way. With increasing competition in the gig economy, individual freelancers and firms offering technical services in the manufacturing industry are constantly pushed to hone their skills to keep up with the increasingly demanding job requirements.
Some tasks or projects traditionally reserved for internal full-time employees have made their way to the freelance outsourcing market, for example, PLC programming services. The need for manufacturing automation has steadily increased since the late 1960s. General Motors was the first to set an example of how industrial automation in the car production assembly line could yield higher output in less time with consistent quality. The same approach can be implemented in any other mass-production process.
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PLC is a central console on a factory floor to configure how other machines should perform at any given time. It is like the Internet of Things but on a much larger scale. PLC programmers ensure that every factory manufacturing equipment can run 24/7 all year with minimum human inputs and maintenance. The system executes the automation process based on the pre-programmed computerized control structure and monitors the performance to prevent anything beyond the safety threshold. It keeps the machines used for the manufacturing process running to their full potential at all times for optimum production results.
As for PLC operational reliability, the most important determining factor is programming diligence. It is a specialized profession within the field of computer programming. As such, hiring a full-time PLC programmer (or a team of those) is a costly undertaking. The average annual wage for a PLC programmer in the United States is around $98,000, making even a reasonably high $50/hour freelancer rate appealing. Outsourcing the PLC programming to a manufacturing automation development firm is also possible, but the rate is likely higher.
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Individual freelance PLC programmer
With less money spent on overhead costs, a local freelance PLC programmer working in a home office tends to offer a competitive outsourcing rate. The PLC programmer can access the PLC remotely to make minor changes or troubleshoot technical issues. At some point, the PLC programmer will have to visit the work site, which means the employer or client must pay an extra fee to compensate for the transportation and related expenses. For the program/code, PLC programmers can build everything from home and only come to the site for installation. Finishing a new PLC program installation and checking for errors may take several weeks. Although affordability sometimes means low-quality service, there are some possible downsides.
Advantages:
- Low cost: compared to hiring full-time PLC programmers, outsourcing the task to an individual freelancer is more budget-friendly.
- Practical: hundreds of freelance PLC programmers from all across the country offer their services at competitive rates. The hiring process is often quick and helpful. A client starts by email to inquire about availability and qualification before the actual hiring routine (negotiations, project briefs, contracts, NDAs) begins.
- Great for small projects: unless you need to overhaul the existing program or design a new PLC system, chances are most freelance PLC programmers can tackle the challenges well. Minor modifications, setting up a new control structure for additional machinery, or troubleshooting a connectivity issue do not likely require a team of programmers.
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Disadvantages
- Language barrier: It is advisable to hire a PLC programmer who is fluent in the same language as the company. Effective communication between the manufacturing company and the PLC programmer is essential for achieving successful results when dealing with a critical component like a PLC system. A clear understanding of the project brief and job descriptions by the PLC programmer is crucial to minimize the need for extensive program modifications.
- Unreliable programmer: there is always a chance that PLC programmers provide false information about themselves, such as their portfolio and qualifications. It can happen whether the PLC programming freelancers reside in a foreign country or the same area as the client. Make sure to verify testimonials or reviews from previous clients before hiring. If the freelancers exaggerate their qualifications, they likely overcharge for the services. If the project takes longer than expected, the client may need extra money to correct programming mistakes.
Since PLC programming freelancers tend to carry out every task individually, the turnaround time—even when everything runs without a glitch—will not be as fast as a firm with a dedicated project manager.
Manufacturing Automation Firms
When hiring individual PLC freelancers, the client communicates directly with the programmer. On the other hand, most automation firms usually have dedicated project managers to handle all communications with clients. As for the cost, a firm tends to charge more than freelancers do. It has a more considerable overhead (office space rent, taxes, and employee benefits, among others), and a portion of the cost is billed to the client. Although the higher rates do not always translate to better quality, clients traditionally have better confidence when working with professional DFM services rather than an individual PLC programmer.
Benefits
- Project managers: with dedicated project managers to bridge communication between the firm and the clients, the PLC professionals can focus on the task.
- Multiple professionals: If the project is urgent, outsourcing PLC programming to a firm gives the client access to numerous professionals. It is possible to provide a strict deadline when the workload is divided among a team of programmers.
- Formal working atmosphere: a firm has an established organizational structure. It has a clear schedule and a verifiable business address. An overall traditional working atmosphere creates a sense of predictability preferable by clients.
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Drawbacks
- Higher rates: whether the firm charges by the hour or on a per-project basis, the rates are always higher than an equivalent freelancer (both are based in the same country and equally experienced). However, timely deliverables and prompt communication may justify the extra fee.
- Multiple clients: if a freelance PLC programmer can only take a project at a time, a firm has the resources to work for two or more clients simultaneously. Although, in theory, it should not undermine the programming quality, it is not uncommon for a firm to relegate a project to a lower priority each time a higher-paying client comes along.
One of the main reasons to outsource PLC programming projects is cost efficiency. It takes a manufacturing or design for assembly company an extensive budget to hire, develop, and train an in-house PLC staff. No company needs to modify or upgrade a PLC system daily. The system requires regular checks and maintenance, but it makes more financial sense for small companies to outsource the tasks instead of spending a sizable budget on a team of full-time programmers. As the business grows over time and the manufacturing capabilities expand, a PLC department becomes viable.
Larger pool of talent
Outsourcing gives companies easy access to a larger pool of talent and expertise that are otherwise unavailable in-house. They can opt for starting the development early on—instead of hiring an external party each time the need for PLC programming arises—but establishing a full-fledged internal team of professionals comes at a high cost. Outsourcing is more suitable for startups and small companies because the volume of work during the early inception phase may not justify the development cost just yet. PLC programming remains a crucial element in industrial automation and affects nearly every aspect of the production process; no company can afford to be reckless in its implementation.
Experienced PLC programmers are costly, but outsourcing allows small manufacturing companies to utilize their knowledge and expertise at reasonable rates. Many individual freelance PLC programmers are just as skillful as the in-house team of an established company. To some extent, freelancers are more experienced and capable of adapting to changing requirements because they have been doing similar tasks over an extended period, most likely for a broad range of clients from different industries.
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IP concerns
The most significant downside of outsourcing is the risk of compromised intellectual property and the threat of cybersecurity breaches. Remember that not every freelancer and firm has the courtesy and integrity to assure trustworthy and professional collaboration. Using a legally-binding NDA for outsourced projects is recommended. If the programmer has to access the PLC remotely, make the connection private and secure, such as with a VPN.
Another primary concern is poor PLC programming quality. Outsourcing has many limitations. Among the most frequently cited downsides is the lack of control over the day-to-day routines during the project. Poor quality often results from the lack of good communication due to a language barrier or simply inadequate due diligence on the client’s part. In addition to checking the freelancers’ or firms’ credentials before hiring, the clients must provide a clear project brief filled with detailed requirements and PLC specifications.
How Cad Crowd can assist
If you need a PLC Programming and Automation specialist for a project or assistance with other manufacturing services, choose Cad Crowd. Our talent pool is continually growing, and our procedures protect your privacy and intellectual property rights. Get the process started by requesting a free quote today.