Machinery Industry, Supply Chain
Identifying Optimal Countries for Engineering Subcontracting
Preview/Excerpt
To strengthen its engineering delivery capabilities, MachineryCo partnered with SprintlyWorks to identify nearshore and better-cost countries with strong subcontracted engineering potential. The study assessed 40+ countries across talent availability, cost, and ecosystem maturity, helping MachineryCo shortlist optimal geographies for expanding its subcontracted engineering footprint beyond traditional high-cost locations.
Outcomes
30%
Reduction in personnel costs
8
Countries identified with significant cost-saving potential
Problem Summary
MachineryCo relied heavily on subcontracted engineering in high-cost countries in Europe, and the U.S., driving up delivery expenses. While India was a key offshore location, there was limited strategic insight into regional nearshore alternatives. Lacking a data-driven approach to country selection, MachineryCo needed to identify better-cost markets with strong engineering talent and subcontracting ecosystems to diversify sourcing and reduce costs without compromising quality or delivery standards.
Situation
MachineryCo spends around €100 million annually on subcontracted engineering services, with most of the work concentrated in high-cost markets in Europe, and the United States. While India has served as a successful offshore location, internal KPIs now emphasize increasing the share of spend and hours allocated to better-cost countries (BCCs), particularly regional nearshore options. However, there was no structured understanding of which countries offered a favorable combination of engineering talent, cost efficiency, and subcontracting maturity. MachineryCo sought to fill this gap through a comprehensive country benchmarking and prioritization exercise.
Key Research Question
The key question driving the project was:
- What are the key criteria for identifying Regional Nearshore & Better-Cost-Countries for engineering subcontracting?
- How can MachineryCo assess the potential of countries in terms of the subcontracted Engineering service providers ecosystem?
- Which countries have the highest potential for becoming key locations for engineering subcontracting based on talent availability, labour expense and other relevant industry interest?
Our Approach
SprintlyWorks adopted a structured, multi-phase approach to help MachineryCo identify and prioritize regional nearshore and better-cost countries (BCCs) for subcontracted engineering services.
Phase 1: Define Selection Criteria & Longlist Countries
SprintlyWorks began by aligning on key evaluation criteria with MachineryCo’s steering team. Criteria included cost of engineering, language proficiency, availability of skilled talent, presence of subcontracted engineering service providers, industry maturity (e.g., automotive, mining, oil & gas), and macroeconomic stability. We then developed the SprintlyWorks Index, a composite scoring model, to assess over 40 countries and generated a longlist of 20+ promising candidates.
Phase 2: Deep-Dive Research on Shortlisted Countries
From the longlist, we identified 8 priority countries based on both the Index and internal stakeholder input. For each, we conducted in-depth analysis across six dimensions: talent pool size and quality, salary and inflation trends, subcontractor ecosystem maturity, relevant industry presence, education pipeline, and engineering service provider footprint. We also assessed each country’s appeal to Finnish companies, using indicators such as foreign direct investment and presence of MachineryCo-relevant peers.
Phase 3: Synthesis, Validation & Strategic Recommendations
We synthesized the findings into a comprehensive report and facilitated a strategic workshop with MachineryCo’s leadership. Each country was evaluated with a clear breakdown of strengths, limitations, and strategic trade-offs. The output included an actionable prioritization of countries best aligned with MachineryCo’s subcontracting objectives, balancing cost-effectiveness, service quality, risk, and scalability.
By triangulating quantitative indicators with strategic relevance and internal priorities, SprintlyWorks enabled MachineryCo to confidently expand its subcontracted engineering footprint in high-potential BCCs.
Results
SprintlyWorks delivered a prioritized shortlist of eight high-potential countries for subcontracted engineering, each supported by robust data and strategic rationale. The final recommendations highlighted countries for immediate focus areas, with other countries flagged for mid-term exploration. The structured framework enabled MachineryCo to shift from ad-hoc country selection to a scalable, data-driven strategy. Internal stakeholders aligned on next steps through a strategic workshop, setting the stage for pilot engagements in new regions. The initiative positioned MachineryCo to diversify risk, reduce costs, and strengthen regional capabilities for future engineering demand.
“Helped us move from gut-feel to global strategy.”
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