Written based on Bamboo Apps’ practical experience, this whitepaper provides C-Suite with a success model that allows for a seamless transition of an automotive R&D project to an external partner.

1. R&D Outsourcing
in Automotive
auto.bambooapps.eu
A C-Suite guide for staying
ahead of the game

2. Factors that contribute to the
increasing use of outsourcing
Digital solutions make up to 50% of the development costs of
new cars
Integration of software & hardware boosts the complexity of
solutions
Fast-changing customer demands force OEMs to shorten
product life cycles
Global shortage of technology talent
design and software studio auto.bambooapps.eu

3. Despite the popularity of outsourcing, two-thirds of the
executives report issues during the transition of projects to
outside vendors.
According to PwC’s study “R&D Outsourcing in Hi-Tech Industries”
design and software studio auto.bambooapps.eu

4. Therefore, you can predict the success of an outsourced
project by evaluating ESP’s expertise, capacity, and
operational maturity.
design and software studio auto.bambooapps.eu
Most of the issues are tied with
vendor’s expertise and ability to
deliver

5. Contractor type
3 factors validating vendor’s expertise and capacity
automotive solutions;
cost and time effectiveness
limited capacitylack of experience
lack of knowledge of industry-specific
standards and practices
lack of highly-skilled talent
Large outsourcing companies
+ +
- -
niche expertise
specialized experience and skills
better quality of solutions
Service agencies
design and software studio auto.bambooapps.eu

6. 3 factors validating vendor’s expertise and capacity
Scalability of experience
Partners with scalable experience allow OEMs to flexibly scale their
own projects and cost-efficiently outsource projects of different
complexity levels.
design and software studio auto.bambooapps.eu

7. 3 factors validating vendor’s expertise and capacity
Design and technical excellence
design and software studio auto.bambooapps.eu
deep understanding of software and automotive hardware
sufficient knowledge of frameworks and restrictions
mastery of testing and prototyping.
Check ESP’s portfolio for:

8. 3 parameters that hint at ESP’s operational maturity
Vendors with such experience more accurately estimate effort, time,
and resources, and show more initiative in project management.
Successful collaborations &
internal R&D projects
design and software studio auto.bambooapps.eu

9. 3 parameters that hint at ESP’s operational maturity
Communication strategy
Vendor’s communication matrix should suggest having
accountable teams in both companies as well as an agreement
on frequency & format of interactions.
design and software studio auto.bambooapps.eu

10. ESP should offer expertise in
3 parameters that hint at ESP’s operational maturity
Governance structure
creating a team of best-suited project managers
distributing roles and responsibilities
defining procedures of product delivery and approval
design and software studio auto.bambooapps.eu

11. “Think of management as a
two-way street”
“Communication and strong governance are critical for teams that are
separated by distance and time zones. In our experience, creating a
governance team has a tremendous impact on the success of projects. Such a
team was created for Bamboo Apps’ partnership with Jaguar Land Rover. The
governance team monitors the overall communication, project schedule, and
budget. Plus, it works as a decision-making center for the topics that can’t be
resolved within the project”.
design and software studio auto.bambooapps.eu
Anatoly Spirkov,
Chief Operating Officer

12. Download a free copy of our guide to
R&D outsourcing
Access in-depth analysis of trends
and more real-life experience from
Bamboo Apps executives
design and software studio auto.bambooapps.eu
Download

13. About Bamboo Apps
At Bamboo Apps, we design and develop solutions in connectivity,
infotainment and HMI domains. Our expertise and experience help our
clients successfully respond to digital disruption and shape new trends in
automotive.
Harju maakond, Tallinn, Kesklinna linnaosa,
Maakri tn 19-7k, 10145, Estonia
www.auto.bambooapps.eu
contact@bambooapps.eu
+372 602-7353
design and software studio auto.bambooapps.eu