What are the engineering services that cannot be outsourced in practice?

 There are many processes that limit the amount and type of work that can be offshore outsourced:

  1. proximity needs
  2. expertise
  3. licensure
  4. quality of work.
Construction or manufacturing engineering requires proximity to where the project is being undertaken. U.S. engineers possess expertise in specific areas, making it undesirable to use foreign engineers. Certain types of engineering work require the signature of a licensed engineer. Thus far, it is difficult for a foreigner to become licensed or for licensed engineers to sign off on work that is not done under their direct supervision. Finally, if offshore outsourcing results in diminished quality, insurance companies may take notice and charge higher premiums. This added expense would make offshore outsourcing less appealing. (Source: http://www.wise-intern.org/journal/2004/WISE2004-LoriSimpsonFinalPaper.pdf Page 3)