Debunking Myths; Outsourcing Technical Engineering Services for Manufacturers of Medical Devices and Laboratory Systems.
- wiamz1
- 6 days ago
- 7 min read
Updated: 2 days ago
In this post, we’ll break down some of the most common myths around outsourcing technical engineering services
for Manufacturers in the medical and laboratory device sector and explain how the right partnership can actually strengthen Original Equipment Manufacturer (OEM) service model, reduce risk and increase reach without compromising on quality or control.
"If you are an OEM service leader looking to reduce your Mean Time To Repair, bring your Install Base Preventative Maintenance Schedules back in date, and have instant access to 50 UKI based engineers, then this is a must read"
The UK medical and laboratory device outsourcing market is expected to reach approximately £5.7 billion by 2030, growing around 12.4% annually, as more Original Equipment Manufacturers turn to outsourcing their Technical Engineering Services to expand their support capabilities. Worldwide, about 66% of companies already outsource at least one function and 80% of executives plan to maintain or increase their outsourcing spending. Yet, outsourcing technical service for medical and laboratory devices often raises concerns especially for OEMs who are protective of their brand, their engineers and their customers. That’s understandable. However, these are based on outdated assumptions or misinformation.
At Hugo Technology, we work exclusively with OEMs under formal contracts and our engineers are only deployed once they’ve been fully trained on their equipment and processes. We don’t work for hospitals. We don’t compete with OEMs, we support them.
Why Manufacturers Are Under Pressure to Outsource Technical Engineering Services
When promised service levels hit operational reality
Real-life challenges for OEM service teams include:
Overdue Preventive Maintenance (PM) due to staff shortages or misaligned resources, leading to growing backlogs.
Sudden spikes in service volume from Field Safety Notices or recalls, instantly multiplying workload.
Missed MTTR targets, resulting in SLA penalties and reputational damage.
In-house teams stretched by prioritising flagship capital equipment, delaying service on ‘less profitable’ or legacy devices/systems.
Rising Post-Market Surveillance (PMS) and compliance demands (EU MDR/IVDR) without corresponding increases in internal bandwidth
These aren’t theoretical risks or one-off events – they are daily pressures faced by OEM service leaders. From overdue PMs to recall fire-drills, the gap between promised service levels and operational reality is widening. It’s clear why many are feeling the heat and looking for relief.
Myths About Outsourcing Technical Engineering Services for OEMs
Addressing the common fears head-on
Despite the benefits of outsourcing Technical Engineering and support services to Independent Service Organisations Like Hugo Technology, some OEM leaders hesitate to do so due to understandable worries. Let’s tackle those myths one by one:
“Outsourcing means losing control of quality – and risking our brand reputation.”
Not with the right partner. At Hugo, every engineer is trained and certified directly by the OEM before working on a device. We follow OEM SOPs, use OEM documentation, and uphold ISO 13485-compliant processes. Our team integrates seamlessly with OEMs, and when required, we can operate under their brand, wearing their uniform or ID whilst following their customer protocols. End users see a consistent, professional service experience. No confusion. No brand risk. OEM brand, their standards - extended, not diluted.
“Outsourcing sounds expensive — we can’t justify the cost.”
In fact, outsourcing the right way often saves money and unlocks value. With Hugo, OEMs convert unpredictable, resource-intensive service costs into a scalable, performance-based model. They only pay for what they use with clear SLAs, fixed rates, and no hidden overheads. Plus, OEMs avoid the cost of recruiting, training, and managing an internal team for non-core or high-volume devices. Outsourcing is not a cost center, it’s a cost stabiliser.
“We’ll lose responsiveness or control over service performance.”
Outsourcing agreements include strict performance SLAs and real-time reporting that keep OEMs firmly in the driver’s seat. OEMs define the response times, uptime targets, PM completion rates, etc., and the partner is contractually bound to meet them – often with penalties for shortfalls. Leading providers like Hugo Technology offer transparency through dashboards, regular business reviews, and joint oversight meetings. OEMs know exactly what’s happening with that device/system line at all times. In fact, because the partner’s team is focused on that product (and often has a nationwide presence of field engineers), they can respond faster than an overstretched internal OEM team in most cases. OEM control isn’t lost; with the right partner, it’s enhanced by greater field coverage and data visibility especially with Hugo technology’s reach of 50 UKI engineers.
“Will outsourcing threaten our engineers’ jobs or make my role redundant?”
Strategic outsourcing isn’t about replacing OEM’s people, it’s about protecting them. Hugo supports OEMs when internal teams are overstretched, not when they’re surplus. We typically take on pre-defined device lines to relieve pressure, so OEM engineers can focus on flagship equipment and innovation. Service Managers benefit too - with fewer fire-fights, better SLA compliance, and more time to lead. In reality, this often leads to stronger internal performance, less burnout, and even new investment in OEM team. Hugo doesn’t compete with OEM teams - we help them perform at their best.
“Will Hugo compete with us for service contracts or go direct to our customers?”
Whilst true for a number of service providers, Hugo Technology is an Independent Service Organisation (ISO). We do not sell service contracts, we never approach hospitals or end-users and we refuse such attempts from hospitals or end users. Our business model is built on trusted, long-term partnerships with OEMs - not competing with them. Every service activity we perform is done on behalf of the OEM, under their name, using their approved processes. This clarity is why 20+ OEMs trust Hugo to support their brand and safeguard their customer relationships.
By busting these myths, the path to smart outsourcing becomes clearer. An external technical service engagement, done right, protects OEM brand, maintains quality, and improves responsiveness, all while freeing internal resources. It’s not a step back from control – it’s a strategic step up to a higher level of service execution.
Strategic Approach – Outsourcing Technical Engineering Services for OEM-Defined Device Line(s)
How smart OEMs stay in control and on top
Outsourcing technical engineering services for a segment of devices or systems by Manufacturers to a trusted Independent Service Organisation can be a game-changer. Savvy OEMs aren’t outsourcing everything, however they identify a subset of products or services that can be managed externally without sacrificing quality or control.
For example, a common approach is to outsource maintenance and repairs for a specific device line – often a low-to-mid tier range with a large installed base – while keeping internal teams focused on the flagship, high-revenue platforms.
This targeted outsourcing model yields multiple benefits which include:
Internal focus on core products
By offloading the servicing of a secondary device family, OEM’s in-house engineers and support staff can concentrate on what matters most – the cutting-edge or premium devices/systems that drive business. Resources that were stretched across B and C tier products get refocused on A-tier innovation and customer support. (As a bonus, OEMs also save on the costs and training required to maintain an in-house team for those older or possibly less specialised devices).
Expert care under OEM standards
The outsourcing partner takes over PMs, repairs, and even FSN implementations for the designated line strictly following the OEM’s SOPs and quality standards. The external engineers are trained by the OEM and use the same documentation, parts, and processes as the OEM’s own team, ensuring a seamless service experience for end customers. There is no loss of control or consistency – it’s OEM service, just executed by an extension of the OEM team.
Improved service metrics and capacity
With dedicated attention on said device line, results quickly improve. Preventive maintenance compliance rates go up and turnaround times go down when a focused team is managing the tasks. Meanwhile, overall capacity grows – the OEM’s staff regain bandwidth to cover more units or tackle other projects since they’re not bogged down in the outsourced line. In short, PM compliance ↑, MTTR ↓, OEM total capacity ↑.
Scalability for spikes
Crucially, this model adds scalability. If there’s a surge (say an urgent modification notice affecting that product line), the partner can absorb it without derailing a whole department. Outsourced service providers are built to flex with demand, ramping up manpower during recalls or rolling upgrades. Customers get rapid action, and OEM core team isn’t pulled away from their priorities.
By strategically outsourcing one device line, OEMs stay in control of their brand and quality while escaping the firefighting trap. There’s no dilution of OEM brand – the service can be white-labelled and indistinguishable from OEM’s own service. There’s no lapse in quality – the engineers are OEM-trained and metrics are contractually enforced. What there is: better performance, more bandwidth for their team, and fewer sleepless nights over service backlogs.
Case Study – Outsourcing in Action
From backlog crisis to service excellence
Let’s illustrate how this has played out with a Hugo Technology OEM Client:
A global IVD OEM was facing a 5-month preventive maintenance backlog across roughly 400 installed systems in the field. These laboratory systems were mid-tier (not the flagship product line), but crucial for hospital laboratories. Due to a mix of factors – a few unfilled field engineer positions, a spike in urgent work on higher-end systems, and new post-market updates – the routine PMs for the IVD systems kept getting postponed. Soon, over 400 systems were overdue for maintenance. The risk of hospital escalations grew by the day. With SLA penalties looming and increasingly unhappy customers, it was time for the Service Manager to take action.
Instead of stretching the internal team even thinner, the OEM engaged Hugo to take over service for this specific IVD system line. Within 3 months, Hugo’s team – fully briefed and trained to the OEM’s protocols were scheduling and performing those backlogged PMs. Hugo operated as an extension arm of the OEM’s engineers, therefore customers saw it as the OEM stepping up service.
5 months later, the entire 3-month backlog was cleared.
Every one of the 400 IVD systems had been brought up to date on maintenance, and not a single hospital had to escalate an issue.
The OEM’s internal team, meanwhile, has continued to focus on the top-tier systems without disruption whilst ensuring Hugo continued to support the PM and repair elements of the IVD systems.
Outcome: The OEM avoided SLA violations and regained customer trust, the IVD systems stayed in peak condition (reducing downtime risk), and the OEM staff could breathe easier. In the post-mortem, the service leader noted that outsourcing that system line not only solved the immediate crisis but provided a template for handling future surges and resource crunches. It was a proof-point that outsourcing even just one segment can dramatically improve operational resilience.
Final Thoughts: A Smarter Way to Support Your Devices
Outsourcing doesn’t have to mean giving up control. With the right partner, it means gaining capacity, reach and peace of mind without the overhead. Hugo Technology offers OEMs a smart, stable way to scale their service network without compromising quality or customer trust.
Have questions or want to explore what a partnership might look like? Let’s talk! Hit the button below and our team will be happy to discuss your requirements further
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