Worldwide and U.S. Research and Development/Product Engineering Services 2015–2018 Forecast
This IDC study forecasts fairly robust growth for the R&D/product engineering services market in the long term as technology product customers continue to increase their focus on long-term outsourcing contracts for their product development, engineering, and innovation work to outsourcing vendors. IDC forecasts that customers will increase their outsourcing spend in 2015 for these services. IDC estimates these services to reach approximately $70.9 billion in 2018.
The R&D/product engineering outsourcing services market has crossed the chasm and is now a serious contender for a larger share of the technology product customers' R&D spend. However, engineering services providers need to be cognizant of the fact that as this business evolves, technology product customers will expect providers to deliver a lot more in terms of innovation as well as investment in terms of cocreating intellectual property.
"Providers that have invested in social, mobile, analytics, and automation technologies will gain a larger share of their customers' R&D budgets," says Mukesh Dialani, research director, BPO and Engineering Services, IDC. "Providers need to up the ante as their customers struggle with stagnating R&D budgets. On their part, customers should approach the engineering services provider relationship as one that supplements their efforts to create innovative products that meet their end-customer expectations."Please Note: Extended description available upon request.
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