ESO refers to the outsourcing of specific engineering services. Engineering services are the core business activities of industries such as automotive and aerospace. However, due to lack of expertise and increased pressure to reduce costs, companies have started outsourcing their engineering services requirements. The need for quick delivery of products and services because of shorter product lifecycle has prompted the need for ESO. In addition, the inherent benefit of cost advantage remains a key criterion for businesses outsourcing their engineering services.
Technavio's analysts forecast the ESO market in India to grow at a CAGR of 30 percent over the period 2014-2019.
Covered in this report
Technavio's report, ESO Market in India 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the market landscape and its growth prospects in the coming years. The report also includes the profiles of key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Engineering Services Outsourcing (ESO) Market in India 2015-2019
Technavio recognizes the following companies as the key players in Engineering Services Outsourcing (ESO) Market in India 2015-2019: HCL Technologies Ltd., Infosys Ltd., TCS Ltd. And Wipro Ltd.
Other Prominent Vendors in the market are: Altran, Aricent Group, Atos Origin, Auriga, Capgemini, Clasoft Labs India, Computer Sciences Corporation, Cybage Software, Dell, GlobalLogic, HP, IBM, iGate, Infotech, KPIT Cummins Infosystems, L&T IES, Mahindra Satyam, Mindfire Solutions, MindTree, QuEST Global Services, Sonata Software, Symphony and Tata ELXSI
Commenting on the report, an analyst from Technavio’s team said: “The free flow of information across geographies, driven by the increasing usage of the internet, has resulted in shortening of product lifecycles. Some products are becoming obsolete in the online industry even before hitting the market because the underlying technology has failed to keep pace with advances in the market. Other dynamic market segments such as consumer electronics and telecom are also suffering from the same problem. Time-to-market is particularly important for new products as it enables companies to capture a larger market share compared to the competition. Early entry in the market enables companies to enjoy premium pricing of the product. This also provides high ROI and fast redeployment of resources. Growth in Indian offshore ER&D played a vital role in accelerating innovation and established India as a design and innovation hub. The most preferred outsourcing destinations such as India and China provide 24/7 services to their clients, which helps companies minimize product development times.”
According to the report, businesses worldwide are cautious about cost management during the set-up of R&D facilities. India is the most preferable destination for ESO because of its cost advantage and high availability of skilled labor. Indian service providers get contracts from western countries including the US, the UK, and Germany because the cost of ER&D is low in the country compared to the west.
Further, the report states that issues pertaining to IP ownership are deterring some companies from outsourcing their engineering needs to the country.
HCL Technologies, Infosys, Tata Consultancy Services, Wipro, Altran, Aricent Group, Atos Origin, Auriga, Capgemini, Clasoft Labs India, Computer Sciences Corporation, Cybage Software, Dell, GlobalLogic, HP, IBM, iGate, Infotech, KPIT Cummins Infosystems, L&T IES, Mahindra Satyam, Mindfire Solutions, MindTree, QuEST Global Services, Sonata Software, Symphony, Tata ELXSI
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