Engineering services outsourcing Market in APAC 2016-2020
About ESO Market in APAC Region
Engineering services in APAC remains a dynamic and fast-evolving area of the global outsourcing industry. In APAC, engineering services outsourcing (ESO) is a relatively new trend compared to IT and other business process outsourcing services. ESO helps companies to boost business flexibility, reduce R&D costs, and help to resolve engineering bottlenecks. The use of ESO services also boosts efficiency gains through product specialization and scale effects. Product engineering is a crucial step for OEMs and their respective component suppliers.
Technavio’s analysts forecast the ESO market in APAC to grow at a CAGR of 25.5% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the ESO market in APAC for 2016-2020. To calculate the market size, the report considers revenue generated from the contracts outsourced to APAC.
The market is divided into the following segments based on end-user:
Technavio Announces the Publication of its Research Report – ESO Market in APAC Region 2016-2020
Technavio recognizes the following companies as the key players in the ESO Market in APAC Region: IBM, HCL, Wipro, and Infosys.
Other Prominent Vendors in the market are: KPIT, Altran, Aricent Group, Atos Origin, Beyondsoft, Capgemini, Clasoft Labs India, Computer Sciences Corporation, Cybage Software, GlobalLogic, HP, iGate, L&T, MindTree, Mindfire Solutions, QuEST Global Services, Sonata Software, Symphony, Tech Mahindra, Tata ELXSI, and Vanceinfo Technologies.
Commenting on the report, an analyst from Technavio’s team said: “High-performance computing plays a crucial role in the manufacturing industry. Companies are working aggressively on technologies such as CAED and MCAD to test the well-ordered movement of components and the structural integrity of products. CAE software enhances the productivity of manufacturing companies by shortening project turnaround times and improving the quality and accuracy of work. Many companies are switching to CAED because database integration modules allow other departments to monitor and control the progress of various projects.”
According to the report, the growth of the ESO market in APAC is driven by the need to reduce time-to-market. Enterprises need to stay ahead of their competitors (in terms of innovation) to sustain business in competitive markets. ESO solutions enable these companies to outsource engineering tasks to emerging countries such as India and China, which provide skilled labor at low costs. Such outsourcing also helps to reduce product development cycles.
Further, the report states that security concerns over intellectual property is inhibiting market growth in APAC. Outsourcing involves sharing a wide array of proprietary knowledge with multiple business partners. Hence, concerns are often raised over the ability of offshore partners to safeguard sensitive business information.
IBM, HCL, Wipro, Infosys, KPIT, Altran, Aricent Group, Atos Origin, Beyondsoft, Capgemini, Clasoft Labs India, Computer Sciences Corporation, Cybage Software, GlobalLogic, HP, iGate, L&T, MindTree, Mindfire Solutions, QuEST Global Services, Sonata Software, Symphony, Tech Mahindra, Tata ELXSI, Vanceinfo Technologies.