Global Engineering Services Outsourcing Market 2016-2020
About Engineering Services Outsourcing
Engineering services have been outsourced in recent years on a large scale. However, this time, it is not only to reduce costs but also to bring about innovation in product development. Engineering services are different from other functional outsourcing services due to the nature of complexities involved in various phases of the product development process. Innovation is the key to staying competitive in the marketplace. It is needed for organizations operating in industry verticals such as automotive. The technology landscape in several industry verticals is changing at a rapid pace, which has replaced the legacy system.
Technavio’s analysts forecast the global engineering services outsourcing market to grow at a CAGR of 25.68% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global engineering services outsourcing market for 2016-2020. To calculate the market size, the report considers the revenue generated from the subscription of ESO services.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Engineering Services Outsourcing Market 2016-2020
Technavio recognizes the following companies as the key players in the global engineering services outsourcing market: HCL Technologies, Infosys, TCS, Tech Mahindra, and Wipro.
Other Prominent Vendors in the market are: Luxoft, Cyient, Tata Elxsi, QuEST Global, Symphony Teleca, Aricent, Mindtree, Tech Mahindra, GlobalLogic, and Xchanging.
Commenting on the report, an analyst from Technavio’s team said: “Automation in engineering services has triggered the usage of AI technology. AI-powered engineering solutions help to resolve various stages of design and development of engineering products. Automation in engineering services helps an organization to reduce cost by 35%-45%. Leading vendors in the market have invested in the development of engineering services powered by AI technologies.”
According to the report, advanced IT solutions such as AI and machine learning are driven by automation in the various stages of product engineering phases. The traditional IT services are not capable of making innovative products to improve performance. The need to replace legacy automation systems with new highly efficient automation solutions for process improvements is one of the primary drivers in the market.
Further, the report states that protecting IP is one of the major challenges confronting the global ESO market. Outsourcing engineering tasks to other countries raises IP concerns, given the risks associated with theft, or misuse of trade secrets or loss of IP rights. ESOs just work on the products of their customers, and they do not own them. Any innovation that emerges as a result of the work carried out belongs to the third-party service provider. Therefore, the enterprises that outsource their engineering services to third-party vendors always have concerns for IP loss as the service providers serve multiple customers that can be competitors.
HCL Technologies, Infosys, TCS, Tech Mahindra, Wipro, Luxoft, Cyient, Tata Elxsi, QuEST Global, Symphony Teleca, Aricent, Mindtree, Tech Mahindra, GlobalLogic, Xchanging.