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Global Engineering Services Outsourcing Market 2016-2020

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:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Engineering Services Outsourcing Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • HCL Technologies
  • Infosys
  • TCS
  • Tech Mahindra
  • Wipro
Other prominent vendors
  • Luxoft
  • Cyient
  • Tata Elxsi
  • QuEST Global
  • Symphony Teleca
  • Aricent
  • Mindtree
  • Tech Mahindra
  • GlobalLogic
  • Xchanging
Market driver
  • Need to support industrial 4.0 revolution
  • For a full, detailed list, view our report
Market challenge
  • Issues pertaining to IP ownership
  • For a full, detailed list, view our report
Market trend
  • Emergence of artificial intelligence and machine learning
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

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.

Companies Mentioned

HCL Technologies, Infosys, TCS, Tech Mahindra, Wipro, Luxoft, Cyient, Tata Elxsi, QuEST Global, Symphony Teleca, Aricent, Mindtree, Tech Mahindra, GlobalLogic, Xchanging.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Countries covered
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Service offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Market landscape
    • Market overview
      • Table Evolution of ESO Solutions
      • Table Global ESO market 2016-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by services
    • Table Global ESO Market by services 2015
  • Market segmentation by end-user
    • Global ESO market by end-user
      • Table Global ESO Market by end-user 2015
  • Market segmentation by outsource destinations
    • Market segmentation by outsource destinations
      • Table Global ESO market by outsourced destinations 2015
  • Geographical segmentation
    • Global ESO market by geography
      • Table Global ESO market by geography 2015
    • Americas
    • EMEA
    • APAC
  • Market drivers
    • Need to support industrial 4.0 revolution
    • Increase in automation
    • Cost reduction and efficiency
    • Accelerates time to market
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Issues pertaining to IP ownership
    • Lack of control over product development
    • Ineffective management of product development life cycle
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Emergence of artificial intelligence and machine learning
    • Evolution of industrial IoT
    • Increasing adoption of software-defined framework
    • Rise in engineering analytics
      • Table EA value chain
    • Growing trend of engaging clients with consulting services
    • Nearshoring and growing captive operations in emerging countries
  • Vendor landscape
    • Competitive scenario
      • Table Competitive factors among vendors
    • Other prominent vendors
      • Table Other prominent vendors
  • Key vendor profile
    • HCL Technologies
      • Table Recent developments
    • Infosys
      • Table Recent developments
    • TCS
      • Table Recent developments
    • Tech Mahindra
      • Table Recent developments
    • Wipro
      • Table Wipro: Business segmentation
      • Table Recent developments
  • Appendix
    • List of abbreviations
  • Explore Technavio

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