Global R&D Outsourcing Services Market 2017-2021
About R&D Outsourcing Services
R&D outsourcing refers to outsourcing non-physical engineering R&D tasks such as designing, simulation, and consultation to specialized vendors. It involves factors such as improvement in different processes, efficiency enhancement, cost advantage, and lowered time-to-market for products. Firms outsourcing their engineering R&D services consider these factors prior to adopting the service.
Technavio’s analysts forecast the global R&D outsourcing services market to grow at a CAGR of 8.31% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global R&D outsourcing services market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global R&D Outsourcing Services Market 2017-2021
Technavio recognizes the following companies as the key players in the global R&D outsourcing services market: HCL Technologies, Infosys, TCS, Tech Mahindra, and Wipro.
Other Prominent Vendors in the market are: Aricent, GlobalLogic, Cyient, Luxoft, Mindtree, QuEST Global Services, and Tata Elxsi.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is rise in engineering analytics. EA derives meaningful insights from data collected by physical machines to design, produce, and deliver new products. The EA value chain covers all components from sensors that generate information and networks that transmit information to software that processes information.”
According to the report, one driver in the market is cost reduction and efficiency. Labor arbitrage is a result of globalization, which shifts business processes to less expensive locations. Labor arbitrage is regarded as one of the prospective benefits of outsourcing processes. Firms that adopt the outsourcing strategy need not invest in resources or worry about handling their limited available resources. Outsourcing of R&D processes helps them gain access to skilled talent and advanced analytics technologies in another country with the maintenance of a lean workforce.
Further, the report states that one challenge in the market is lack of effective communication between client and vendor. Vendors should effectively communicate with their client to deliver the service in a timely manner. Technical communication in outsourcing contract between client and vendor is required to reduce outsourcing risk and build trust. IT outsourcing projects could not be successfully implemented if vendors fail to provide required services. Communication is required at various stages of IT service delivery system to avoid system failures and provide backup and recovery facility.
HCL Technologies, Infosys, TCS, Tech Mahindra, Wipro, Aricent, GlobalLogic, Cyient, Luxoft, Mindtree, QuEST Global Services, and Tata Elxsi.
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