NEW YORK, Jan. 13, 2022 /PRNewswire/ --
Engineering Services Outsourcing (ESO) Market Facts at a Glance-
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According to the recent market study by Technavio, the Engineering Services Outsourcing Market by Sourcing, End-user, and Geography - Forecast and Analysis 2021-2025 is expected to increase by USD 187.99 billion from 2021 to 2025, with an accelerated CAGR of almost 23%. The report provides a detailed analysis of drivers & opportunities, top winning strategies, competitive scenario, future market trends, market size & estimations, and major investment pockets.
North America will register the highest growth rate of 41% among the other regions. The US is a key market for engineering services outsourcing in North America. Market growth in North America will be faster than the growth of the market in other regions.
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Vendor Insights -
The Engineering services outsourcing (ESO) Market is fragmented, and the vendors are deploying growth strategies such as focusing on product delivery through multiple distribution channels to compete in the market.
Accenture Plc- In October 2020, the company appointed Bhaskar Ghosh as Chief Strategy Officer.
Capgemini Services SAS- In December 2020, the company collaborated with AWS to extend its Digital Cloud Platform.
Altair Engineering Inc- In December 2020, the company appointed Matthew Brown as Chief Financial Officer.
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Regional Market Outlook
In 2020, North America will continue to be the biggest consumer of outsourced engineering services. This is due to the enormous number of ESO agreements signed by US-based corporations with low-cost country service providers. The United States is the single largest source of outsourcing demand both domestically and internationally. For cost and labor arbitrage, US-based corporations have used the engineering assistance supplied by offshore and nearshore outsourcing ESPs. The demand for IT services in the United States is skyrocketing as industry 4.0 and digitalization take hold. The digital platform has evolved into a foundation upon which businesses can build new products and services. The huge number of ESO agreements signed by US-based enterprises with service providers in low-cost nations would help the ESO market grow in North America over the forecast period.
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Latest Drivers & Trends Driving the Market-
Because of the high cost of labor in developed or industrialized countries, companies are outsourcing their engineering processes to less expensive places. Outsourcing engineering services allow businesses to delegate work to a low-cost workforce while reducing costs associated with extra infrastructure, office space, operations, and labor. These benefits are predicted to drive engineering services outsourcing from high-cost labor countries like the United States, Denmark, France, Germany, and the United Kingdom to low-cost labor countries like India, Malaysia, Thailand, and Bulgaria.
Many businesses are successfully managing their outsourcing agreements thanks to the considerable collaboration and co-innovation. In such cases, outsourcing service providers are viewed as integrated strategic partners in their clients' supply chains. The customer firm is committed to the success of its outsourcing partner and may be involved in the ongoing monitoring of offshore sites to maintain the highest possible process and management quality. For example, Airtel, an Indian telecom firm, engages heavily with its outsourced partners, such as IBM, Ericsson, Nokia, and Siemens, under contracts based on shared risk and reward agreements. Airtel's market development and performance are critical to these outsourcing firms' capacity to generate additional income.
Find additional information about various other market Drivers & Trends mentioned in our FREE sample report.
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Engineering Services Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2020 |
Forecast period |
2021-2025 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23% |
Market growth 2021-2025 |
$ 187.99 billion |
Market structure |
Fragmented |
YoY growth (%) |
21.57 |
Regional analysis |
North America, APAC, Europe, South America, and MEA |
Performing market contribution |
North America at 41% |
Key consumer countries |
US, China, India, Germany, and Poland |
Competitive landscape |
Leading companies, competitive strategies, consumer engagement scope |
Companies profiled |
Accenture Plc, Altair Engineering Inc., ALTEN Group, Capgemini Services SAS, HCL Technologies Ltd., Infosys Ltd., RLE INTERNATIONAL Produktentwicklungsgesellschaft mbH, Tata Consultancy Services Ltd., Tech Mahindra Ltd., and Wipro Ltd. |
Market Dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, market condition analysis for forecast period, |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contact
Technavio Research
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Website: www.technavio.com/
SOURCE Technavio
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