Engineering Services Outsourcing Market In US size is set to grow by USD 93984.53 mn from 2023-2027,Cost savings from lower labor wages boost the market- Technavio

NEW YORK, March 22, 2024 /PRNewswire/ -- The global engineering services outsourcing market in US size is estimated to grow by USD 93984.53 mn from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of almost 23.34% during the forecast period. The Engineering Services Outsourcing Market in the US thrives on cost efficiencies from low-cost workforces and infrastructure savings. Key drivers include freight management, grade assurance, IP protection, technology implementation, and access to skilled talent through outsourcing. Innovation, technological advancements in AI, digital twin simulations, and automation further fuel market growth. Organizations leverage outsourcing for labor arbitrage, maintaining lean workforces and reducing hiring and retention costs.

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Research Analysis

The Engineering Services Outsourcing Market in the US is experiencing significant growth, driven by advancements in R&D and the increasing demand for embedded engineering solutions. Companies are turning to outsourcing to stay competitive and innovate faster. This trend is particularly prominent in the areas of analytics, robotics, artificial intelligence (AI), and machine learning (ML). Outsourcing these specialized services allows businesses to access expertise and resources they may not have in-house, enabling them to develop and implement cutting-edge technologies more efficiently. As AI and ML continue to revolutionize industries, the Engineering Services Outsourcing Market in the US is poised for continued expansion.

Drivers

The Engineering Services Outsourcing Market in the US has experienced significant growth, driven by cost efficiencies and labor arbitrage. By delegating work to low-cost workforces, organizations save on infrastructure, office space, operations, and staffing costs. The expanding US economy facilitates this trend, enabling businesses to maintain lean workforces and reduce employee hiring and retention expenses. Additionally, organizations facing labor shortages can access skilled talent and advanced technologies through outsourced engineering services in other countries.

Challenges

The Engineering Services Outsourcing (ESO) market in the US is experiencing significant growth due to the country's adoption of advanced technologies like AI, ML, blockchain, and quantum computing. The complexity and diversity of these technologies necessitate a flexible labor pool with specialized competencies, which is a challenge for companies to acquire domestically. In response, ESO enables employers to access a global and diversified talent base at a cost-effective price point. This trend is driven by the increasing demand for cutting-edge skillsets to implement IT solutions and stay competitive in various industries.

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Market Landscape

The Engineering Services Outsourcing Market in the US is a segment of the global IT consulting and other services market, which encompasses companies providing IT consulting, information management, and various technology-related services. Technavio calculates the market size based on the combined revenue of these companies, with engineering services outsourcing being a specific offering within this broader category. This market involves the transfer of engineering tasks to external service providers, contributing to cost savings, increased efficiency, and access to specialized expertise for businesses in the US and globally.

Research Analyst Overview

The Engineering Services Outsourcing Market in the US continues to expand, with an increasing number of companies opting for outsourcing solutions to streamline their operations and reduce costs. Machines, apparatus, and mechanisms are key components of engineering services, with MLC (Machining, Leasing, Consulting) firms playing a pivotal role in providing these services. IT solutions are integral to engineering outsourcing, with projects requiring expertise in automation, testing, and implementation. New plays enter the market regularly, bringing innovative approaches and technologies to the table. Cybersecurity is a critical concern, as is ensuring that data is handled securely and confidentially. The industry is expected to experience significant growth in the coming years, with India and other countries emerging as major players due to their cost-effective labor and skilled workforce.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Company Landscape
12 Company Analysis
13 Appendix

About US

Technavio is a leading global technology research and advisory company. Their research and analysis focus 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 consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. 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

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SOURCE Technavio