What is engineering services outsourcing?
Engineering Services Outsourcing is contracting out engineering services to a third-party provider. This can include anything from design and development to project management and quality assurance. The main reasons companies choose to outsource their engineering services are to save money and increase efficiency. By outsourcing to a company that specializes in engineering, businesses can get the services they need without having to invest in hiring and training their staff. In addition, outsourcing can help businesses free up internal resources so they can focus on their core competencies.
The global Engineering Services Outsourcing (ESO) market is projected to be USD 226.97 bn in 2018 to reach USD 1969.88 bn by 2028 at a CAGR of 24.1%. The increase in demand for engineering services outsourcing can be attributed to the growing need for cost-effective and time-saving solutions, as well as the shortage of engineering talent globally.
Figure: The below figure indicated a graphical representation of the report along with market value (USD In Mn) & Y-O-Y growth rate:
One of the main factors driving acceptance of engineering services outsourcing (ESO), is the growing alliance between Engineering Service Providers, (ESP), and Original Equipment Manufacturers. Global R&D developments, rising demand for the incorporation of the most problematic technologies in product offerings, and the need to reduce product life cycles and cut costs are all expected to drive market growth. ESO has always grown in response to the passion of customers to outsource various services to cut costs.
The Asia-Pacific region is expected to be the fastest-growing market for engineering services outsourcing, due to the growing number of small and medium enterprises in the region. In addition, the region has a large pool of skilled engineers, which is expected to drive the growth of the engineering services outsourcing market in the Asia-Pacific region.
About engineering services outsourcing:
There are some risks associated with outsourcing engineering services, such as loss of control over the quality of the work or the potential for miscommunication. However, these risks can be mitigated by carefully selecting a reputable outsourcing partner and setting clear expectations from the outset. There are many benefits to outsourcing engineering services. Perhaps the most obvious benefit is that it can save company money. When a company outsources engineering services, it can take advantage of lower labor costs in other countries. This can be significant savings for companies, particularly if they outsource to countries with low wages but high-quality workers.
In addition to saving money, outsourcing engineering services can also help companies to improve the quality of their products and services. This is because outsourcing gives companies access to a larger pool of talent. By working with engineers from around the world, companies can ensure that they are using the best possible techniques and technologies for their products and services. Finally, outsourcing engineering services can help companies to become more agile and responsive to change. This is because outsourced engineers can quickly adapt to new demands or changes in product specifications.
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Top engineering services outsourcing companies
- Tata Consultancy Services Limited
- Tech Mahindra Limited
- QuEST Global Services. Ltd.
- GlobalLogic Inc.
- Deaton Engineering
- Wipro Limited
- Cyient Limited
- Luxoft Holding Inc.
- EPAM Systems Inc.
- Infosys Limited
- HCL Technologies Limited
Key Market Segments
Drafting and 3D Modeling
Product Design and Testing
Plant Design/Process Engineering
Based on region, the market is segmented into North America, Europe, APAC, South America, and Middle East Africa. APAC accounts for the majority share in the global Engineering Services Outsourcing (ESO) market.
Frequently Asked Questions About This Report
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Outsourcing engineering services can be a great way for companies to save money. But it’s important to do your homework before you make the switch. Make sure you understand the cost savings that are available and how your company can take advantage of them.