With growing advancements, engineers are constantly integrating IT with product designing. Also, the companies are experiencing the extensive requirements to boost their engineering capability along with keeping pace with the increasing consumer demand for innovative products, ranging from computers to hybrid cars. But, such growing demand for innovative products is creating several challenges. Thus, companies are augmenting their existing engineering capabilities with outsourcing services to fulfill the surging requirements, and thereby it is referred to as engineering service outsourcing.
The growing collaborations with original equipment manufacturers (OEMs) and engineering service providers are fuelling the growth of the global engineering services outsourcing (ESO) market. Moreover, the increasing research and development activities along with the growing demand for integrating advanced technology in product designs and the need to cut short the product life cycles are posing a huge demand for engineering outsourcing services. Also, there is immense pressure to lower the cost of the final products. The ESO model is constantly working towards delivering smart solutions to clients. The market is also witnessing a massive paradigm shift from core engineered services to embedded engineering solutions, including the internet of things, automation, analytics, and several others. Thereby, it is likely to significantly pave the way for IT integrated product-as-a-service engineered solutions that can schedule maintenance and prevent unexpected outages automatically in advance. All these emerging scenarios will vigorously bolster the growth of the global market in the forthcoming years.
The global engineering services outsourcing (ESO) market can be segmented into application, location, services, and region.
By application, the market can be segmented into telecom, healthcare, semiconductors, consumer, electronics, industrial, automotive, aerospace, and others. The industrial segment accounts for the largest share in the global engineering services outsourcing (ESO) market due to the growing digitalization all across the globe.
By location, the market can be segmented into offshore and onshore.
By service, the market can be segmented into testing, system integration, prototyping, designing, and others.
Asia Pacific accounts for the largest share in the global engineering services outsourcing (ESO) market due to the fact that it is a hub for industrial goods manufacturing. Also, the presence of cost-effective hiring services along with highly skilled energy engineering professionals is likely to further fuel the growth of the regional market in the forthcoming years.
Some of the significant players in the global engineering services outsourcing (ESO) market are International Business Machines Corporation, HCL Technologies Limited, AVL List GmbH, ASAP Holding GmbH, Capgemini SE, Altair Engineering, Inc., and ALTEN SA. To cite, Akka acquired CTP SYSTEM SRL in July 2017. Both the companies have expertise in the medical science and pharmaceuticals sectors. The acquisition is likely to strengthen the portfolio and business position of Akka in the healthcare sector.