The Challenge is Sourcing Authentic Services
Date: Monday , December 14, 2015
Witnessing substantial growth in recent times, Engineering Services Outsourcing (ESO) Market has evolved to encompass a broad range of new product development, value-engineering and engineering consulting functions. The growth trend is expected to accelerate in the coming years as offshore options open its door further, particularly in India. Of late, several engineering engagements are being recast as win-win partnerships to leverage collaborative growth opportunities, as the focus has shifted from cost and labor arbitrage being the primary drivers. We see a lot of OEMs and ISVs partnering with engineering service providers to accelerate time to market, extend product lifecycles, develop platforms and optimize R&D operations.
The global spend on Engineering Services, which was around $930 billion in 2012, is expected to reach a whopping $1.4 trillion by 2020 - a 50 percent growth in less than a decade, predict various market surveys. Outsourcable spend on engineering services stood at around $325 billion in 2012, with offshored spend comprised around $100 billion. Total outsourcing spend on engineering services is estimated to be growing 3-4 times the rate of total spend on engineering - an indicator of growing propensity to outsource engineering services.
On the other hand, TechNavio\'s analysts forecast the Global Engineering Services market will grow at a CAGR of 3.57 percent over the period 2013-2018, with heavy infrastructure industry, industrial and resource asset management enterprises and the non-residential construction industry are the major end-users in the market. While the potential seems huge for the industry, large numbers of players have entered the market, but the irony is their ability to offer authentic services. Hence we bring to you \'20 Most Promising Engineering Services Companies\' - a list of Engineering Services players who have carved a niche for themselves within the industry.
Along with this, we bring to you the story of \'SD Squared Labs: Built for the Cloud\' - a newly born company that simplifies Apps and Software development through cloud offerings. Under the strong leadership of Sachin Dev Duggal and Saurabh, the company is growing by leaps and bounds each day.