Global Engineering Services Outsourcing Market will grow by USD 207.85 bn during 2020-2024, according to Technavio

LONDON–The global engineering services outsourcing market size is poised to grow by USD 207.85 billion during 2020-2024, progressing at a CAGR of almost 23% throughout the forecast period, according to the latest report by Technavio. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment. The report also provides the market impact and new opportunities created due to the COVID-19 pandemic. Download a Free Sample of REPORT with COVID-19 Crisis and Recovery Analysis.

The cost savings from lower labor wages will be a significant factor driving the growth of the engineering services outsourcing market. The high labor cost in developed or industrialized countries is driving organizations in these countries to outsource their engineering operations to less-expensive locations. The outsourcing of engineering services will enable organizations to delegate work to a low-cost workforce and minimize costs associated with the maintenance of additional infrastructure, office space, operations, and staffing. Engineering services outsourcing gives easy and direct access to skilled talent and advanced technologies in other countries, which makes it particularly beneficial for organizations facing a shortage of labor. Moreover, outsourcing allows companies to scale operations on-demand and minimize expenses related to employee hiring and retention. These advantages are expected to boost the outsourcing of engineering services from high-cost labor countries, such as the US, Denmark, France, Germany, and the UK, to low-cost labor countries such as India, Malaysia, Thailand, and Bulgaria.

Report Highlights:

• The major engineering services outsourcing market growth came from offshore segment. The cost of labor is very high in developed countries, such as the US and countries in Europe. Hence, organizations of these countries generally prefer outsourcing their engineering services to offshore destinations, such as India, Indonesia, China, Malaysia, Brazil, Bulgaria, and Mexico, which can provide favorable IP environment and highly skilled workforce at low cost. The emergence of new outsourcing destinations, such as the Philippines, Brazil, and China, providing better opportunities for customer organizations, will further boost the popularity of offshore engineering services outsourcing. Market growth in this segment will be faster than the growth of the market in the onshore segment.
• North America is one of the largest markets for engineering services outsourcing, and the region will offer several growth opportunities to market vendors during the forecast period. The increasing demand from the automotive sector will be a significant factor that will contribute to engineering services outsourcing market growth in this region. The US is an essential market for engineering services outsourcing in North America. Market growth in this region will be faster than the growth of the market in other geographies.
• The global engineering services outsourcing market is fragmented. Accenture, Altair Engineering, Inc., Alten GmbH, Aricent Group, HCL Technologies, Infosys, RLE International Group, TCS, Tech Mahindra Ltd., and Wipro. are some of the major market participants. To help clients improve their market position, this engineering services outsourcing market forecast report provides a detailed analysis of the market leaders.
• As the business impact of COVID-19 spreads, the Global engineering services outsourcing market 2020-2024 is expected to have Neutral and At par growth. As the pandemic spreads in some regions and plateaus in other regions, we reevaluate the impact on businesses and update our report forecasts.

Significant Time and Resources Required for Product Development will be a Key Market Trend

Companies are increasingly focusing on the continuous upgradation of their engineering capabilities to reduce the time to market and gain a significant advantage over their competitors in terms of pricing and brand name. The significant time and resources required for product development is driving companies to adopt outsourced engineering services and solutions. The engineering solutions provided by market vendors help clients to maintain product standards and service quality and accelerate time to market. Engineering services outsourcing provides faster access to emerging markets and helps companies establish their presence ahead of their competitors. The reduced time to market and improved access to emerging markets will positively impact engineering services outsourcing market growth during the forecast period.

Engineering Services Outsourcing Market 2020-2024: Key Highlights

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will assist engineering services outsourcing market growth during the next five years
• Estimation of the engineering services outsourcing market size and its contribution to the parent market
• Predictions on upcoming trends and changes in consumer behavior
• The growth of the engineering services outsourcing market
• Analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of engineering services outsourcing market vendors