Engineering Services Outsourcing Market in the US 2016-2020
Outlook of the engineering services outsourcing market in the US
Technavio’s market research analyst estimates the engineering services outsourcing (ESO) market in the US to grow at an impressive CAGR of over 22% by 2020. The ability of outsourced services to reduce operating costs and to optimize return on investment will spur the prospects for growth in this market during the forecast period. With the help of ESO services, enterprises can get support for a variety of capabilities, which includes working with the company's supply chain, designing manufactured parts, or developing aftermarket support for technical and engineering documentation. Furthermore, the capability of ESO to boost the product development processes is a critical factor that will enhance this market’s growth potential until 2020.
The rising need for pilot execution is a key driver for the growth of this market. Since the US considers outsourcing as a possible route for pilot execution, it offers companies the levy of flexible resource capacity based on project needs and market dynamics. Recently, it has been observed that enterprises with low experience are setting up captive centers in low-cost countries to outsource pilot execution. This helps to eliminate the need for large upfront investment, which in turn propels market growth during the forecast period.
End-user segmentation of the ESO market in the US
- Consumer electronics
In this market research, analysts have estimated the telecom sector to lead the market for ESO services in the US during the forecast period. At present, this industry accounts for a market share of more than 18% and is envisaged to bolster its hold over the market by 2020 owing to the augmented need for cost reduction, faster time-to-market, and market competition in this segment. Furthermore, factors such as the rising need to improve efficiencies and customer services, boost profit margins, enhance employee productivity, and streamline and optimize business operations will augment the adoption of ESO services in this market segment during the predicted period.
Competitive landscape and key vendors
The ESO market in the US has a high growth potential as only a small portion of the existing engineering service needs of the US market are being outsourced. The vendors that focus on co-innovating domain intensive technology solutions for the manufacturing, automotive, and energy and utilities sectors to help customers become integrated, efficient, and innovative are anticipated to gain maximum market prominence during the estimated period.
Top vendors in this market are -
- Tata Elxsi
- Tech Mahindra
Other prominent vendors analyzed in this market analysis are Altran, Aricent Group, Atos Origin, Beyondsoft, Capgemini, Clasoft Labs, Clasoft Labs India, Computer Sciences Corporation, Cybage Software, Global Logic, GlobalLogic, HP, iGate, Infotech Enterprises, L&T, Luxoft, Mindfire Solutions, MindTree, Neilsoft, Sonata Software, Symphony, Vanceinfo Technologies, Xchanging, and Wipro.
Key questions answered in the report include -
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the ESO market in the US?
- What are the key market trends impacting the growth of the ESO market in the US?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the vendors in the ESO market in the US?
- What are the key outcomes of the five forces analysis of the ESO market in the US?
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