The Global engineering services outsourcing (ESO)
market is expected to reach USD 1.49 trillion by 2025, according to a
new report by Grand View Research, Inc. ESO providers play a crucial role in
providing mechanical, technical, and software support to their clients. Due to
the growing complexity of product designing, prototyping, visual designing and
engineering, and Product Lifecycle Management (PLM), the role of ESO vendors
has become crucial to OEMs.
The engineering services
outsourcing business was primarily aggregated under the Information Technology
(IT) or the Business Process Outsourcing (BPO) industry. However, due to rapid
technological advancement and growing demand, the ESO segment has evolved to
expand its operation in the telecom, aerospace, automotive, healthcare, and
other major verticals by spending heavily on product development and offering
engineering expertise across various industries.
Multinationals based in the U.S.,
UK, Germany, France, and Japan among other developed nations are outsourcing services
to countries such as India which provide skillful resources at lower prices.
The threat of Intellectual
Property (IP) confidentiality breach is a barrier to the growing ESO demand.
Companies have to be very vigilant to avoid IP theft, especially in a few
offshore locations where prosecuting firms who allegedly misuse patents and
confidential data is perceived as a difficult task due to the prevalent legal
enforcements. IP theft results in significant losses for the business. As a
result, the companies may not wish to share confidential data with engineering
service providers.
Browse full research report on Global
Engineering Services Outsourcing Market: http://www.grandviewresearch.com/industry-analysis/engineering-services-outsourcing-market
Further key findings from the report suggest:
- Growing at a CAGR of around 30% over the forecast period, the offshore ESO segment is expected to account for a greater revenue share of the total market by 2025
- In 2016, the estimated size of the onshore ESO segment was around USD 70 billion
- The aerospace, consumer electronics, and telecom ESO segments are expected to witness a robust growth
- The aerospace ESO segment is expected to account for over 13% of the total revenue share by 2025 and is projected to be the fastest-growing over the forecast period
- Asia Pacific accounted for the largest market share of the global ESO industry in 2016; China, India, Vietnam, and the Philippines were the most sought after global outsourcing destinations
- The key industry participants include EPAM Systems, Inc., GlobalLogic, Infosys Limited, HCL Technologies Limited, Luxoft, QuEST Global Services Pte. Ltd., Tech Mahindra Limited, Wipro Limited, and Tata Consultancy Services Limited
Browse more reports of this category by Grand View Research: http://www.grandviewresearch.com/industry/communication-services
Grand View Research has segmented the market for Engineering
Services Outsourcing (ESO) by application, location, and region.
ESO Application Outlook (Revenue, USD Billion; 2014 -
2025)
- Aerospace
- Automotive
- Construction
- Consumer Electronics
- Semiconductor
- Pharmaceutical
- Telecom
- Others
ESO Location Outlook (Revenue, USD Billion; 2014 - 2025)
- Onshore
- Offshore
ESO Regional Outlook (Revenue, USD Billion; 2014 - 2025)
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- France
- Germany
- Asia Pacific
- China
- India
- Japan
- South America
- Brazil
- Middle East & Africa
About Grand View Research
Grand View Research, Inc. is a
U.S. based market research and consulting company, registered in the State of
California and headquartered in San Francisco. The company provides
syndicated research reports, customized research reports, and consulting
services. To help clients make informed business decisions, we offer market
intelligence studies ensuring relevant and fact-based research across a range
of industries, from technology to chemicals, materials and healthcare.
For more information: www.grandviewresearch.com
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