LONDON--(BUSINESS WIRE)--The global engineering services outsourcing market is expected to post a CAGR of almost 23% during the period 2020-2024, according to the latest market research report by Technavio. Request a free sample report
Factors such as rising competition in the market and increasing consumer demand for innovative products are compelling enterprises to continuously upgrade their engineering capabilities. This requires a significant amount of time and resources, which could pose a challenge to the growth of the company. Hence, companies are increasingly adopting outsourced engineering services and solutions to reduce product development time and the time to market. This helps companies gain faster access to emerging markets and establish their presence before their competitors. This is one of the crucial factors driving the growth of the global engineering services outsourcing market.
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As per Technavio, the cost savings from lower labor wages will have a positive impact on the market and contribute to its growth significantly over the forecast period. This research report also analyzes other important trends and market drivers that will affect market growth over 2020-2024.
Global Engineering Services Outsourcing Market: Cost Savings from Lower Labor Wages
Outsourcing engineering services help companies reduce costs associated with labor, infrastructure, operations, and staffing. It also allows companies to scale operations on-demand as per their operational requirements. Hence, organizations in developed and industrialized countries such as the US, the UK, Germany, Denmark, and France outsource their engineering work to low-cost labor countries such as India, Malaysia, Thailand, and Bulgaria. These factors are crucial in driving the growth of the global engineering services outsourcing market.
“Increasing digital transformation in organizations and collaborative co-innovation partnership with outsourcing firms will further boost market growth during the forecast period”, says a senior analyst at Technavio.
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Global Engineering Services Outsourcing Market: Segmentation Analysis
This market report segments the global engineering services outsourcing market by end-users (automotive, consumer electronics, telecom, semiconductor, aerospace, medical devices, construction, and others), sourcing (offshore and onshore), and geography (APAC, Europe, MEA, North America, and South America).
The North American region led the market in 2019, followed by APAC, Europe, South America, and MEA respectively. During the forecast period, the North American region is expected to maintain its dominance over the market. This is due to a large number of ESO agreements signed by US-based companies with service providers in low-cost countries.
Technavio’s sample reports are free of charge and contain multiple sections of the report, such as the market size and forecast, drivers, challenges, trends, and more.
Some of the key topics covered in the report include:
- Market ecosystem
- Market characteristics
- Market segmentation analysis
- Market definition
- Market size and forecast
Five Forces Analysis
- Geographic comparison
- Key leading countries
- Landscape disruption
- Competitive scenario
- Vendors covered
- Vendor classification
- Market positioning of vendors
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