This market research report includes a detailed segmentation of the engineering services outsourcing (ESO) market in APAC by end-users (automotive, telecom, consumer electronic appliances, construction, semiconductors, pharma, OEMs, and others). The key vendors analyzed in this report include HCL, IBM, Infosys, and Wipro.
Technavio’s market research analysts estimate ESO market in APAC, to grow at a CAGR of 26% between 2016 and 2020. ESO is a new trend in the APAC, and a dynamic and fast-evolving area of the global outsourcing industry. The growth of the ESO market in APAC is driven by the need to reduce time-to-market. ESO solutions enable enterprises to outsource engineering tasks to emerging countries such as India and China, which provide skilled labor at low costs. Such outsourcing also helps to reduce product development cycles.
The new market research report from Technavio provides a breakdown and analysis of the ESO segments by technology.
“APAC is witnessing rising demand for data engineering in the machine engineering and automation domains. Majority of the spending is invested in developing engineering analytics (EA) infrastructure and system integration of EA components. EA derives meaningful insights from data collected by physical machines to design, produce, and deliver new products. The EA value chain covers all components from sensors that generate information and networks that transmit information to software that processes information. Currently, the major players operating in the market are based in India like the Tata group of companies,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
The consumer electronics segment is the fastest growing industry catering to services provided by ESO vendors. Production of most consumer electronics devices requires engineering services at some point. ESO solutions include embedded software development, design and implementation, development and testing, system level architecture, and product development services
Outsourced services in consumer electronics industry
Source: Technavio, 2016
The key vendors in the ESO market in APAC include HCL, IBM, Infosys, and Wipro. While competing at the global level, companies across different industry verticals seek cost-effective solutions to increase their profit margins. Over the next four years, many global enterprises in this region will look to improve their capabilities by collaborating with IT services firms that specialize in engineering design. ESO vendors, particularly in India and China, are expected to align their current capabilities with new and advanced technologies to leverage this market opportunity.
A more detailed analysis is available in the Technavio report, ESO Market in APAC Region 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
Engineering Services Outsourcing (ESO) Market in India 2015-2019
