This market study includes a comprehensive analysis of the key drivers, challenges, and upcoming trends that influence market growth. It also presents a detailed segmentation of the engineering services outsourcing market in the US by end users (telecom, automotive, aerospace, consumer electronics, and industrial). The leading vendors analyzed in this market research are HCL Technologies, Infosys, KPIT, Quest, Tata Elxsi, TCS, and Tech Mahindra.
Technavio’s market research analysts estimate the ESO market in the US, to grow at a CAGR of 22% between 2016 and 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.
The new market research report from Technavio provides a breakdown and analysis of the ESO segments by technology.
“The rising need for pilot execution is propelling 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,” says Amit Sharma, Lead Analyst, ICT, Technavio Research
Technavio’s market research analysts estimate 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.
The leading vendors in the ESO market in the US include HCL Technologies, Infosys, KPIT, Quest, Tata Elxsi, TCS, and Tech Mahindra. This market 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.
A more detailed analysis is available in the Technavio report, Engineering Services Outsourcing Market in US 2016-2020.
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