In addition, several factors including improvement in processes, enhanced efficiency, reduced time-to-market and cost advantage may also spur engineering services outsourcing market growth over the next few years. Aerospace and automotive OEMs (Original Equipment Manufacturers) emphasize on increasing and strengthening associations and tie-ups with engineering services outsourcing vendors due to the need to focus on crucial R&D activities. Security threats and issues pertaining to confidentiality that primarily revolve around intellectual property (IP) may pose a challenge to engineering services outsourcing market growth.
Several industries including telecom, pharmaceuticals, semiconductors, consumer electronics, automotive, construction and aerospace outsource their specific engineering tasks. Engineering services outsourcing vendors cater to diverse requirements of the aforementioned industries, which thereby drives the market growth. Aero engines design, aero systems & interiors, aero structures design, avionics and manufacturing are a few solutions provided by ESO vendors to the aerospace companies.
Browse Detailed Report with TOC at:
Consumer electronics is expected to emerge as a fast growing end-use segment, which can be attributed to reduction in product life cycles and growing need for faster product innovation. ESO demand across the pharmaceutical sector due to availability of several solutions such as ideation, prototyping, packaging, value analysis and preclinical testing is also expected to positively impact engineering outsourcing services market growth.
In 2013, engineering outsourcing services demand in the telecom industry accounted for over 20% of the overall market share. Telecom service providers implement operations and business support systems (BSS) to ensure smooth business operations, which makes significant back-end expertise and equipment a primary requirement, thus driving the adoption of ESO in systems.
Communication Services Related Reports:
Third Party Logistics (3PL) Market:
Intelligent Virtual Assistant Market:
Solutions offered by ESO vendors for the telecom industry include design, network testing, implementation, deployment and support of Geographic Information Systems (GIS) systems, cloud engineering services, network provisioning, product lifecycle management (PLM) and value added services.
In terms of revenue, Asia Pacific emerged as the market leader in 2013, and contributed over 50% to the overall market. The region is also expected to witness the highest growth over the forecast period. Emerging local demand, large talent pool, cost arbitrage and strong manufacturing base in China and India have significantly driven engineering services outsourcing market growth in this region.
Request a sample copy of this Report at:
Europe is also expected to witness considerable growth due to an inclination among several European firms to outsource engineering services within the Western European nations or the same country so as to ensure regulatory compliance. The regional market is expected to grow at an estimated CAGR of 25% over the next six years, which in turn will drive engineering services outsourcing market growth.
For More Detailed Report, Visit:
Hexa Research Inc. is a market research and consulting organization, offering industry reports, custom research and consulting services to a host of key industries across the globe. We offer comprehensive business intelligence in the form of industry reports which help our clients obtain clarity about their business environment and enable them to undertake strategic growth initiatives.
Company Name: Hexa Research
Contact Person: Michelle Thoras and Ryan Shaw
Address:Felton Office Plaza, 6265 Highway 9
Country: United States