Global Engineering Services Outsourcing Market 2018-2022| 27% CAGR Projection Over the Next Five Years| Technavio
LONDON--(BUSINESS WIRE)--Aug 2, 2018--The global engineering services outsourcing market is expected to post a CAGR of over 27% during the period 2018-2022, according to the latest market research report by .
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Technavio has published a new market research report on the global engineering services outsourcing market from 2018-2022. (Graphic: Business Wire)
A key factor driving the growth of the market is cost savings from lower labor wages. The expansion of the global economy has resulted in labor arbitrage, which focuses on the transference of business processes to less-expensive locations. Organizations gain advantage from labor arbitrage through the maintenance of lean workforce and spending less on employee hiring and retention. Organizations that have a shortage of labor also use outsourced engineering services that give them easy and direct access to skilled talent and advanced technologies in other countries. Moreover, outsourcing also allows companies to scale operations on-demand along with their operational requirements.
This market research report on the also provides an analysis of the most important trends expected to impact the market outlook during the forecast period. Technavio classifies an emerging trend as a major factor that has the potential to significantly impact the market and contribute to its growth or decline.
In this report, Technavio highlights the collaborative co-innovation partnership with outsourcing firms as one of the key emerging trends in the global engineering services outsourcing market:
Global engineering services outsourcing market: the collaborative co-innovation partnership with outsourcing firms
Collaborative partnership in outsourcing calls for risk sharing and value sharing, whereas co-innovation refers to the two parties managing the flow of knowledge across organizational boundaries and jointly develop new solutions. Currently, several partnerships are emerging even though the risks and challenges of outsourcing are deepening each year. Outsourcing service providers are regarded as integrated strategic partners of their clients’ supply chains. The customer company itself is invested in the functioning of its outsourcing partner and may be involved in the continuous monitoring of offshore locations, to ensure optimum quality of process and management.
“Digital transformation in organizations along with collaborations is helping to implement cost saving which is a key factor that is driving the growth of the ESO market,” says a senior analyst at Technavio for research on the ITO and BPO sector.
Global engineering services outsourcing market: Segmentation analysis
This market research report segments the global engineering services outsourcing market by end-user (automotive, consumer electronics, telecom, semiconductor, and aerospace).
The automotive segment led the market in 2017 with a market share close to 28%, followed by consumer electronics and telecom, respectively. The automotive, consumer electronics, and the telecom industry dominated the global ESO demand because of the short product lifecycle, which demands continuous design upgrade, innovations, and safety developments.
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 LandscapeMarket ecosystem Market characteristics Market segmentation analysis
Market SizingMarket sizing Market size and forecast
Five Forces Analysis
Geographical SegmentationRegional comparison Key leading countries
Vendor LandscapeVendors covered Vendor classification Market positioning of vendors Competitive scenario
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