Behind The Thriving Engineering Services Outsourcing Market Are Striving Service Providers

Engineering services outsourcing market is thriving now, thanks to the progressive engineering service providers which are striving hard to take engineering services outsourcing to the next level. We observe five key supply-side drivers transforming engineering services outsourcing market:

1. Value Engineering and Value Analysis Maturity. Though common in enterprises developing products this hadn’t been a differentiator of service providers, but today engineering outsourcers have developed capabilities to deliver significantly better value outcomes and can offer guaranteed year-on-year savings based contracts.
    
2. End-to-End Product Design Capability. Engineering service providers have evolved their capabilities from component or system design to end-to-end product design. Now an enterprise which wants to enter a new market segment can partner with engineering service providers, that can not only deliver complete new product design but that can even collaborate with manufacturing partners for additional benefits.
    
3. IoT/ M2M and Engineering Analytics Capability. Engineering service providers are augmenting their capabilities and offerings in IoT/M2M as well as engineering analytics. Now they offer services of data analytics of field performance data for predictive maintenance and use it for the new product design. This area is becoming a big differentiator and catalyst for the new engineering services deals.
    
4. Product Design Efficiency. Can the creative process of design be made efficient? This is an old debate and enterprises often manage their internal R&D and design projects against estimated cost and time. Now we see engineering service providers leveraging their learning curve, knowledge base, experience across customers, and automation skills for delivering significant efficiency in the product design.
    
5. Engineering Services Labs and Infrastructure. Gone are the days when engineering services providers only used to be the desktop based design and analysis delivery centers. Now they own advanced manufacturing infrastructure along with sophisticated labs for product tear-downs, value engineering, certifications, testing, etc. which can rival the infrastructure of even top manufacturing firms and gives confidence to the enterprises for engaging engineering service providers.

In our inaugural 2015 Engineering Services Blueprint Report we will try to understand how top 30 key engineering service providers (AF, AKKA, Alten, Altran, Assystem, Bertrandt, Capgemini, Cognizant, Cyient, EDAG, ESI Group, Ferchau, Genpact, Geometric, HCL, IAV, IGate, Infosys, ITC Infotech, KPIT, L&T Technology Services, Neilsoft, QuEST Global, Ranal, Segula, Semcon, Tata Technologies, TCS, Tech Mahindra, and Wipro) are leveraging above supply-side drivers to help service buyers understand the different engineering services capabilities in the market today and how they are shaping the creation of this market. 

We believe that the transformation and evolution of engineering service providers will continue as we move into the “As-a-Service Economy” and that HfS with our understanding of this market and our unparalleled reach to both service buyers and service providers can be a major catalyst for the growth of this sector.