HFS Blueprint Report: Software Product Engineering Services

WHAT THIS BLUEPRINT REPORT COVERS

The 2018 HFS Software Product Engineering Services Blueprint Report provides a market overview and evaluation of the leading service providers in this space. This includes their skills across the HfS Software Product Engineering Services Value Chain: new product development, product sustenance, product testing, product deployment, product support, and product management services.

WHAT YOU’LL KNOW AFTER READING

• Key trends driving the software product engineering services market
• The strengths and challenges to take into consideration for the service providers including their capability, vision, and investment priorities
• Areas we expect to see the most growth in over the next few years
• Recommendations for both service buyers and service providers to get the most out of their relationships and to stay relevant in this market respectively.

KEY MARKET DYNAMICS

• Focus on strategic outsourcing: Customers are adopting a lean approach to run their businesses. In their portfolios, they are segregating their core and non-core products and functions. Non-core functions and products are outsourced for cost savings and operational efficiency, with a long-term and collaborative engagement with the service providers. Service providers are engaging with the clients for joint investment and go-to-market initiatives in this area.
• New business model: Customers are trying to reduce cost overhead and engage in unique commercial models with their service providers. As the SaaS model is cannibalizing customers’ traditional product license and revenue channels, they are more becoming more inclined toward nonlinear pricing models. Service providers have also mentioned several examples of outcome-based and risk-reward pricing models for both vertical and enterprise ISVs.
• Increasing influence of digital technologies: The technology change agents in software product engineering include automation, IoT, cloud, and artificial intelligence. These technologies are instrumental in the overall customer journey, competitive advantage, user experience, and other business outcomes. Service providers need to develop strong expertise in these emerging areas.
• Co-investment model is becoming popular: Using co-investment-led business models to partner for developing next-generation products is becoming popular in the software product engineering space. We are observing an increasing number of initiatives and participation by service providers through this investment model. This partial monetization enables customers to share the risk and reduce up front investment.
• Exploring enterprise segment: Traditional software product engineering service providers are focused on the ISV segment. Now enterprise and internet companies are building their own platforms. This can be a target segment for the service providers as these companies will be interested to outsource some of the project works.

WHO SHOULD READ THIS REPORT

Executive leaders and business unit leaders, technology leaders, R&D leaders, management consultants, investment professionals, advisors, and outsourcing managers who have responsibilities in building out software product engineering service delivery capabilities. 

SERVICE PROVIDERS WE DISCUSS

Accenture, Alten Calsoft Labs, Altran, Belatrix, Cognizant, Cybage, EPAM, GlobalLogic, Happiest Minds, HARMAN, HCL, Infosys, ITC Infotech, Luxoft, Mindtree, Mphasis, Pactera, Persistent Systems, QuEST Global, TCS, Tech Mahindra, ThoughtWorks, Tieto, Wipro, and Xoriant