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Engineering Services Outsourcing Market to Grow by USD 203.04 Million from 2023-2027, AI-Driven Transformation and Labor Cost Savings Fuel Growth – Technavio Report

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NEW YORK, Sept. 6, 2024 /PRNewswire/ — Report with the AI impact on market trends- The global engineering services outsourcing market size is estimated to grow by USD 203.04 million from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of almost 18.75%  during the forecast period. Cost savings from lower labor wages is driving market growth, with a trend towards collaborative co-innovation partnership with outsourcing firms. However, risk of intellectual property theft and misuse  poses a challenge. Key market players include Altair Engineering Inc., Alten SA, Capgemini Service SAS, Cyient Ltd., Deaton Engineering Inc., EPAM Systems Inc., FEV Consulting GmbH, Flatworld Solutions Pvt. Ltd., HCL Technologies Ltd., Hitachi Ltd., Honeywell International Inc., Infosys Ltd., Leedeo Engineering S.L., Mahindra and Mahindra Ltd., Quest Services Pte. Ltd., Siemens AG, Sonata Software Ltd., SSA Business Solutions India, Tata Consultancy Services Ltd., and Wipro Ltd..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View the snapshot of this report

Engineering Services Outsourcing Market Scope

Report Coverage

Details

Base year

2022

Historic period

2017 – 2021

Forecast period

2023-2027

Growth momentum & CAGR

Accelerate at a CAGR of 18.75%

Market growth 2023-2027

USD 203.04 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

18.25

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 42%

Key countries

US, China, India, Germany, and Poland

Key companies profiled

Altair Engineering Inc., Alten SA, Capgemini Service SAS, Cyient Ltd., Deaton Engineering Inc., EPAM Systems Inc., FEV Consulting GmbH, Flatworld Solutions Pvt. Ltd., HCL Technologies Ltd., Hitachi Ltd., Honeywell International Inc., Infosys Ltd., Leedeo Engineering S.L., Mahindra and Mahindra Ltd., Quest Global Services Pte. Ltd., Siemens AG, Sonata Software Ltd., SSA Business Solutions India, Tata Consultancy Services Ltd., and Wipro Ltd.

Market Driver

Outsourcing partnerships are characterized by collaborative relationships, where both the customer organization and the outsourcing service provider share risks and benefits. This approach is crucial for the successful execution of outsourcing projects, especially as the challenges and risks continue to evolve. Apple, for instance, collaborates with China-based manufacturers to leverage their expertise in high-end material science and packaging technology. Simultaneously, Apple sets specific manufacturing and quality control measures to ensure the premium quality of its products. India-based telecom company Airtel also forms strategic partnerships with outsourcing firms like IBM, Ericsson, Nokia, and Siemens, based on shared risk and reward deals. Airtel’s success significantly impacts the revenue generation of these outsourced companies. Co-innovation, where both parties exchange knowledge to develop new solutions and products, is a critical driver of growth in the Engineering Services Outsourcing (ESO) market. Despite the risks, the collaborative nature of these partnerships is expected to fuel the expansion of the global ESO market during the forecast period. 

The Engineering Services Outsourcing market is experiencing significant trends in various industries. In Auto designing, Computer-aided design (CAD), Computer-aided engineering (CAE), and Computer-aided manufacturing (CAM) are increasingly popular. Telecom, Robotics, and OEMs are leveraging outsourcing for IT integration and digitalization. March 2020 marked a surge in offshoring for CNC machines and digital collaboration tools. Industrial automation, control services, and mobility are driving demand for customized services in sectors like 5G networks, Smart Products, and Digital twins. OEMs are focusing on servitization and M2M (Machine-to-Machine) for better efficiency. Cyberattacks pose a threat to intellectual property (IP) and data security, necessitating robust cybersecurity measures. Digitalization and cloud adoption are transforming PLM/MES systems, while AI and machine learning (ML) are revolutionizing testing services and designing services. On-shore and off-shore outsourcing continue to coexist, with automation and integrated solutions being key offerings. Platform-as-a-Service (PaaS) and 3D printing are gaining traction, while cybersecurity, edge analytics, and software tools remain essential components of the Engineering Services Outsourcing landscape. 

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 Market Challenges

The engineering services outsourcing market faces a significant challenge in the form of intellectual property (IP) theft. Organizations are cautious about outsourcing their R&D operations due to the risk of design and technology leakage. Strict non-disclosure policies and procedures are implemented to prevent unauthorized access to confidential information. However, the increasing use of computer technology and online access makes it difficult to safeguard IP completely. Collaborating with engineering services providers across borders adds to the complexity, as differences in laws and regulations can make it challenging to prove IP breaches. Techniques such as forced technology transfer, corporate espionage, and hacking are used to steal IP, resulting in loss of competitive advantage for customer organizations. This concern restricts many from outsourcing engineering services during the forecast period.The Engineering Services Outsourcing market is experiencing significant growth due to the increasing demand for cost savings and expertise in areas like auto designing, computer-aided manufacturing, telecom, robotics, IT integration, and OEMs. However, challenges persist in implementing computer-aided design (CAD), computer-aided engineering (CAE), and computer-aided manufacturing (CAM) technologies, including 3D printing and CNC machines. Digitalization trends such as enterprise asset management, industrial automation, control services, mobility, smart products, and digital twins present opportunities, but also risks like cyberattacks and intellectual property concerns. The adoption of 5G networks, digital collaboration tools, offshoring, cloud, cybersecurity, servitization, M2M, edge analytics, PLM/MES systems, customized services, Platform-as-a-Service (PaaS), artificial intelligence (AI), machine learning (ML), data security, and testing services require careful consideration. Challenges include on-shore vs. Off-shore outsourcing, automation, and integrated solutions, as well as the impact of AI, ML, and cybersecurity on intellectual property and data security.

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Segment Overview 

This engineering services outsourcing market report extensively covers market segmentation by  

End-user 1.1 Automotive1.2 Consumer electronics1.3 Telecom1.4 Semiconductor1.5 OthersGeography 2.1 North America2.2 APAC2.3 Europe2.4 South America2.5 Middle East and Africa

1.1 Automotive-  The automotive industry’s global growth is driven by changing consumer needs, focusing on connectivity, electrification, and safety features. Manufacturers aim to produce smart, fuel-efficient vehicles that comply with emission regulations. New products, such as electric cars, car electronics, and telematics, fuel the demand for engineering services in this sector. Cost reduction, less time-to-market, and competition are significant factors driving the demand for Engineering Services Outsourcing (ESO) in automotive. Manufacturers invest in R&D to efficiently handle the increasing complexity of automotive technologies. The global automotive ESO market is technology-intensive, with a rise in turnkey projects for end-to-end services. Manufacturing engineering, a complex field, deals with designing, manufacturing, assembling, testing, and logistics. ESPs offer complete vehicle engineering solutions for components, electrical equipment, and electronics architecture. Partnerships, joint ventures, and acquisitions are common for electric, connected, and autonomous cars’ development. The need for testing and validation increases, leading to opportunities for ESPs to expand their technological portfolio and maximize profits. ESPs target OEMs and tier-1/2 suppliers, and the market will experience strong growth due to these factors.

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Research Analysis

The Engineering Services Outsourcing Market is experiencing significant growth due to the increasing adoption of advanced technologies such as Platform-as-a-Service (PaaS), Artificial intelligence (AI), and Machine learning (ML) in the engineering industry. These technologies enable the delivery of Intellectual Property (IP) through cloud-based engineering software, facilitating the development of digital twins and integrated solutions. Automation, a key driver of efficiency and cost savings, is being integrated into various engineering processes including Auto designing, Computer-aided manufacturing (CAM), Computer-aided engineering (CAE), and Computer-aided design (CAD). The telecom sector, robotics, CNC machines, and 3D printing are also benefiting from engineering outsourcing services. Digitalization is at the heart of this transformation, enabling the secure transfer and processing of large data sets, ensuring Data security is a top priority for engineering service providers. The future of engineering services lies in the seamless integration of these technologies to deliver innovative, efficient, and cost-effective solutions.

Market Research Overview

The Engineering Services Outsourcing Market is experiencing significant growth due to the increasing adoption of advanced technologies such as Platform-as-a-Service (PaaS), Artificial intelligence (AI), and Machine learning (ML) in various industries. Intellectual Property (IP) protection and data security are key concerns, with the integration of AI and ML in engineering services ensuring stronger IP protection and enhanced data security. Digitalization is at the forefront of engineering services, with the implementation of digital twin technology, 5G networks, and cloud-based engineering software. Automation, integrated solutions, and IT integration are also driving the market forward, with robotics and CNC machines playing a crucial role in manufacturing processes. Telecom, OEMs, and the automotive industry are major contributors to the market, with the increasing demand for mobility and smart products. Industrial automation, control services, and enterprise asset management are also significant areas of focus. Offshoring and on-shore outsourcing continue to be popular options for companies seeking cost savings and expertise. Cyberattacks are a growing concern, with cybersecurity becoming an essential component of engineering services. Servitization, M2M (Machine-to-Machine) communication, edge analytics, and PLM/MES systems are also gaining traction. Customized services, 3D printing, and CAD, CAE, CAM, and testing services are essential components of the engineering services landscape. The market is expected to continue growing in the post-March 2020 era, with a focus on innovation, digital collaboration tools, and the integration of emerging technologies such as AI, ML, and 5G networks.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userAutomotiveConsumer ElectronicsTelecomSemiconductorOthersGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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HighByte Launches Namespaces, Releases Next-Generation Industrial DataOps Solution for Global Manufacturers

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Industrial software company announces HighByte Intelligence Hub version 4.0, accelerating adoption of Unified Namespace architectures

PORTLAND, Maine, Oct. 9, 2024 /PRNewswire/ — HighByte®, an industrial software company, today announced the release of HighByte Intelligence Hub version 4.0 with new Namespaces and Smart Query capabilities that advance the Unified Namespace (UNS) architectural pattern and address the key challenges to its adoption. Together, Namespaces and Smart Query enable data engineers to visually design, organize, and govern a UNS and query across it. The major release also includes a refined data modeling engine that makes it easier to create, manage, and validate more complex models and a native integration with Inductive Automation’s Ignition platform, enabling users to easily integrate this leading SCADA and IIoT platform into their enterprise data strategy.

“HighByte Intelligence Hub is crucial to our industrial data strategy. It allows us to break down silos and deliver structured data into a unified namespace,” said Brent Wassell, Principal IT Business Analyst at McNeilus, an Oshkosh Corporation Business. “The native integration with Ignition changes the game, allowing for greater scalability and faster deployments across our operations to drive digital transformation.”

HighByte Intelligence Hub is an Industrial DataOps solution that contextualizes and standardizes industrial data from diverse sources at the edge to help bridge the gap between OT and IT systems, networks, and teams. HighByte leads the evolving Industrial DataOps market with the most complete solution to optimize the orchestration of usable industrial data across the enterprise.

“Industrial connectivity is evolving beyond just linking industrial systems. It’s about creating a data-driven ecosystem. With advancements like DataOps, manufacturers can access and manage data more efficiently than ever, unlocking new levels of productivity and operational intelligence,” said Anand Taparia, Principal Analyst at IoT Analytics, a leading global provider of market insights. “The global industrial connectivity market is projected to grow from USD $89 billion in 2023 to USD $104 billion by 2028, with software, especially DataOps, being the fastest-growing segment at 49% CAGR.”

The latest release also includes major updates to Pipelines, improving data orchestration and observability and establishing Pipelines as the center of data movement in the Intelligence Hub. New Flow, Event, and Polled stages support time and event-based triggers. Additionally, Model and Model Validation stages have been added to help enforce data governance. Users can also expect a completely new UX that centers configuration around Pipelines with its intuitive graphical builder.

HighByte Intelligence Hub version 4.0 is now commercially available. All new features and capabilities introduced in version 4.0 are included in standard pricing. Please contact HighByte or an authorized distributor to request a trial or purchase a subscription license.

Additional Resources

Read more about HighByte Intelligence Hub version 4.0Download the Data Modeling Guidebook See all company and product news 

About HighByte
HighByte is an industrial software company in Portland, Maine USA building solutions that address the data architecture and integration challenges created by Industry 4.0. HighByte Intelligence Hub, the company’s award-winning Industrial DataOps software, provides modeled, ready-to-use data to the Cloud using a codeless interface to speed integration time and accelerate analytics. Learn more at https://www.highbyte.com.

HighByte is a registered trademark of HighByte, Inc.

Media Contact
HighByte
Torey Penrod-Cambra
Chief Communications Officer
+1 844.328.2677 x701
torey.penrod-cambra@highbyte.com

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Apollo GraphQL Unlocks the Value of Enterprise APIs with New Innovations

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Apollo Connectors for REST APIs available today to enable next-gen intelligent app development

Additional new product enhancements help enterprises improve developer efficiency and API performance

Coinbase, Indeed.com, JUCR among hundreds building their API strategies using Apollo GraphQL, also presenting this week at GraphQL Summit 2024 among many industry leaders designing, building, and operating GraphQL at scale

SAN FRANCISCO, Oct. 9, 2024 /PRNewswire/ — Apollo GraphQL, the GraphQL API Platform company, today announced Apollo Connectors for simplifying GraphQL API integration. Unveiled at GraphQL Summit 2024, this groundbreaking addition to Apollo’s product suite empowers organizations to leverage GraphQL as a complementary platform that sits atop existing services with minimal overhead, enhancing the flexibility, speed, and efficiency of API integration. By reducing the need for middleware and boilerplate code, Apollo Connectors further position Apollo at the forefront of the GraphQL API market. Apollo Connectors for REST APIs is available today in public preview.

Many organizations recognize the potential of GraphQL but struggle with managing various APIs and maximizing the value of their existing REST API investments, which often fetch too much or too little data. These challenges add complexity and cost, slowing innovation. As API ambitions scale to develop modern and intelligent applications, the Apollo GraphOS® platform offers an API platform approach that reduces the cognitive load on development teams, allowing them to focus on what matters most—delivering value.

The introduction of Apollo Connectors for REST APIs simplifies this transition further by allowing developers to integrate REST APIs into a federated GraphQL schema, incrementally or all at once, without incurring additional overhead. This pivotal advancement bridges the gap between traditional REST architectures and modern GraphQL deployments, enabling a unified, manageable, and more innovative API strategy across the organization. Apollo also celebrates the fifth anniversary of Apollo Federation, now considered the consensus standard for GraphQL in the enterprise.

“The pace of innovation, driven by AI and the demand for personalized digital experiences, means that organizations can no longer afford to delay modernizing their API strategies,” said Matt DeBergalis, CTO and co-founder of Apollo GraphQL. “Apollo Connectors for REST APIs allow teams to swiftly adapt by incrementally adopting GraphQL without overhauling existing systems. This isn’t just about simplification; it’s about staying competitive in an environment where speed and flexibility are critical. Apollo Connectors are designed to make that transition seamless and immediate.”

Key Features of Apollo Connectors for REST APIs include:

Declarative integration: Engineers can use a simple syntax within their GraphQL schema to connect directly to REST API endpoints, streamlining the process of mapping types and fields to underlying services.

Eliminating the GraphQL server: By eliminating the complexities of GraphQL server development and maintenance, Apollo Connectors reduces technical debt and allows teams to focus on delivering value faster.

Seamless onboarding: Apollo GraphOS provides integrated tooling and a smart editor for VSCode, ensuring a smooth onboarding process for teams of all sizes.

“Apollo Connectors makes it dramatically easier for enterprises to unify their API ecosystem with a federated GraphQL architecture,” said Rob Brazier, vice president of product at Apollo GraphQL. “Almost every organization of significant scale has a large REST API footprint. Apollo Connectors for REST APIs enable our customers to leverage that API footprint, integrating with it to drive innovation without wasting time on risky migrations or waterfall architectural transformations.”

Additional New Product Features Improve Scalability, Speed, and Developer Productivity

Apollo is also unveiling several enhancements to its platform, Apollo GraphOS, and its suite of tools aimed at improving enterprise scale, developer velocity, and platform performance:

Significant performance gains now in Apollo Router Core: Apollo Router Core, now with a new native query planner in public preview that delivers significant performance improvements, reduces resource usage, and cuts latency when processing and planning client requests.

As Apollo customers scale their graphs to handle more clients and increasingly complex use cases, they require a way to ensure that complex GraphQL operations do not compromise performance or lead to denial of service issues. Enterprise customers can use Apollo’s GraphOS Router, which now includes native demand control to help manage and limit operational complexity, to prevent performance slowdowns.

GraphOS Router also introduces entity caching with cache invalidation in public preview. API teams can now store key business entities, such as inventory and user records, in Redis for long-term caching, ensuring responsive and high-performing applications. They also have granular control over invalidating entries based on time to live, subgraph, type, and more. Apollo will also offer long-term support for it, ensuring that enterprises can rely on it for years to come.

Improved developer velocity and performance for API platform teams. Apollo continues to prioritize developer experience with the latest improvements in Rover, its leading command-line interface for GraphOS. The new workflow improvements in Rover integrate it more closely with GraphOS Studio and bring under-the-hood improvements that make it up to 10 times faster for developers to compose large-scale graphs.

Rover now executes commands in parallel and asynchronously, such as composition and fetching, improving speed and reliability, especially for large graphs. Native OS-level threading also makes local composition up to 10x faster.

Beyond performance improvements, Rover now supports subgraph mirroring, an automated workflow that allows developers to seamlessly fetch and test subgraph configurations on their local machines. This new enhancement eliminates the time-consuming manual setup previously required, enabling developers to quickly test new subgraphs and router configurations in a controlled environment, significantly boosting developer productivity. Download the latest Rover release.

Automatically enforce organization-specific standards with enhanced security and compliance. Apollo GraphOS introduces custom schema checks, a powerful new feature that addresses API platform teams’ demand for enhanced schema validation capabilities. This functionality allows organizations to integrate their own business logic, security policies, and governance rules into Apollo’s existing schema check workflow, ensuring that every schema change adheres to company-specific standards. The result is a more robust, flexible, and secure approach to maintaining schema integrity, allowing platform teams to uphold organizational standards in an automated manner while adhering to stringent organizational requirements.

“Our Apollo GraphOS platform and suite of tools give enterprises the capabilities they need to build next-generation intelligent applications,” said DeBergalis. “The enhancements we’re announcing today further our mission to make API platforms more powerful, flexible, and easier to use at any scale.”

Users can experience first-hand the ease of building an expansive GraphQL API through the power of Apollo Connectors for REST APIs. Start today for free.

Join the Conversation at GraphQL Summit 2024

Apollo GraphQL invites developers, engineers, and industry leaders to join us at the seventh annual GraphQL Summit 2024, where over 1,000 GraphQL enthusiasts have gathered in person this week in New York City and online. Sponsored by Xolv.io, Team Duality, and Moon Highway, GraphQL Summit will also be available virtually on November 7, 2024. Register now to explore the latest in GraphQL and API platform engineering and join in the conversation on LinkedIn and X by following #GraphQLSummit.

This announcement and more will be featured in the GraphQL Summit keynote delivered by DeBergalis, which can be viewed today via live-stream here beginning at 9 am EDT and covered on Apollo’s blog. For those unable to attend, GraphQL Summit Virtual will be held on Nov 7 and will feature announcements and presentations from the in-person event.

Customer Validation

“Our partnership with Apollo GraphQL has been key to supporting us to build our business at Coinbase and moving towards a fully federated GraphQL architecture. We’re breaking down our monolith into manageable subgraphs, reducing bottlenecks, and creating a more scalable system. Apollo empowers our teams to scale, innovate, and grow with confidence.” – Stephanie Saunders, Engineering Manager at Coinbase

“At Indeed, we rely on our primary graph, OneGraph, to manage traffic from our native apps, website, third-party vendors, and subsidiaries. Monitoring and controlling these interactions is essential to avoid excessive load on our supergraph and unnecessary fees from third-party APIs. With Demand Control, Apollo has provided us with a high-performance, out-of-the-box solution that safeguards our supergraph from costly operations. By estimating an operation’s complexity before execution, we now have enhanced control over traffic management and can effectively apply rate limits.” – Carlos Gomez, Software Engineer at Indeed.com

“With Apollo GraphOS and federated subscriptions, JUCR delivers seamless live updates to thousands of EV charging sessions across Europe, keeping our customers up-to-date in real-time during their charging experience.” – Max Grollman, Co-founder & CTO at JUCR

About Apollo GraphQL

Apollo GraphQL helps developers help the world by providing a better API platform across teams. Apollo’s open-source software is downloaded 25M times per month and its commercial GraphQL technologies power the most innovative brands today. Teams at Coinbase, New York Times, and Wayfair ship personalized, omnichannel experiences faster with a supergraph – a self-service GraphQL platform that spans any number of backend services. Serving over 5T requests in 2023, the Apollo GraphOS® platform simplifies API development with workflows and infrastructure to build, test, and ship supergraphs at any scale. Based in San Francisco, Apollo is backed by Insight Partners, Andreessen Horowitz, Matrix Partners, and Trinity Ventures. Learn more at: https://www.apollographql.com.

Contact

Jennifer Tyrseck
communications@apollographql.com
(203) 614-9530

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E-Home Household Services Holdings Limited intends to merge and acquire an AI access control system + smart community service company to expand the front-end industry chain.

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FUZHOU, China, Oct. 9, 2024 /PRNewswire/ — E-Home Household Services Holdings Limited (NASDAQ:EJH) (the “Company” or “eHome”), an integrated home services provider in China, announced today that it intends to merge and acquire Fuzhou Yunding Mutual Chain Information Technology Company Limited (hereinafter referred to as “Fuzhou Yunding”).

Fuzhou Yunding is a comprehensive Internet of Things information platform company mainly focusing on AI access control system + intelligent community services, and has obtained more than 20 authorized intellectual property rights. Its products are closely integrated with the government’s municipal governance and big data needs, and it has formed a multi-dimensional cooperation with the government, banks, and property companies in the form of commercial housing, public rental housing, guaranteed housing, and old districts, and has increased the cooperation and expansion of the channels of schools and parks to comprehensively promote the intelligentization of regional community management and operation throughout the life cycle. Comprehensively promote regional community management and operation of the whole life cycle intelligence.

At present, Fuzhou Yunding has landed more than 500 community projects in Fujian and Anhui, with more than 3 million online registered APP users. Many famous neighborhoods (e.g. Fuzhou Poly Champagne International), famous universities (Fuzhou University) and Xiamen Siming District Government use Fuzhou Yunding’s AI access control system and intelligent community services.

Mr. Wenshan Xie, Chairman and CEO of E-Home, commented: “E-Home’s proposed merger and acquisition of Fuzhou Yunding Mutual Chain Information Technology Co., Ltd. is based on the company’s development needs, and Fuzhou Yunding combination of the two, can be from the Internet of Things information platform front-end access to domestic demand for service customers for E-Home, to achieve the integration of the industry from the front-end to the back-end, to improve the company’s market competitiveness and brand influence, but also E-Home to enter the AI industry + intelligent community services an important step. It is also an important step for E-Home to enter the AI industry + smart community service.”

About E-Home Household Service Holdings Limited

Established in 2014, E-Home Household Service Holdings Limited is a Nasdaq-listed household service company based in Fuzhou, China.

The company is mainly involved in: 1. Home appliances, smart home installation, maintenance; 2. Housekeeping, nannies, maternity matron and cleaning services; 3. Internet aging + home care; 4. Units of public places cleaning. After years of development, E-Home has formed two main business channels, ToB and ToC, with two important subsidiaries.

Two main channel: 1. The ToC business to nanny, maternity matron, home care, cleaning, repair, maintenance of family integrated services. 2. The ToB business to public cleaning. Two subsidiaries: 1. Zhongrun Pharmaceutical, integrating pharmaceutical warehousing, distribution, wholesaling, retailing, and online sales; 2. Chuangying: presidential training, internal training, corporate consulting and counseling, and policy counseling. E-Home has been a comprehensive service enterprise for family life! We have always adhered to the “solving every issue of customers with heart” business philosophy, adhere to do the industry benchmark. For more information, visit the Company’s website at http://www.ej111.com/ir.html.

Forward-Looking Statement

All statements other than statements of historical fact in this announcement are forward-looking statements in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions are intended to identify such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to consider risk factors, including those described in the Company’s filings with the SEC, that may affect the Company’s future results. All forward-looking statements attributable to the Company and its subsidiaries or persons acting on their behalf are expressly qualified in their entirety by these risk factors.

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