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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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SOURCE Technavio

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Technology

AirCheck Australia & New Zealand Renamed as RCS MEDIA MONITORS

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SYDNEY, Jan. 13, 2025 /PRNewswire/ — AirCheck, a leading provider of broadcast monitoring services in Australia and New Zealand is pleased to announce its renaming as RCS MEDIA MONITORS, effective immediately.

AirCheck monitors songs and commercials providing almost real time reporting tools for radio and television broadcasters, music media, record companies, advertising agencies and industry analysts.

This change reflects the company’s growth, expanded service offerings, and a strengthened focus on providing comprehensive media intelligence.

The new name, RCS MEDIA MONITORS, builds on the expertise of its parent company, RCS, to offer enhanced monitoring solutions. By integrating RCS’s global technology and resources, the company will provide clients with a broader range of tools for tracking and analysing media campaigns across a variety of platforms and markets.

“We’re excited to take this step forward,” said Philippe Generali, President and CEO of RCS Global. “The rebranding to RCS MEDIA MONITORS allows us to expand our reach and improve our services, giving clients access to deeper insights and a wider array of media monitoring tools. With RCS’s support, we can offer more robust data and solutions that cover not just broadcast, but also digital and emerging media channels.”

The name change signals the company’s commitment to evolving with the changing media landscape. With RCS MEDIA MONITORS, clients can expect the same reliable monitoring services they’ve trusted for over 20 years in Australia and 15 years in NZ.

www.rcsmediamonitors.com.au

About RCS MEDIA MONITORS

RCS MEDIA MONITORS (formerly AirCheck) is a leading provider of broadcast monitoring and media intelligence solutions in Australia, New Zealand and India. The company helps clients across industries optimise media strategies, measure performance, and gain insights from a wide range of traditional and digital media. RCS MEDIA MONITORS is part of RCS, a global leader in broadcast automation and media technology.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/aircheck-australia–new-zealand-renamed-as-rcs-media-monitors-302347810.html

SOURCE RCS MEDIA MONITORS

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iM Global Partner mourns the passing of Philippe Uzan

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PARIS, Jan. 13, 2025 /PRNewswire/ — It is with deep sadness that iM Global Partner (iMGP) announces the passing, one month ago, of our dear friend and colleague, Philippe Uzan.

 

 

Philippe’s exceptional career in asset management spanned more than 30 years and is marked by remarkable achievements in the organizations for which he worked and deep contributions to the industry as a whole. His passing is a tremendous loss to all who knew and worked with him.

Philippe joined iM Global Partner in February 2020 as Deputy CEO and CIO Global Asset Management, responsible for overseeing our financial strategies and products and designing value-added investment solutions for our clients across Europe and the United States.

His expertise spanned all asset classes, and he had a deep understanding of markets and their impact on investors and their investment needs. He was an eloquent man who contributed a number of papers and articles to the media, always with the intention of educating and making financial concepts more relatable. He has left an indelible mark on our organization and on the broader industry.

Prior to joining iM Global Partner, Philippe was latterly Chief Investment Officer at Edmond De Rothschild Asset Management, where he worked for 11 years and where he led the portfolio management teams, optimizing the synergies between analysis and portfolio management. He previously spent three years as Research and Global Asset Allocation Director, where he developed the portfolio management and research teams and modernized investment processes and the product range.

Philippe began his career as an Equity Derivatives Trader at Société Générale and held roles at AGF Asset Management (now part of Allianz Global Investors) and Natixis AM.

Throughout his career, Philippe’s outstanding intelligence, humility, and collaborative spirit earned him the respect and admiration of his peers.

Philippe Couvrecelle, Founder and CEO of iM Global Partner, expressed his heartfelt condolences: “It was with infinite sadness and pain that I learned of Philippe’s passing from a devastating illness. I had known Philippe closely for almost 20 years, as we worked together for Natixis, Edmond de Rothschild and iMGP. I pay immense tribute to his humanity, his sense of humor, his brilliant intelligence and his presence, which I will deeply miss. We had shared so much and still had so much to do together. In his memory, we will continue our path forward with strength, success and intensity, always preserving our values and our company culture to which he was so attached.

We will all miss Philippe enormously at iM Global Partner. He will be remembered not only for his professional achievements but also for his warmth, generosity, kindness and his unwavering dedication to his colleagues and community. Our thoughts are with his wife and three children, his family, friends and loved ones during this difficult time.”

CONTACT: media@imgp.com

 

 

SOURCE iM Global Partner

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Blackbaud Releases New Donation Forms for Australia and New Zealand Customers to Help Social Impact Organisations Raise More

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Customers in Australia and New Zealand Can Now Leverage Donation Forms that Natively
Integrate with Blackbaud’s Payment Processor and CRM Solutions to Give a Completely
Connected Experience

SYDNEY, Jan. 13, 2025 /PRNewswire/ — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced the rollout of its Optimized Donation Forms for Raiser’s Edge NXT® users in Australia and New Zealand, as well as the release of both the Standard and Optimized Donation Forms for Blackbaud CRM™ users in Australia and New Zealand.

Blackbaud Donation Forms help social impact organisations raise more, streamline the donor experience, simplify administrative tasks, and reduce processing costs, enabling them to sustain and grow their missions.

“We’re excited to bring Blackbaud Donation Forms, which are proven to raise more funds without transaction fees, to more customers globally,” said Sudip Datta, chief product officer, Blackbaud. “We make online giving simple, whether through Blackbaud’s Standard Donation Forms or Optimized Donation Forms, both of which are proven to help increase gift size, eliminate transaction fees and expand the donor base.”

The forms allow nonprofits to choose the fee coverage option that’s right for them ––Complete Cover, which provides free processing, or Donor Cover, which lets supporters cover their transaction fees. And due to native integration, managing transactions is easy. With Blackbaud CRM, the transactions are saved to an enhanced revenue batch for review prior to committing.

Optimized Donation Forms
Blackbaud Optimized Donation Forms reduce the number of decisions for both the organisation and its constituents, resulting in an optimal donor experience and an increase in click-to donation-conversions. Optimized Donation Forms are a great choice for campaigns that need a quick visual punch and that are focused on securing more donors. They are mobile-first and display seamlessly on a website without the need to create a new webpage, enabling payment directly within the form. Customisable with images and a mission statement, they let charitable organisations project consistent branding in a visually appealing, intuitive and engaging way. Additionally, these intelligent forms automatically adjust to increase higher-than-average gift amounts based on donor data analysis.

Standard Donation Forms
Blackbaud Standard Donation Forms are a great choice for specifically targeted campaigns where additional data collection is required. They allow organisations to personalise colours, text, and ask ladders for ultimate customisation and form extension. Standard Donation Forms also enable you to retain donors better by promoting Recurring Gift Upsell to encourage one-time donors to give monthly.

Early Success
US customers using the forms have already seen early success, reporting satisfaction with the ease of use, customisation and flexibility of the forms. Using the Optimized Donation Forms, Seed Savers Exchange saw a 10% increase in their conversion rate and a jump in average donation amount by 61% from the year prior. 

Others appreciate the time-savings and ease of use. “The Optimized Donation Form literally cuts my entry time by more than half,” said Tracey Zirneklis, advancement services manager, Porter-Gaud School. “Being able to see what’s coming in, edit the record, add campaigns or funds or appeals, being able to adjust what I want to do acknowledgement-wise—it is so much more streamlined.”

Spencer Lassen, Senior Systems Consultant at Legacy Health, shared, “Integration of the donation forms into Blackbaud CRM has been seamless. This has been the easiest and fastest integration of a donation platform in my career. I am not a graphic designer, but the intuitive interface and tools have allowed me to easily set up exciting donation forms and email acknowledgments with a modern look and feel. It has been easy to roll out to our team allowing more staff to be able to set up donation forms, which is allowing us to be more responsive to the emergent fundraising needs of our organisation.”

Learn More
Learn more and request a demo here. 

Blackbaud Donation Forms are currently available at no extra cost to Raiser’s Edge NXT users in the US, and Australia and New Zealand, and will be coming to Canada and the UK in 2025. They are also available at no extra cost to Blackbaud CRM users in the US, and Australia and New Zealand, and will be coming to Canada in 2025 as well. Additionally, Blackbaud Donation Forms are available at no extra cost to Altru users in the US. All users must process transactions with Blackbaud Merchant Services to take advantage of Blackbaud Donation Forms.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud’s essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud’s solutions are unleashing the potential of the people and organisations who change the world. Blackbaud has been named to Newsweek’s list of America’s Most Responsible Companies, Quartz’s list of Best Companies for Remote Workers, and Forbes’ list of America’s Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com.au or follow us on X/Twitter, LinkedIn, Instagram and Facebook.

Media Inquiries
media@blackbaud.com 

Forward-looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organisation; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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SOURCE Blackbaud, Inc.

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