ESO refers to the outsourcing of specific engineering tasks to
third-party service providers. Though engineering services are a critical part
of any vertical, the recent economic downturn and the need to survive in
extremely competitive market environments has forced organizations to outsource
them to ESO vendors. ESO enables organizations to develop innovative and
cost-effective engineering products in minimal time. Also, ESO services help
organizations access talented and skilled engineering professionals from across
the world. Thus, ESO enables organizations to develop an economic cost
structure, use resources in the best possible way, and focus on core
competencies.
Analysts forecast the Global ESO market will grow at a CAGR of 25.65 percent over the period 2013-2018.
The Report recognizes the following companies as the key players in the
Global Engineering Services Outsourcing (ESO) Market : HCL Technologies Ltd,
Infosys Ltd, Tata Consultancy Services Ltd, Wipro Ltd , Auriga Inc., Altran ,
Aricent Group , Atos Origin , Beyondsoft Corp., Capgemini SA., Clasoft Labs
India Pvt.Ltd, Computer Sciences Corp., Cybage Software Pvt. Ltd, Dell Inc.,
EPAM Systems, GlobalLogic , Hewlett-Packard Co., IBM Corp., Infotech
Enterprises Ltd, iGate Corp., KPITCummins Infosystems Ltd, Luxoft , L&T
IES, MindTree Ltd, Mindfire Solutions , QuEST Global Services Pte. Ltd, Sonata
Software Ltd, Symphony Teleca Corp., Tata ELXSI Ltd
Countries such as India and China are experiencing significant growth in
captive centers of MNCs. According to research studies, over 300 engineering
service captives have been started in India since 2000. These operations
account for 50 percent of the engineering services market share there, with the
remaining 50 percent share held by Indian service providers. Captive centers
are just beginning to gain share and momentum in China.
Covered in this
Report
The Global ESO market is categorised by types of services: Drafting and
3D Modeling, Engineering Analysis, Product Design and Testing, Design
Automation, Control Engineering, Manufacturing Engineering, Embedded Systems,
Plant Design/Process Engineering.
Global ESO Market 2014-2018, has been prepared based on an in-depth
market analysis with inputs from industry experts. It covers Global ESO market
landscape and its growth prospects in the coming years. The report also
includes a discussion of the key vendors operating in this market.
According to the report, the growth of the Global ESO market is driven by
many factors, one of which is the need for cost reduction. In order to sustain
themselves in a competitive market, enterprises need to have a cost-effective
product development cycle. In this regard, ESO solutions enable these companies
to outsource engineering tasks to emerging countries such as India and China,
which provide skilled labor at low cost.
Further, the report states that the issues of IP ownership are one of the
major challenges confronting this market. Outsourcing involves sharing a wide
array of proprietary knowledge. Hence, concerns are often raised over the
ability of the offshore partner to safeguard organizations' confidential
information. The market also faces capability and funding issues
