Thursday, September 29 2022
  • Total Pages: 120
  • Companies: 10+ – Including Accenture Plc, Altair Engineering Inc., ALTEN Group, Capgemini Services SAS, Cybage Software Pvt. Ltd., Cyient Ltd., Dalian Wensi Haihui Information Technology Co. Ltd., Deaton Engineering Inc., EPAM Systems Inc., FAREVA SA, Flatworld Solutions Pvt. Ltd., GlobalLogic Inc. and HCL Technologies Ltd., among others.
  • Blanket: Main Drivers, Trends and Challenges; Product information and news; Value chain analysis; Parent market analysis; Landscape of vendors; COVID Impact and Recovery Analysis
  • segments: End user (automotive, consumer electronics, telecommunications, semiconductors and others), supply (offshore and onshore) and geography (North America, APAC, Europe, South America, and MEA).
  • Geographies: APAC (China and India), Europe (Germany and Poland), North America (WE)

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According to recent Technavio market research, the Engineering Services Outsourcing Market by Sourcing, End User and Geography – Forecast and Analysis 2021-2025 is expected to grow by USD 187.99 billion from 2021 to 2025, with an accelerated CAGR of nearly 23%. The report provides a detailed analysis of drivers and opportunities, top winning strategies, competitive scenario, future market trends, market size and estimates, and major investment pockets.

North America will register the highest growth rate of 41% among other regions. The United States is a key market for engineering services outsourcing in North America. Market growth in North America will be faster than the market growth in other regions.

Download a FREE sample: for more information on key countries in North America

Supplier Information –

The Engineering Services Outsourcing (ESO) market is fragmented and vendors are deploying growth strategies such as focusing on product delivery through multiple distribution channels to compete in the market.

Accenture Plc- In October 2020, the designated company Bhaskar Gosh as Chief Strategy Officer.

Capgemini Services SAS- In December 2020, the company collaborated with AWS to extend its digital cloud platform.

Altair Engineering Inc- In December 2020, the designated company Matthew Brown as chief financial officer.

Find additional highlights on vendors and their product offerings. Download a free sample report

Regional Market Outlook

In 2020, North America will continue to be the largest consumer of outsourced engineering services. This is due to the huge number of ESO agreements signed by US-based companies with low-cost domestic service providers. United States is the leading source of outsourcing demand, both domestically and internationally. For cost and labor arbitrage, US-based companies have used the technical assistance provided by offshore and nearshore outsourcing ESPs. The demand for IT services in United States is skyrocketing as Industry 4.0 and digitalization take hold. The digital platform has become a base on which companies can create new products and services. The large number of ESO agreements signed by US-based companies with service providers in low-cost countries would help the ESO market grow in North America over the forecast period.

Download our FREE sample report for more key highlights on the regional market share of most of the countries mentioned above.

Latest drivers and trends driving the market-

  • Engineering Services Outsourcing (ESO) Market Driver:
    • Cost savings through lower labor wages:

Due to the high cost of labor in developed or industrialized countries, companies are outsourcing their engineering processes to cheaper places. Outsourcing engineering services allow businesses to delegate work to low-cost labor while reducing costs associated with additional infrastructure, office space, operations, and labor -work. These advantages are expected to boost the outsourcing of engineering services from high-cost labor countries such as United States, Denmark, France, Germany, and the UK to countries with low labor costs such as India, Malaysia, Thailand, and Bulgaria.

  • Engineering Services Outsourcing (ESO) Market Tendency:
    • Collaborative co-innovation partnership with subcontractors:

Many companies successfully manage their outsourcing arrangements through considerable collaboration and co-innovation. In such cases, outsourcing service providers are seen as strategic partners embedded in their customers’ supply chains. The client company is committed to the success of its outsourcing partner and may be involved in the ongoing monitoring of offshore sites to maintain the highest possible quality of process and management. For example, Airtel, an Indian telecommunications company, engages heavily with its outsourced partners, such as IBM, Ericsson, Nokia and Siemens, under contracts based on risk-reward sharing agreements. Market development and Airtel’s performance are critical to the ability of these outsourcing companies to generate additional revenue.

Find additional information on various other market drivers and trends mentioned in our Sample FREE Report.

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Network Security Appliances Market by End User and Geography – Forecast and Analysis 2022-2026

Multi-Vendor Support Services Market by Service and Geography – Forecast and Analysis 2022-2026

Scope of the Engineering Services Outsourcing Market

Report cover


Page number


Year of reference


Forecast period


Growth momentum and CAGR

Accelerate at a CAGR of 23%

Market Growth 2021-2025

$187.99 billion

Market structure


Annual growth (%)


Regional analysis

North America, APAC, Europe, South America and MEA

Successful market contribution

North America at 41%

Main consumer countries

United States, China, India, Germany and Poland

Competitive landscape

Leading companies, competitive strategies, scope of consumer engagement

Profiled companies

Accenture Plc, Altair Engineering Inc., ALTEN Group, Capgemini Services SAS, HCL Technologies Ltd., Infosys Ltd., RLE INTERNATIONAL Produktentwicklungsgesellschaft mbH, Tata Consultancy Services Ltd., Tech Mahindra Ltd. and Wipro Ltd.

Market dynamics

Parent Market Analysis, Market Growth Drivers and Barriers, Fast and Slow Growing Segment Analysis, COVID 19 Impact and Future Consumer Dynamics, Market Condition Analysis for the Forecast Period,

Personalization area

If our report does not include the data you are looking for, you can contact our analysts and customize the segments.

About Us
Technavio is a global leader in technology research and consulting. Their research and analysis focuses on emerging market trends and provides actionable insights to help companies identify market opportunities and develop effective strategies to optimize their market positions. With more than 500 industry analysts, Technavio’s library of reports Their customer base consists of companies of all sizes, including more than 100 Fortune 500 companies. Technavio’s exploitable market to identify opportunities in existing and potential markets and assess their competitive positions in changing market scenarios.

Technavio Research
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