US Engineering Services Outsourcing Market to grow by USD 93,984.53 million from 2022 to 2027; The cost savings from lower labor wages to boost market growth - Technavio

NEW YORK, Aug. 9, 2023 /PRNewswire/ -- The US-engineering services outsourcing market is estimated to grow at a CAGR of 23.34% between 2022 and 2027. The market size is forecast to increase by USD 93,984.53 million, according to Technavio. Discover some insights on market size historic period (2017 to 2021) and Forecast (2023 to 2027) before buying the full report -Request a sample report

US engineering services outsourcing market – Company Analysis
Company Landscape - The US engineering services outsourcing market is fragmented, with the presence of several global as well as regional companies. A few prominent companies that offer us engineering services outsourcing in the market are Alten SA, Atos SE, Backoffice Pro, Capgemini Service SAS, Cognizant Technology Solutions Corp., Cyient Ltd., EPAM Systems Inc., FEV Consulting GmbH, Genpact Ltd., HCL Technologies Ltd., Honeywell International Inc., Infosys Ltd., Quest Global Services Pte. Ltd., Siemens AG, Sonata Software Ltd., SSA Business Solutions India, Tata Consultancy Services Ltd., Tech Mahindra Ltd., Wipro Ltd., and Flatworld Solutions Pvt. Ltd. and others.

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• Global competitiveness and key competitor positions
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial - Buy the report!

Company Offerings -

• Atos SE - The company offers engineering services outsourcing which modernizes knowledge and collaboration management.
• ALTEN Group - The company offers engineering and R and D outsourcing services such as Innovation and Digital Transformation, Product design and development Outsourced R and D, Manufacturing engineering, Supply chain, and Quality, Customer Services and Training, and Project Management and Change Management.
• Capgemini SE - The company offers IT systems for applications and infrastructures of a client or a group of clients and their associated business processes such as Business Process Outsourcing.

For details on the company and its offerings – Request a sample report

US Engineering Services Outsourcing Market - Segmentation Assessment

Segment Overview
Technavio has segmented the market based on sourcing (offshore and onshore), and end-user (telecom, automotive, healthcare, aerospace, and semiconductor and others)

The market share growth in the offshore segment will be significant during the forecast period.  The term offshore outsourcing refers to the transfer of all or part of an engineering process to another organization abroad. The sector's nominal growth is due to the ready access to a skilled and talented workforce in the US, as well as the availability of inexpensive and readily available resources. Hence, value-based, or collaborative partnerships between customer organizations and outsourced ESPs are expected to drive segment growth during the forecast period.

US Engineering Services Outsourcing Market – Market Dynamics

Key Driver

Cost savings from lower labor wages is a key factor driving market growth. Market growth is primarily driven by cost savings achieved by outsourcing work to less expensive workers and reducing spending on infrastructure, office space, operations, and staff. Additionally, the expansion of the U.S. economy has resulted in labor arbitrage, causing companies to outsource engineering services to easily take advantage of the skilled labor and advanced technology available in other countries. Hence, these factors are expected to drive market growth during the forecast period.

Major Trends

Innovation in engineering services outsourcing services is a major trend in the market. Outsourcing has become prevalent in automotive, manufacturing, and pharmaceutical industries, encompassing tasks from back-end operations to creative work. Businesses often outsource the development of advanced technologies like cloud-based delivery, cognitive process automation, quantum cryptography, security, and augmented reality. For manufacturing, aerospace, and BFSI sectors, outsourcing innovative functions has emerged as a cost-effective and strategic option. Thus, these factors are expected to drive market growth during the forecast period.

Significant Challenges

The risk of intellectual property theft and misuse is a significant challenge restricting market growth. When sharing or outsourcing operations, most US organizations adhere to strict non-disclosure policies and procedures to keep their R&D activities confidential. Preventing theft or leakage of crucial product designs and solutions is crucial for these businesses to retain their competitive edge. In addition, the fear of intellectual property theft or data breach has made companies cautious about sharing information about their next-generation products and solutions with external service providers. Hence, these factors are expected to restrict market growth during the forecast period.

Drivers, Trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this US Engineering Services Outsourcing Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the US engineering services outsourcing market between 2023 and 2027
• Precise estimation of the size of the US engineering services outsourcing market and its contribution to the market with a focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the engineering services outsourcing market across the US
• A thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of US engineering services outsourcing market companies.

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Table of Contents

1 Executive Summary

• 1.1 Market overview
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Country Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market Segmentation by Sourcing
• Exhibit 05: Executive Summary – Chart on Market Segmentation by End-user
• Exhibit 06: Executive Summary – Chart on Company Market Positioning

2 Market Landscape

• 2.1 Market ecosystem
• Exhibit 07: Parent market
• Exhibit 08: Market Characteristics

3 Market Sizing

• 3.1 Market Definition
• Exhibit 09: Offerings of companies included in the market definition

• 3.2 Market segment analysis 
• Exhibit 10: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 11: Chart on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 12: Data Table on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 13: Chart on US: Year-over-year growth 2022-2027 (%)
• Exhibit 14: Data Table on US: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Engineering services outsourcing market in US 2017 - 2021 
• Exhibit 15: Historic Market Size – Data Table on engineering services outsourcing market in US 2017 - 2021 ($ million)

• 4.2 Sourcing Segment Analysis 2017 - 2021 
• Exhibit 16: Historic Market Size – Sourcing Segment 2017 - 2021 ($ million)

• 4.3 End-user Segment Analysis 2017 - 2021 
• Exhibit 17: Historic Market Size – End-user Segment 2017 - 2021 ($ million)

5 Five Forces Analysis

• 5.1 Five forces summary
• Exhibit 18: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 19: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 20: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 21: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 22: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry
• Exhibit 23: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition
• Exhibit 24: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by Sourcing

• 6.1 Market segments
• Exhibit 25: Chart on Sourcing - Market share 2022-2027 (%)
• Exhibit 26: Data Table on Sourcing - Market share 2022-2027 (%)

• 6.2 Comparison by Sourcing 
• Exhibit 27: Chart on Comparison by Sourcing
• Exhibit 28: Data Table on Comparison by Sourcing

• 6.3 Offshore - Market size and forecast 2022-2027 
• Exhibit 29: Chart on Offshore - Market size and forecast 2022-2027 ($ million)
• Exhibit 30: Data Table on Offshore - Market size and forecast 2022-2027 ($ million)
• Exhibit 31: Chart on Offshore - Year-over-year growth 2022-2027 (%)
• Exhibit 32: Data Table on Offshore - Year-over-year growth 2022-2027 (%)

• 6.4 Onshore - Market size and forecast 2022-2027 
• Exhibit 33: Chart on Onshore - Market size and forecast 2022-2027 ($ million)
• Exhibit 34: Data Table on Onshore - Market size and forecast 2022-2027 ($ million)
• Exhibit 35: Chart on Onshore - Year-over-year growth 2022-2027 (%)
• Exhibit 36: Data Table on Onshore - Year-over-year growth 2022-2027 (%)

• 6.5 Market opportunity by Sourcing 
• Exhibit 37: Market opportunity by Sourcing ($ million)
• Exhibit 38: Data Table on Market opportunity by Sourcing ($ million)

7 Market Segmentation by End-user

• 7.1 Market segments
• Exhibit 39: Chart on End-user - Market share 2022-2027 (%)
• Exhibit 40: Data Table on End-user - Market share 2022-2027 (%)

• 7.2 Comparison by End-user 
• Exhibit 41: Chart on Comparison by End-user
• Exhibit 42: Data Table on Comparison by End-user

• 7.3 Telecom - Market size and forecast 2022-2027 
• Exhibit 43: Chart on Telecom - Market size and forecast 2022-2027 ($ million)
• Exhibit 44: Data Table on Telecom - Market size and forecast 2022-2027 ($ million)
• Exhibit 45: Chart on Telecom - Year-over-year growth 2022-2027 (%)
• Exhibit 46: Data Table on Telecom - Year-over-year growth 2022-2027 (%)

• 7.4 Automotive - Market size and forecast 2022-2027 
• Exhibit 47: Chart on Automotive - Market size and forecast 2022-2027 ($ million)
• Exhibit 48: Data Table on Automotive - Market size and forecast 2022-2027 ($ million)
• Exhibit 49: Chart on Automotive - Year-over-year growth 2022-2027 (%)
• Exhibit 50: Data Table on Automotive - Year-over-year growth 2022-2027 (%)

• 7.5 Healthcare - Market size and forecast 2022-2027 
• Exhibit 51: Chart on Healthcare - Market size and forecast 2022-2027 ($ million)
• Exhibit 52: Data Table on Healthcare - Market size and forecast 2022-2027 ($ million)
• Exhibit 53: Chart on Healthcare - Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Healthcare - Year-over-year growth 2022-2027 (%)

• 7.6 Aerospace - Market size and forecast 2022-2027 
• Exhibit 55: Chart on Aerospace - Market size and forecast 2022-2027 ($ million)
• Exhibit 56: Data Table on Aerospace - Market size and forecast 2022-2027 ($ million)
• Exhibit 57: Chart on Aerospace - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Aerospace - Year-over-year growth 2022-2027 (%)

• 7.7 Semiconductor and others - Market size and forecast 2022-2027 
• Exhibit 59: Chart on Semiconductor and others - Market size and forecast 2022-2027 ($ million)
• Exhibit 60: Data Table on Semiconductor and others - Market size and forecast 2022-2027 ($ million)
• Exhibit 61: Chart on Semiconductor and others - Year-over-year growth 2022-2027 (%)
• Exhibit 62: Data Table on Semiconductor and others - Year-over-year growth 2022-2027 (%)

• 7.8 Market opportunity by End-user 
• Exhibit 63: Market opportunity by End-user ($ million)
• Exhibit 64: Data Table on Market opportunity by End-user ($ million)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 65: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Drivers, Challenges, and Trends

• 9.1 Market drivers

• 9.2 Market challenges

• 9.3 Impact of drivers and challenges 
• Exhibit 66: Impact of drivers and challenges in 2022 and 2027

• 9.4 Market trends

10 Company Landscape

• 10.1 Overview

• 10.2 Company landscape 
• Exhibit 67: Overview on Criticality of inputs and Factors of differentiation

• 10.3 Landscape disruption
• Exhibit 68: Overview on factors of disruption

• 10.4 Industry risks
• Exhibit 69: Impact of key risks on business

11 Company Analysis

• 11.1 Companies covered 
• Exhibit 70: Companies covered

• 11.2 Market positioning of companies 
• Exhibit 71: Matrix on company position and classification

• 11.3 Alten SA
• Exhibit 72: Alten SA - Overview
• Exhibit 73: Alten SA - Product / Service
• Exhibit 74: Alten SA - Key news
• Exhibit 75: Alten SA - Key offerings

• 11.4 Atos SE
• Exhibit 76: Atos SE - Overview
• Exhibit 77: Atos SE - Business segments
• Exhibit 78: Atos SE - Key news
• Exhibit 79: Atos SE - Key offerings
• Exhibit 80: Atos SE - Segment focus

• 11.5 Capgemini Service SAS 
• Exhibit 81: Capgemini Service SAS - Overview
• Exhibit 82: Capgemini Service SAS - Business segments
• Exhibit 83: Capgemini Service SAS - Key news
• Exhibit 84: Capgemini Service SAS - Key offerings
• Exhibit 85: Capgemini Service SAS - Segment focus

• 11.6 Cognizant Technology Solutions Corp. 
• Exhibit 86: Cognizant Technology Solutions Corp. - Overview
• Exhibit 87: Cognizant Technology Solutions Corp. - Business segments
• Exhibit 88: Cognizant Technology Solutions Corp. - Key news
• Exhibit 89: Cognizant Technology Solutions Corp. - Key offerings
• Exhibit 90: Cognizant Technology Solutions Corp. - Segment focus

• 11.7 EPAM Systems Inc.
• Exhibit 91: EPAM Systems Inc. - Overview
• Exhibit 92: EPAM Systems Inc. - Business segments
• Exhibit 93: EPAM Systems Inc. - Key offerings
• Exhibit 94: EPAM Systems Inc. - Segment focus

• 11.8 Genpact Ltd.
• Exhibit 95: Genpact Ltd. - Overview
• Exhibit 96: Genpact Ltd. - Business segments
• Exhibit 97: Genpact Ltd. - Key news
• Exhibit 98: Genpact Ltd. - Key offerings
• Exhibit 99: Genpact Ltd. - Segment focus

• 11.9 HCL Technologies Ltd.
• Exhibit 100: HCL Technologies Ltd. - Overview
• Exhibit 101: HCL Technologies Ltd. - Business segments
• Exhibit 102: HCL Technologies Ltd. - Key news
• Exhibit 103: HCL Technologies Ltd. - Key offerings
• Exhibit 104: HCL Technologies Ltd. - Segment focus

• 11.10 Honeywell International Inc. 
• Exhibit 105: Honeywell International Inc. - Overview
• Exhibit 106: Honeywell International Inc. - Business segments
• Exhibit 107: Honeywell International Inc. - Key news
• Exhibit 108: Honeywell International Inc. - Key offerings
• Exhibit 109: Honeywell International Inc. - Segment focus

• 11.11 Infosys Ltd.
• Exhibit 110: Infosys Ltd. - Overview
• Exhibit 111: Infosys Ltd. - Business segments
• Exhibit 112: Infosys Ltd. - Key news
• Exhibit 113: Infosys Ltd. - Key offerings
• Exhibit 114: Infosys Ltd. - Segment focus

• 11.12 Quest Global Services Pte. Ltd. 
• Exhibit 115: Quest Global Services Pte. Ltd. - Overview
• Exhibit 116: Quest Global Services Pte. Ltd. - Product / Service
• Exhibit 117: Quest Global Services Pte. Ltd. - Key offerings

• 11.13 Siemens AG
• Exhibit 118: Siemens AG - Overview
• Exhibit 119: Siemens AG - Business segments
• Exhibit 120: Siemens AG - Key news
• Exhibit 121: Siemens AG - Key offerings
• Exhibit 122: Siemens AG - Segment focus

• 11.14 Sonata Software Ltd.
• Exhibit 123: Sonata Software Ltd. - Overview
• Exhibit 124: Sonata Software Ltd. - Business segments
• Exhibit 125: Sonata Software Ltd. - Key news
• Exhibit 126: Sonata Software Ltd. - Key offerings
• Exhibit 127: Sonata Software Ltd. - Segment focus

• 11.15 Tata Consultancy Services Ltd. 
• Exhibit 128: Tata Consultancy Services Ltd. - Overview
• Exhibit 129: Tata Consultancy Services Ltd. - Business segments
• Exhibit 130: Tata Consultancy Services Ltd. - Key news
• Exhibit 131: Tata Consultancy Services Ltd. - Key offerings
• Exhibit 132: Tata Consultancy Services Ltd. - Segment focus

• 11.16 Tech Mahindra Ltd.
• Exhibit 133: Tech Mahindra Ltd. - Overview
• Exhibit 134: Tech Mahindra Ltd. - Business segments
• Exhibit 135: Tech Mahindra Ltd. - Key offerings
• Exhibit 136: Tech Mahindra Ltd. - Segment focus

• 11.17 Wipro Ltd.
• Exhibit 137: Wipro Ltd. - Overview
• Exhibit 138: Wipro Ltd. - Business segments
• Exhibit 139: Wipro Ltd. - Key news
• Exhibit 140: Wipro Ltd. - Key offerings
• Exhibit 141: Wipro Ltd. - Segment focus

12 Appendix

• 12.1 Scope of the report

• 12.2 Inclusions and exclusions checklist 
• Exhibit 142: Inclusions checklist
• Exhibit 143: Exclusions checklist

• 12.3 Currency conversion rates for US$ 
• Exhibit 144: Currency conversion rates for US$

• 12.4 Research methodology
• Exhibit 145: Research methodology
• Exhibit 146: Validation techniques employed for market sizing
• Exhibit 147: Information sources

• 12.5 List of abbreviations
• Exhibit 148: List of abbreviations

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide 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 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.

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Website: www.technavio.com

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