The engineering services outsourcing (ESO) market advanced unexpectedly in the recent two decades, from offering engineering services from its center of operations to introducing hubs of excellence at offshore locations. Globalization has compelled the multiple industries to reconsider international delivery centers in their corporate strategies. The multiple service capabilities of the Engineering Service Providers (ESPs), right from product conceptualization to after-service support, has led to their successful operations in numerous industries, one of them being the construction sector. Infrastructure development is pivotal for all other industries and businesses, as the economic value generation is indirectly dependent on the infrastructure, constructed assets, or the built environment. This creates the need for adequate infrastructure premises that would support operations of other industries, and subsequently the need for engineering services.
The construction engineering services outsourcing market has witnessed a paradigm shift, from procuring on-site services to emphasizing technologically advanced designing, delivery, and reformation phases. The rate of technology adoption in the civil industry has been slower compared to other industries. However, the continual efforts made by the ESPs, to gain a competitive edge over their counterparts, have resulted in the intervention of technologically advanced solutions into their service offerings. One of these is the use of Augmented Reality (AR) and 3D visualization techniques to create prototypes of the infrastructure, which would intensify the drawings and attract an end customer’s interest in the simulation of structural changes.
The rising investments in infrastructure development, by both developed and emerging economies, have led to the growth of construction engineering services outsourcing. The civil industry is very diversified, where the participants are responsible for constructing and designing hospitals, malls, laboratories, warehouses, retail stores, housing, and various other infrastructure facilities. Furthermore, the participants are also involved in building infrastructure and public utilities such as roads, dams, rails, and sewages. Green construction, which aims to lower the carbon footprint during the development of any infrastructure, is another trend surfacing the construction engineering services outsourcing market. The rising environmental concerns and stringent emission norms imposed by governments and regulatory bodies worldwide, to conserve the environment while building new infrastructure are intensifying the economic opportunities for the industry participants in the construction ESO market. These players collaborate with the end users on a contractual basis for offering them customized services based on their schedule, budgetary concerns, vision, and required needs.
Furthermore, the prevalence of digital transformation technologies is spearheading the demand for engineering services outsourcing in the civil industry. The comprehensive service portfolios of the ESPs include a certain degree of digitally advanced solutions to offer quicker project execution at a higher level of accuracy. For instance, IBM delivers solutions to increase capital projects, facility maintenance, and enable space management. The amalgamation of agile technologies such as 5G, Internet of Things (IoT), Big Data, Artificial Intelligence (AI), and connected sensors has led to the emergence of the smart city concept to ease the way of living for the urban population. These advanced urban environments are expected to create the need for civil ESPs to assist end customers with cutting-edge solutions featuring advanced capabilities, thereby generating enormous growth opportunities for the participants in the construction ESO over the next few years.
The leading players of the construction engineering services outsourcing market are Bechtel Corporation, Citec Oy Ab, Enventure Engineering LLP, and Mott MacDonald. The supplier and end user partnerships help coordinate business processes and activities to minimize overall costs by streamlining work processes and maximizing efficiency. For instance, in June 2018, Bechtel Corporation collaborated with Cheniere Energy, Inc, one of the prominent Liquefied Natural Gas (LNG) company based in the U.S. As per the collaboration, the former company designed and built docking facilities near Corpus Christi, Texas, U.S. along with three LNG trains. This tends to be the first-ever LNG export facility in that region in the last 50 years. Additionally, civil ESO players are forming alliances to augment their presence by providing services across a vast market space and to improve client-customer rapport.
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