The global engineering services outsourcing market size is anticipated to gain USD 9,398.95 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to record a CAGR of 24.4% from 2023 to 2030. The increasing demand for Information Technology (IT) services by various industries, such as automotive, manufacturing, retail & e-commerce, media & entertainment, and others, is exponentially driving the market growth.
The growing need for outsourcing services by companies to cut costs and optimally utilize the saved costs is expected to drive the market over the forecast period. The market has constantly been evolving in line with advancements in fields like the internet of things (IoT), connected computing, artificial intelligence (AI), and the sensing element, among other technologies. The intensifying competition to provide cutting-edge resolutions is driving service providers to finance aggressively in research & development.
Major ESO companies are also trying hard to emphasize mergers and acquisitions and bolstering the existing tie-ups with their clients to tap new business opportunities. For instance, in April 2022, the Kansas Department of Labor, a state agency for economic growth, chose Tata Consultancy Services Limited, an enterprise solutions provider, to build and run an advanced unemployment insurance system. The latter company is expected to support the state agency with the maintenance of its online systems and provide assistance during downtimes.
With the outburst of COVID-19, many organizations have faced the following lockdowns executed in almost all countries worldwide at the start of 2020. The aerospace industry has been adversely affected among the industry verticals due to the non-permanent shutdown of enterprises, production facilities, and daily operational logistics. On the other hand, the healthcare industry has been relatively unchanged as healthcare companies mainly worked on creating and developing advanced and custom Personal Protective Equipment (PPE) kits.
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The off-shore part is expected to witness significant growth corresponding to the on-shore part due to the international inflation rates, high mixed rates, training costs, and increasing preference for outsourcing to on-shore partners.
The healthcare segment is projected to grow at a compounded annual growth rate of more than 18% from 2023 to 2030. The growth can be propelled through aggressive investments in cutting-edge medical equipment, laboratories, and medications.
Designing, based on services, is expected to witness growth at a notable CAGR over the forecast period. The increase can propel the growing sophistication of designs and the demand to reduce costs by outsourcing design to a professional but somewhat low-cost workforce.
The Asia Pacific ESO market is anticipated for the highest revenue share of over 41.0% in 2023, with the effortless availability of fairly low-cost and skilled aids in countries like India, China, the Philippines, and other East Asian countries
Grand View Research has segmented the global engineering services outsourcing market based on services, location, application, and region:
Engineering Services Outsourcing Service Outlook (Revenue, USD Billion, 2018 - 2030)
Engineering Services Outsourcing Location Outlook (Revenue, USD Billion, 2018 - 2030)
Engineering Services Outsourcing Application Outlook (Revenue, USD Billion, 2018 - 2030)
Energy & Utilities
Construction & Infrastructure
Engineering Services Outsourcing Regional Outlook (Revenue, USD Million, 2018 - 2030)
Middle East and Africa (MEA)
List of Key Players in Engineering Services Outsourcing Market
HCL Technologies Limited
Tata Consultancy Services Limited.
Tech Mahindra Limited
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