ISG Research Shows Engineering Services Outsourcing Market Poised for Significant Growth

Research company Information Services Group announced its finding regarding the Engineering Services Outsourcing (ESO) market for 2014 and beyond. Analysts predict this market will see significant growth over the next several years.

The report discusses that total spending on engineering services in 2012 was $930 billion. Additionally, outsourcing on services was $325 billion in 2012 and is expected to triple or quadruple over the next several years.

“The key factors driving growth in ESO are long-term economic pressures to reduce costs, as well as the need to shorten product cycle time,” said Steven Hall, partner, ISG. “At the same time, the increasing maturity of the ESO provider market is making outsourcing move viable and attractive for a growing number of client organizations.”

Further factors that are contributing to the growth of engineering services outsourcing include access to global talent, pressure to localize production and shrinking research and development budgets.

For more information, visit ISG.