Global Engineering Services Market to Reach US$1.0 Trillion by 2015, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global outlook on the Engineering Services Industry. Major factors driving growth in the global engineering services market include increasing competition, growing demand for corporate profitability, and the emergence of new employment-related dynamics. Other factors spurring growth in the engineering services market, and in particular engineering services outsourcing market, include faster time-to-market for products, expansion of engineering capabilities, and gaining access to new markets.

Engineering Services: A Global Outlook

Follow us on LinkedIn – Engineering services sector benefited substantially from the expansion of engineering industry into various international markets over the years. With the globalization of engineering work, firms have gained access to international markets, along with the improved flow of goods, knowledge, and services. As the global demand for engineering services increases, emerging markets, including India, are expected to play a significant role in addressing such needs, by not only offering cost benefits, but also allowing firms to gain competitive edge through specialized capabilities. Global spending on engineering services is projected to witness steady growth in the coming years. At present, high-tech/telecom and automotive sectors account for a major share of the total spending on engineering services, with the remaining share held by aerospace, utilities, industrial, construction, and defense sectors.

Engineering services outsourcing market is expected to become increasingly competitive in future. Formerly, production and low-end operations comprised the foremost engineering activities to be outsourced to the international markets, as part of a move towards globalization. The trend changed with firms opting to outsource other engineering functions, including high-value operations, to overseas markets. However, technology-centric firms, with engineering as core business activity, continued to safeguard their expertise, limiting operations within the domicile country. Majority of the high-end or advanced engineering operations continue to be retained in the company’s home country. However, the trend is changing as companies across the world exhibit their expertise in handling all types of engineering processes. Asian countries, in particular India and China, are competing fiercely in the global engineering services outsourcing market.

Several innovative technologies are finding use in the product design and development operations as measures to improve collaborative engineering, and for enhancing functionality and performance of the products. Apart from improving product safety and reliability, the incorporation of latest technologies facilitates the lowering of product design costs, and ensures compliance with various regulatory specifications. Companies providing engineering services need to adopt technologies, which facilitate the convenient, faster, and safer transfer of data. In addition, the focus is being shifted to collaborative working technologies that enable global teams to function concurrently.

The automotive industry was among the foremost to recognize the potential benefits offered by outsourcing of engineering services to low-cost emerging markets such as India. This realization led to the first move towards outsourcing of operations to India, in the form of captives of automotive companies. The distinct change in strategic view of companies is expected to emerge as the major driver for the outsourcing market. Thus, competitive pressures and the need to expand business activities are prompting large companies to offshore their engineering operations. One of the few markets to successfully weather the recessionary blues and emerge stronger from economic crisis is the outsourced engineering sector. With the recession having played out its part in full proportion, and global economy staging a recovery in 2010, the concept of outsourcing continues to find favor among an increasing number of companies. This trend can be mainly attributed to the rise in consumer confidence as well as the proven cost advantages and validity of the concept.

The research report titled “Engineering Services: A Global Outlook” announced by Global Industry Analysts, Inc., provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report briefly discusses the trends in the engineering services market, with a special focus on outsourcing of engineering services, alongside services market dynamics in various sectors. The report also recapitulates recent noteworthy mergers, acquisitions, and other strategic developments. Regional markets briefly abstracted include the United States, Canada, France, Germany, UK, China, and India among others. Market discussions in the report are punctuated with fact-rich market data tables. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Engineering_Services_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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