DALLAS, June 3, 2021 /PRNewswire-PRWeb/ -- Everest Group today released the third annual edition of the Everest Group Engineering Services Top 50™, a ranking of the world's largest third-party providers of engineering services (ES). ES includes all activities that support the design, development, testing and management of commercial products, both hardware and software.
Engineering Services Top 50 companies had a combined revenue of US$46.7 billion in 2020. Mentioned below are the top 10 ES providers from the 2021 list:
1. Capgemini
2. HCL Technologies
3. Alten
4. Accenture
5. Tata Consultancy Services
6. AVL
7. AFRY (ÅF Pöyry)
8. Cognizant
9. Wipro
10. Globant
Capgemini's acquisition of Altran propelled its 21-place rise, ensuring its top position in the 2021 Top 50 list.
"As expected, mergers and acquisitions played a significant role in changing the landscape of the Engineering Services Top 50 list this year," said Akshat Vaid, vice president at Everest Group. "The ES market witnessed many service providers acquiring businesses to build capabilities, achieve business scale and generate greater access. In fact, this growth strategy was used by 60% of our top 10 firms, each making key acquisitions in 2020. We expect this consolidation of supplier base to play out further over the next few years."
*** Download a complimentary copy of the 2021 Everest Group ES Top 50 list and analysis. ***
2021 ES Top 50 List Marked by Volatility Due to Pandemic, M&A Activity
In 2020, ES providers showcased high client commitment amid the COVID-19 crisis, as they successfully shifted 90-95% of their engineering talent to remote delivery within weeks. Despite these efforts, however, outsourcing slowed down significantly for a large part of 2020 due to canceled projects and decision-making delays. In particular, the slowdown in sectors such as automotive, aerospace and defense, and industrial products forced enterprises to cut back on their engineering, research and development (ER&D) spending, impacting ES providers catering to these sectors. Over 50% of the companies featured in the top 50 list experienced a decline in revenues during this time period. This decline was more prominent for pure-play ES providers.
Signs of recovery started appearing toward Q4 2020, when several service providers entered into US$10 million+ deals, many of which centered around digital engineering themes.
The slowdown's impact and the pace of recovery have varied significantly for service providers, depending on their exposure across verticals and service functions. These factors, combined with continued M&A activity during 2020, have led to significant changes in how ES providers fare against each other, with five firms maintaining status quo in the ranking.
Other highlights:
- The Top 5 companies based on revenue alone are Capgemini, HCL Technologies, Alten, AVL and AFRY (ÅF Pöyry).
- The Top 5 fastest growing ES companies were Capgemini, Infogain, Globant, Mindtree and Endava.
- With continued investments in digital engineering, the proportion of broad-based service providers featured in the ES Top 50 list continued to grow, reaching 40% in 2020.
- Europe continues to hold a major share (48%) of the providers in the Top 50 list. The share of APAC- and North America-based ES providers stood at 28% and 22% respectively.
The Everest Group Engineering Services Top 50 list is based on calendar year revenue and year-on-year growth. Revenues comprise 75% of the composite score used for ranking. Growth comprises 25% and has two sub-parameters: absolute growth (measured as change in ES revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in ES revenue and accounting for the final 12.5% of the composite score).
About Everest Group
Everest Group is a research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global companies, service providers, and investors. Clients use our services to guide their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com
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Media Contact
Andrea Riffle, Everest Group, 9548018474, [email protected]
Jennifer Fowler, Cathey Communications, 8654056380, [email protected]
SOURCE Everest Group
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