DALLAS, July 1, 2020 /PRNewswire-PRWeb/ -- Everest Group today released the second annual edition of "Everest Group Engineering Services Top 50™," a ranking of the world's largest third-party providers of engineering services (ES). The ranking is based on revenues and year-on-year growth.
Topping the 2020 list of ES providers are these 10 leaders:
1. Altran (part of Capgemini)
2. Alten
3. HCL Technologies
4. AFRY (ÅF Pöyry)
5. AVL
6. AKKA Technologies
7. Tata Consultancy Services
8. Accenture
9. DXC Technology
10. Wipro
*** Download a complimentary copy of the 2020 Everest Group ES Top 50 list and analysis ***
Engineering services include all activities that support the design, development, testing and management of products, both hardware and software.
The Everest Group Engineering Services Top 50 represented more than $US 45 billion of outsourced spending. The global ES industry grew 13% in 2019, driven by enterprises' need for support in the form of scale, skills, technologies and intellectual property. The ES market consolidated significantly in 2019, with many ES providers acquiring others to enhance their competitive position and drive revenue growth.
"We expect engineering service providers to assume an increasingly significant role as enterprises turn to them for high-end engineering activities," said Akshat Vaid, vice president at Everest Group. "In 2019, service providers undertook many strategic initiatives to gain competitive advantage, such as investing in digital engineering capabilities; scaling their talent pool in emerging skill segments and technologies to address the supply gap for customers; and setting up Centers of Excellence, innovation labs and new centers to strengthen their offerings portfolio. Several engineering services firms also merged and acquired others to grow their business. As the COVID-19-triggered economic slowdown drives firm valuations lower, we expect M&A activity to increase, driving further consolidation in the ES industry in 2020. We also expect significant churn in the existing outsourcing relationships in 2020 as enterprises across industry verticals look at vendor consolidation as a strategic lever for structural cost savings "
Other highlights:
- The Top 5 companies based on revenue alone are Altran, Alten, HCL Technologies, AVL and AFRY (ÅF Pöyry).
- The Top 5 fastest growing ES companies were DXC Technology, AFRY (ÅF Pöyry), Infogain, Globant and HCL Technologies.
- Exiting the list were these five companies: Luxoft, APL, Sonata Software, Cybage and Semcon.
- Top risers (companies whose position in the list advanced the most) include DXC Technology, QuEST Global, Belcan, Infosys, Pactera, Etteplan, Globant, Ferchau, EPAM and P3.
- Seven service providers in the list experienced decline in revenue ranging from -0.3 to -9%. The decline was attributable to multiple factors, but the most common reason was economic slowdown in specific industry sectors such as automotive, aerospace and defense, and manufacturing.
- Europe continues to hold a major share (48%) of the providers in the Top 50 list, followed by Asia Pacific at 28% and North America at 22%.
The Everest Group Engineering Services Top 50 is based on both revenues 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 consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in 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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SOURCE Everest Group
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