4 key trends within the Engineering Services market

Companies often require a variety of specialized engineering services when developing a new product, process, or a service. This includes concept development, design elements, prototyping of the product or service itself, plus the infrastructure, equipment, and processes involved in their manufacture, maintenance, or delivery.

The commoditization of IT, maturity of services, adoption of new technology trends like Internet of Things (IoT), analytics, and sustainability-related technologies fuel growth in engineering services. Unlike in the past, India-based global service providers (GSPs) have been considered for more strategic roles like co-innovation and joint development projects, which are based on a risk-sharing model.
Some key trends for the growth of engineering services providers are:
• IoT Opens New Avenues
Internet of Things (IoT), digital manufacturing and digital platforms, engineering analytics, and mobility are areas which will witness high growth in the near-term. These technologies will in turn fuel the growth of engineering services. Investments in new technologies such as 3D printing, connected plants, etc., in the manufacturing engineering space is increasing.
• Service Providers May Get Opportunities Back Home
The majority of Indian GSPs work for the overseas market. But ARC expects a boost in the engineering services space by GSPs in their home country owing to the “Make in India” initiative. With the opening of many new manufacturing setups, India will offer a plethora of opportunities for engineering services providers.

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There is a major shift in the expectation of end-customers from the GSPs based in India. Evolving from a cost-effective outsourcing destination to developing end-to-end product/process, GSPs in India continue to evolve and adapt in new ways. Some key trends highlighted for the adoption of engineering services by end-users are:

• End-Users of Technology need Engineering Service Partners in Innovation
Engineering services provide concept development, product and industrial design, process automation, mechanical, electrical, embedded software, maintenance, asset management, product lifecycle related services, detailed engineering, testing, and prototyping. These services are critical for any business, and end-users recognize GSPs as value engineering partners, who assist in problem solving as a trusted partner with a business model that suits them. Risk/reward model where payment schedules are mutually defined at stages, to suit both original equipment manufacturers (OEM) and the supplier of services. Risk-reward model gets deployed especially when project timelines are tight, outcome based, and when cost control is critical.

• Smart Manufacturing Posing more Challenges for end-users
Internet of Things (IoT), digital manufacturing & digital platforms, analytics, and mobility are witnessing high growth. These technologies are also fueling the growth of engineering services. Thus, suppliers who can assist its customers to reach the next level in becoming “Smart” have an advantage. Suppliers need to invest in learning new technologies routes for Greenfield or brownfield projects with enabling technologies such as 3D printing, connected plants etc.

For a detailed understanding of key trends in engineering services, ARC Advisory Group has recently published two new research reports on Engineering Services – Of this, one is focused on suppliers and other on end-users of technology.
• “Engineering Services by Global Service Providers based in India” (http://www.arcweb.com/market-studies); which details out market trends, and factors contributing and inhibiting growth of engineering service providers.
• “Engineering Services Evaluation and Selection Guide for Selecting Indian GSPs” (http://www.arcweb.com/technology-evaluation-and-selection); is a guide designed to help industrial organizations make informed, impartial, fact-based engineering service provider selection decisions. The guide provides an in-depth discussion of the overall engineering services market, profiles of the leading engineering services suppliers based in India, recommended selection criteria, and a wealth of other relevant information.

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About ARC Advisory Group: Founded in 1986, ARC Advisory Group is a Boston based leading technology research and advisory firm for industry and infrastructure.
For further information or to provide feedback on this article, please contact nsingh@arcweb.com

3 Comments
  1. Gaian
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