Increasing technological needs of OEMs
Engineering services outsourcing (ESO) refers to the outsourcing of some engineering activities such as design, simulation, consulting, and product development to specialized vendors or engineering services providers (ESPs). The ESO market has grown significantly as requirements are such at a level that they need core competencies in niche markets.
Original equipment manufacturers (OEMs) have a growing demand for skilled individuals and tech partners due to the increasing complexity of today’s technologies and engineering.
Engineering services providers are continually improving their digital capabilities to keep up with technological advances, but also ever-changing consumer demands.
A globalized marketplace
This past few years, more and more OEMs are partnering with ESPs to speed up development and time-to-market, but also to optimize R&D processes.
According to a report from Grand View Research, “The global engineering services outsourcing market… is expected to expand at a compound annual growth rate (CAGR) of 22.9% from 2021 to 2028. “
The market has evolved significantly over the past two decades, from offering engineering services from headquarters to launching key operations hubs in developing countries. Globalization has pushed leading players to incorporate world-class delivery mechanisms into their business strategies.
Engineering outsourcing services
As mentioned above, with advances in technology, an OEM’s in-house staff cannot have the expertise and efficiency to design and manufacture all or most of the components it needs to make a finished product.
An increasing number of companies are choosing to keep their internal staff focused on their core business, and partner with an outsourced engineering team to provide technical expertise.
Engineering and R&D outsourcing services offer product design & development, assist in manufacturing engineering, provide customer services & training, and can help in project management & change management.
Learn more about the benefits of partnering with a leading software development company.
ESPs like Orthogone help coordinate the business processes and activities, minimize overall costs through streamlining of work processes and help companies maximize OEM’s efficiency in the marketplace.
We developed a specific model used by both OEMs and leading startups. By becoming more involved in project management and product design, while taking responsibility for a substantial portion of the work, we can help speed up development. To learn more about partnering with Orthogone to drive innovation, contact us.