Engineering services outsourcing (ESO) refers to outsourcing engineering activities such as design, software architecture, simulation, R&D consulting, and product development to specialized vendors or engineering services providers (ESPs). The ESO market has grown significantly as requirements are at such a level that they need core competencies in niche markets.
Original equipment manufacturers (OEMs) have a growing demand for skilled people and experienced technical partners due to the increasing complexity of today’s technologies and engineering. Since custom engineering services providers continually upgrade their capabilities to keep pace with technological advances and ever-changing consumer demands, a strategic partnership is essential to gain market leadership and speed up development time.
Over the past few years, more and more OEMs are partnering with ESPs to speed up development, time-to-market, and 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.
As mentioned above, with technological advances, an OEM’s in-house staff cannot have the expertise and efficiency to design and manufacture all or most components needed 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.
Custom engineering services and R&D outsourcing can assist with product design, manufacturing engineering, customer services, training, project management, and change management. In this article, you can gain more insight into outsourcing engineering services for high-tech product development.
ESPs like Orthogone help coordinate business processes and activities, minimize overall costs by streamlining work processes, and help maximize OEM 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.