In 2024, software and internet companies faced a volatile landscape marked by persistent economic uncertainty, inflationary pressures, and an increasingly complex regulatory environment. Yet, amid these headwinds, firms remained committed to future-focused investments, particularly in generative AI, real-time data systems, cloud-native infrastructures, and secure platform engineering. The rise of multimodal AI, zero-trust architectures, and sustainable computing reflects the industry’s enduring emphasis on innovation and resilience. This report provides an in-depth analysis of Engineering Research and Development (ER&D) spending and outsourcing strategies among the top 100 global software and internet firms. It offers insights into how companies are allocating budgets, scaling innovation, and leveraging external partnerships to advance product and platform development. By examining trends across company size, geography, and key verticals, this research identifies strategic patterns in spend intensity, outsourcing behaviors, and modernization priorities. Additionally, it offers insights into future growth trajectories, emerging trends, and their strategic implications for providers, enabling them to navigate the shifting market landscape and seize new opportunities.

Software product management is evolving rapidly as organizations push for faster innovation, sharper customer focus, and measurable business outcomes. Product managers are no longer just roadmap custodians; they now orchestrate complex workflows, integrate fragmented toolchains, and lead in navigating rising delivery expectations. Their role now demands doing more with less, across an increasingly interconnected and high-pressure environment. Systems of Execution (SoE) represent a new operating paradigm that combines AI, automation, and orchestration to streamline execution across the product lifecycle. By linking insights to decisions and decisions to actions, SoE empower product teams to act with real-time intelligence and remain closely aligned with strategic goals. In this Viewpoint, we examine product managers’ evolving responsibilities, the systemic challenges constraining modern product organizations, SoE’s transformative potential, and how leading enterprises are adopting SoE to improve delivery speed, cross-functional alignment, and business impact. Scope Industry: all Geography: global Contents In this viewpoint, we examine: The product management industry’s evolution and its key challenges SoE as a paradigm that unifies AI, automation, and orchestration for smarter execution How product organizations can implement SoE to streamline workflows, enhance speed, and stay aligned with business goals

In the product engineering domain, software remains the largest expenditure, growing despite economic slowdowns, geopolitical tensions, and talent shortages. Key drivers include a shift toward platform-based business models, increased adoption of AI- / gen AI-augmented secure products, a focus on sustainability, and improved customer and developer experiences. Enterprises now seek strategic partners that can offer not just engineering talent, but also cost savings, speed, and innovation. In this report, we delve into the Software Product Engineering Services (SPES) market, analyzing its size, growth dynamics, and outsourcing trends across key verticals. The report sheds light on SPES spending patterns, growth rates, and the tailwinds and headwinds shaping its trajectory. Additionally, it provides insights into the future growth outlook, emerging themes, and their implications for providers, helping them navigate the evolving landscape and capitalize on new opportunities. Scope Industry: SPES Geography: global Contents In this report, we examine: SPES market size, growth, spending, and growth rate across verticals Tailwinds and headwinds to future growth SPES outsourcing market size, growth, and trends across verticals Growth outlook for SPES and prominent themes Implications for providers Membership(s) Software Product Engineering Services Sourcing and Vendor Management

In the product engineering domain, software remains the largest expenditure, continuing its upward momentum in the face of recessionary pressures, geopolitical conflicts, talent shortages, and delayed enterprise decision-making. Despite these macroeconomic challenges, several key factors are driving software R&D’s evolution. These include a shift toward platform-based business models, AI- / gen AI-augmented secure products’ increased adoption, a strong focus on sustainability, and a heightened emphasis on customer and developer experiences. As enterprises navigate these transformative trends amid economic uncertainty, their expectations from providers are evolving. They now seek strategic partners that can offer not just engineering talent, but also cost savings, speed, and innovation. This report, the fifth edition of Everest Group’s Software Product Engineering Services PEAK Matrix® Assessment, evaluates 37 engineering service providers, positioning them on the PEAK Matrix&® framework and offering enterprise sourcing considerations. Scope Industry: Software Product Engineering Services (SPES) Geography: global The study is based on RFI responses from providers, interactions with their SPES leadership, client reference checks, and an ongoing analysis of the SPES market Contents In this report, we examine: Everest Group’s PEAK Matrix® evaluation of SPES providers The characteristics of Leaders, Major Contenders, and Aspirants Providers’ key strengths and limitations, market impact, and vision and capabilities Membership(s) Software Product Engineering Services Sourcing and Vendor Management

In the product engineering space, software remains the largest expense, although its growth has slowed recently. This deceleration is largely due to economic headwinds, such as decreased consumer confidence and tighter budgets, which have made enterprises and providers more cautious about investing in new technologies. Additionally, geopolitical conflicts, talent shortages, and delayed decision-making within enterprises have further contributed to this trend. Despite these challenges, the software R&D landscape continues to evolve, driven by several key trends. The increasing adoption of AI and generative AI is transforming product development, while a growing emphasis on sustainability is shaping both product design and delivery. Additionally, providers are focusing on enhancing the customer and developer experience to drive adoption and loyalty. To navigate this evolving landscape, businesses are also exploring platform-based business models to create scalable and flexible solutions. This compendium provides comprehensive and fact-based snapshots of 43 software product engineering service providers. Each profile offers a detailed overview of the provider’s software product engineering services, solutions offered, strategic partnerships and investments, market performance, and customer case studies. Scope Industry: software product engineering Geography: global This study is based on RFI responses from providers, interactions with their software product engineering services leadership, client reference checks, and Everest Group’s ongoing analysis of the software product engineering services market Contents In this report, we examine: The software product engineering services business, including vision and strategy, revenue and YoY growth, and revenue composition across geographies, industry segments, value chain functions, and buyer sizes Providers’ case studies and proprietary solutions Provider’s partnerships and investments in the software product engineering domain Software Product Engineering Services Outsourcing Excellence

In the product engineering space, software remains the largest area of expenditure, maintaining its upward trajectory despite a slower pace. This deceleration is primarily due to recessionary headwinds, geopolitical conflicts, talent shortages, and delayed decision-making within enterprises. Amid this macroeconomic turbulence, several themes continue to drive software R&D forward. These include transitioning to platform-based business models, increasing the adoption of AI- and gen AI-augmented secure products, prioritizing sustainability, and enhancing customer and developer experiences. The shift toward these transformative themes, coupled with the current economic climate, is significantly altering enterprises’ expectations from their providers. Rather than solely seeking providers focused on offering engineering talent, enterprises now aspire to engage with strategic partners capable of delivering savings, speed, and innovation simultaneously. This report, the fifth edition of Everest Group’s Software Product Engineering Services PEAK Matrix® Assessment, evaluates 43 engineering service providers, positioning them on the PEAK Matrix® framework and offering insights into enterprise sourcing considerations. Scope Industry: software product engineering Geography: global The study is based on RFI responses from providers, interactions with their software product engineering services leadership, client reference checks, and an ongoing analysis of the software product engineering services market Contents In this report, we examine: Everest Group’s services PEAK Matrix® evaluation of engineering service providers associated with software product engineering services The characteristics of Leaders, Major Contenders, and Aspirants Providers’ market impact and vision and capabilities Providers’ key strengths and limitations Membership(s) Software Product Engineering Services Outsourcing Excellence

The automotive industry is at an inflection point, where global sustainability concerns, increasing consumer demands, and rapid technological advancements have coalesced to propel rapid growth. In this dynamic landscape, the focus is shifting from conventional mobility solutions to a more captivating and immersive automotive experience. Automotive enterprises are now eagerly hopping on to this transformative paradigm, embracing the idea of enhancing customer experience and redefining the future of mobility. Some of the major areas of investment include: Autonomy Advancements: Investments in L3 to L5 autonomous technologies, intelligent adaptive cruise controls, safety systems, and sensor fusion tech to transform driving experiences Connected Ecosystems: Connectivity and data management are forging powerful collaborations between automotive players and players from diverse verticals such as fintech, insurance, technology, and telecommunication to bring in several after-sales services Software-Centricity: With the emergence of software-defined vehicles, there is an increased level of investments in software development and partnerships with technology players Electrification Imperative: The need to address environmental concerns and stringent governmental regulations has accelerated the investments in electric, hybrid, and fuel cell technologies This research, the fourth edition of Everest Group’s ACES Automotive Engineering Services PEAK Matrix® Assessment, evaluates 26 engineering service providers, features them on the PEAK Matrix®, and shares insights into enterprise sourcing considerations. The study is based on RFI responses from service providers, interactions with their automotive engineering leadership, client reference checks, and ongoing analysis of the engineering services market. Scope: This research studies the following service providers associated with automotive engineering services: Alten, Capgemini, HCLTech, KPIT, LTTS, TCS, Wipro, Akkodis, AVL, Bertrandt, Cognizant, Cyient, DXC Technologies, FEV, FPT, IAV, Infosys, NTT DATA, Tata Elxsi, Tata Technologies, Onward Technologies, Sasken, Semcon, Sigma Software Tech Mahindra, and T-Systems. Industry: Automotive Geography: Global Contents This report maps and covers: ACES Automotive Engineering Services PEAK Matrix® 2023 Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard capturing the relative assessment of each service provider’s vision & capability and market impact Providers’ strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Engineering Research and Development Sourcing and Vendor Management

Today, software has become essential to the operation of every company. The importance of software products for businesses, regardless of whether they are product- or service-focused, has been heightened by the increasing prevalence of platform-based business models. Given the rising importance of software, enterprises must continue to innovate their software products to remain competitive in the market and serve the evolving needs of users. Failure to do so may result in the premature obsolescence of their software products. Despite the clear benefits of innovation, many enterprises struggle to foster it and develop a cohesive Research and Development (R&D) plan due to a variety of challenges that deplete technology budgets. They often end up spending a significant part of their R&D budgets on maintaining existing and end-of-life products. This results in a suboptimal allocation of the R&D budget across the software life cycle, which leaves enterprises with limited room for innovation. In this report, we highlight enterprises’ need to comprehend the different stages of the Software Product Life Cycle (SPLC), explore the growing challenges that hinder their ability to innovate, and propose a two-pronged approach to assist such enterprises in overcoming these difficulties. Scope All industries and geographies Contents In this report, we examine: Enterprises’ need to comprehend the different stages of SPLC Key enterprise challenges that inhibit innovation A framework for enterprises to achieve the right balance between innovation and maintenance Providers’ role and relevance

Software, the largest segment in product engineering, continues to grow as platform-based business models gain prominence in both product- and services-oriented industries. This shift toward platforms has led to new dynamics, including enhanced intimacy between business and technology/engineering functions, greater urgency to manage and retire platform-related legacy systems, and increased focus on continuous platform evolution, rather than simply building and maintaining. While the new dynamics have accelerated the demand for engineering talent, the geopolitical situation in Eastern Europe is worsening the tight talent market. Engineering service providers are helping their clients navigate this challenge by providing access to scaled, persistent, and diverse engineering teams. This compendium explores the dynamics of the global software product engineering service provider market and provides detailed profiles of 33 engineering service providers featured on Everest Group’s Software Product Engineering PEAK Matrix®. Each profile offers a comprehensive overview of the provider’s software product engineering services, key Intellectual Property (IP) / solutions, buyer case studies, partnerships, domain investments, and enterprise sourcing considerations. Scope All industries and geographies Services: software product engineering services Our assessment is based on RFI responses from providers, interactions with their software product engineering services leadership, client reference checks, and an ongoing analysis of the engineering services market Contents This report features 33 software product engineering service provider profiles and includes: Key strengths and limitations Providers’ software product engineering services business and offerings – vision and strategy, software product engineering services revenue and YoY growth, and adoption across verticals, geographies, value chain elements, and buyer sizes An assessment of case studies, IP/solutions, partnerships, and domain investments Membership(s) Engineering Services Software Product Engineering Services Sourcing and Vendor Management

Industry 4.0 is revolutionizing the manufacturing and operations ecosystem by converging the digital and physical worlds. This transformation is characterized by the modern themes of interconnectivity, digitalization, and automation and is made possible through advances in next-generation technologies, including Internet of Things (IoT), additive manufacturing, cloud computing, edge computing, analytics, robotics, cybersecurity, Artificial intelligence (AI) / Machine Learning (ML), and Augmented Reality (AR) / Virtual Reality (VR). Enterprise adoption of Industry 4.0 is increasing globally, as it helps achieve cost savings, realize higher revenues, and increases flexibility, visibility, quality, efficiency, and control in industrial setups. Third-party providers are playing a vital role in accelerating enterprise adoption by offering services across the value chain, point solutions, and platforms, as well as an ecosystem of partner capabilities. As enterprises seek partners that can offer advisory and technology capabilities, as well as scaled execution of their Industry 4.0 journeys, providers will continue to invest in skills, infrastructure, and partnerships to differentiate themselves in a fiercely competitive market. This report examines the dynamics of the Industry 4.0 service provider market and presents detailed profiles of 22 leading engineering service providers featured on Everest Group’s Industry 4.0 Services PEAK Matrix®. Each profile provides a comprehensive picture of the provider’s focus on Industry 4.0 services, key IP/solutions, buyer case studies, partnerships, and domain investments. Scope: Industry: digital engineering services Geography: global This study is based on RFI responses from providers, interactions with their engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents: This report features 22 Industry 4.0 service provider profiles, each of which features: Key strengths and limitations of each of the 22 Industry 4.0 service providers featured in our PEAK Matrix® assessment An overview of the providers’ Industry 4.0 service business and offerings – vision & strategy, revenue across industry verticals, geographies, value chain elements, and Industry 4.0 projects by buyer size Case studies, IP/solutions, partnerships, and domain investments Membership(s) Engineering Services Sourcing and Vendor Management