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

What is the Everest Group Engineering Services (ES) Top 50™? This report provides a clear and objective overview of the third-party services market and how ES providers compare to each other. It will assist enterprises in identifying the top ES providers and their functional coverage, and ES providers in benchmarking themselves against peers. It will also be useful for other parties interested in the space, such as private equity and venture capital firms. Why the Everest Group Engineering Services Top 50™? ES providers continue to enhance their engineering capabilities and acquire companies to increase their scale and enter new markets. Outsourcing has grown since 2022, albeit at a slow pace. Key growth drivers include platformization and the softwarization wave. Companies invest in Software Defined Everything (SDX) in both automotive and medical devices. They experiment with gen AI in diverse applications, advance connected products, and implement Industry 4.0 practices. A consistent rise in sustainability and green technology practices in software and digital engineering also fuels growth. How is the Everest Group Engineering Services Top 50™ determined? There are two distinct steps involved in determining the Engineering Services Top 50: (1) Criterion: Only the 50 largest providers, based on their previous year’s ES revenue (CY 2023 for this report), qualify for the Engineering Services Top 50 assessment (2) Rank determination: Providers are ranked based on their previous year’s ES revenue (CY 2023 for this report) and YoY growth. Growth comprises two parameters: absolute growth (measured as change in ES revenue in US$) and percentage growth (measured as percentage change in ES revenue)

Enterprises are increasingly depending on providers with rapid innovation in software product engineering. Consequently, providers are developing offerings that can help them play a critical role across the software product engineering value chain by filling capability gaps, augmenting staff, reducing time-to-market, and bringing in new technologies. Given the vital role that providers are playing in software product engineering, it is important to understand how satisfied enterprises in the domain are with the providers they engage with. Everest Group’s Software Product Engineering Services Enterprise Pulse study analyzes enterprises’ expectations and satisfaction levels with their providers. The findings in this report are based on insights from 234 unique interviews with enterprises nominated as references by more than 40 global software product engineering providers assessed in this report. The study summarizes the enterprises’ views on their providers’ capabilities across the software product engineering services value chain. The report also outlines enterprises’ expectations from engineering providers and captures quantitative and qualitative insights across multiple assessment parameters. Scope Software product engineering services All industries and geographies Contents This report studies Enterprises’ satisfaction levels with their providers across geographies, key engineering domains, and key engagement parameters Enterprises’ expectations from and perspectives on individual providers Membership(s) Software Product Engineering Services Sourcing and Vendor Management

Gen AI’s emergence marks a significant milestone in technology, enabling machine capabilities to emulate human intelligence and creativity. Its transformative potential and close relationship with Large Language Models (LLMs) are encouraging individuals and enterprises to reimagine decision-making processes and content creation strategies. Gen AI also offers promising opportunities for enterprises seeking to expand their operations beyond traditional AI and Robotic Process Automation (RPA). Hence, technology providers are introducing an array of related tools and LLMs. However, amid this excitement, enterprises may rush to adopt gen AI without carefully considering its benefits and the necessary investments. Previous technology waves indicate that such initiatives often conclude unfavorably, failing to deliver tangible business value. To navigate this landscape effectively, enterprises should compare the advantages of gen AI against alternative solutions, carefully select LLMs, optimize them for maximum business impact, and choose appropriate deployment models. By doing so, they can unlock the full potential of gen AI while mitigating risks and maximizing returns. Through strategic planning and thoughtful execution, enterprises can seize new opportunities and drive innovation in this era of gen AI. In this report, we offer practical advice to businesses, highlighting key areas where gen AI can outperform traditional AI and RPA. The report also advises on selecting the appropriate LLMs tailored to specific requirements and provides strategies for enhancing LLM performance to achieve tangible business benefits. Additionally, it discusses considerations for determining the optimal deployment model for LLMs, aiding enterprises in maximizing the value derived from their gen AI initiatives. Scope All industries and geographies Contents In this viewpoint, we examine: Gen AI’s significant benefits over AI and RPA Key factors to consider when selecting an LLM Strategies for optimizing and fine-tuning LLMs to realize business value Considerations for choosing the most suitable deployment model for LLMs Membership(s) Engineering Research and Development Software Product Engineering Services Sourcing and Vendor Management  

What is the Everest Group Engineering Services (ES) Top 50™? Engineering Services (ES) includes all activities (across software, embedded, mechanical, and process engineering functions) that support the design, development, testing, and management of products, both hardware and software. The Everest Group Engineering Services Top 50™ is a global list of the 50 largest third-party providers, based on their ES revenues and year-on-year growth. This is the fifth edition of the definitive listing. Why the Everest Group Engineering Services Top 50™? This report provides a clear and objective overview of the third-party services market and how ES providers compare to each other. It will assist enterprises in identifying the top ES providers and their functional coverage, and ES providers in benchmarking themselves against peers. It will also be useful for other parties interested in the space, such as private equity and venture capital firms. ES providers continued to boost their engineering capabilities and acquire companies to increase scale and gain access to new markets. Outsourcing has increased from 2021, driven by a platformization wave, increased investments in connected and electric cars, and a rise in sustainability and green technology practices toward software and digital engineering. How is the Everest Group Engineering Services Top 50™ determined? There are two distinct steps involved in determining the Engineering Services Top 50: (1) Criterion: Only the 50 largest service providers, based on their previous year’s ES revenue (CY 2022 for this report), qualify for the Engineering Services Top 50 assessment (2) Rank determination: Service providers are ranked based on their previous year’s ES revenue (CY 2022 for this report) and year-on-year growth. Growth comprises two parameters: absolute growth (measured as change in ES revenue in US$) and percentage growth (measured as percentage change in ES revenue)

Industry 4.0 or the fourth industrial revolution represents a new phase of transformation in the manufacturing and related value chains. The Industrial Internet of Things (IIoT), Artificial Intelligence (AI), Machine Learning (ML), Augmented Reality (AR), Virtual Reality (VR), additive manufacturing, analytics, simulation, blockchain, cybersecurity, cloud and edge computing, digital twins and robotics contribute to this transformation, which is characterized by interconnectivity, automation and complete digital transformation. Due to numerous advantages to businesses, including enhanced flexibility, agility, visibility, quality, efficiency, and control, Industry 4.0 adoption is gaining substantial traction on a global scale. However, enterprises are facing several challenges in scaling up their Industry 4.0 initiatives, such as the lack of a strategic approach to implementation, technological complexity, costs, and unavailability of talent. Service providers are stepping in to address these issues and provide a wide range of solutions, significantly advancing the adoption of Industry 4.0 in businesses. This report looks at the dynamism of the global Industry 4.0 market. The scope of this report covers the segments below – market overview, emerging trends in the market, and Industry 4.0 services outsourcing landscape. Scope: All industries and geographies Contents: The study is divided into the following three sections: Market overview: observes market size across key service areas and adoption levels across industry verticals Emerging trends: studies some of the overarching industry themes Outsourcing landscape: includes spend analysis, engagement models, and competitive investments from service providers Membership (s) Engineering Services Sourcing and Vendor Management