The Engineering Research & Development (ER&D) industry is increasingly using the global sourcing ecosystem to meet the increasing talent requirements across the dynamic skills landscape. Engineering service providers have gained significance due to this changing enterprise mindset, owing to their ability to provide on-demand scalability, proprietary solutions, infrastructure, and ecosystem access. High digital engineering demand among enterprises is further driving them to increase their reliance on the outsourcing ecosystem. Amid the increasing relevance of outsourcing partners and their involvement in strategic workstreams, enterprises need to review how they engage with and manage these providers. The Engineering Services Outsourcing Handbook examines the engineering services landscape and various engineering outsourcing practices, including outsourcing suitability factors, delivery models, vendor tiering, engagement and pricing constructs, and governance mechanisms. It will serve as a yardstick for enterprise decision-makers as they review their outsourcing portfolios and practices.  Scope Industry: ER&D Geography: global Contents In this report, we discuss:  Global ER&D landscape and relevance of global sourcing Factors driving engineering outsourcing evolution Dimensions enhancing the value realizable from the outsourcing ecosystem Membership Engineering Services GBS/SS Sourcing and Vendor Management

The digitalization wave sweeping across industries compelled enterprises to integrate software and next-generation technologies in their products and offerings, all while accelerating time-to-market and keeping a lid on costs. Leading service providers responded and engaged with enterprises to help them keep pace with rapidly evolving customer expectations. The PEAK Matrix® Provider of the Year awards help enterprises to identify distinguished providers with strong capabilities and successful services strategies that align well with the evolving enterprise engineering services demand. In this research, we present our 2022 PEAK Matrix® Provider of the Year awards for engineering services providers, our first edition of the awards, to recognize companies that exhibit consistent leadership and top performance across key themes influencing engineering R&D in 2021. Our methodology We select the Engineering Services PEAK Matrix® Provider of the Year award winners based on the consolidated scores providers achieve in the Leader, Major Contender, Aspirant, and Star Performers positions on our PEAK Matrix® evaluations. During the Q3 2020 to Q3 2021 time period, 54 providers were featured across five engineering services PEAK Matrix® evaluations. The awards are determined based on performance across the following segments − Industry 4.0, software products engineering, semiconductor engineering, ACES automotive engineering, and 5G engineering services. Award categories Award categories presented in the research include: The ES Top 15 list – recognizing the top 15 providers of engineering services based on a consolidated scoring of rankings within the PEAK Matrix® reports Top 5 ES Challengers – recognizing the next 5 providers that are credible partners for enterprises and are positioning themselves as rivals to leading players

The business landscape began to recover from the effects of the COVID-19 pandemic in 2021. Despite new virus variants emerging and supply chain disruptions and talent shortages impacting businesses, Engineering R&D (ER&D) spending increased during the year and surpassed pre-COVID levels. Digital engineering accounted for much of this increase in spending, as enterprises invested heavily in next-generation technologies to increase the business resiliency of their operations and processes, digitalize their products, and meet rapidly evolving customer expectations. ER&D outsourcing also bounced back strongly to record double-digit growth. The industry benefited significantly from the softwarization and platformization wave sweeping across industries, as enterprises turned to providers to gain access to skilled talent at scale while keeping a lid on costs. Experts widely anticipate COVID-19 to gradually become an endemic disease across the globe, and, as enterprises and providers take steps to adjust to this next normal in 2022, we examine the key developments expected in ER&D this year. Scope Industry: ER&D Geography: global Contents This research presents Everest Group’s view on the key macroeconomic and technological factors that will shape spending and outsourcing in the ER&D industry in 2022. Membership(s) Engineering Services Sourcing and Vendor Management

5G is much more than an increased speed of data transfer; it has the potential to enable a paradigm shift in the way things work around us. The low latency and high-speed characteristics of 5G make a variety of use cases possible. Enterprises have already started preparing themselves for the shift to 5G by exploring high-impact use cases across industries, investing in private 5G networks, and partnering with relevant providers. These developments have fueled the need to establish a compelling ecosystem of partners, and engineering services providers are actively enhancing their capabilities and offerings to assist enterprises in their 5G engineering journeys. This report assesses the dynamics of the global 5G engineering service provider market and presents detailed profiles of 18 leading engineering service providers featured on Everest Group’s 5G Engineering Services PEAK Matrix®. Each profile provides a comprehensive picture of the service provider’s focus on 5G engineering services, key Intellectual Property (IP) / solutions, buyer case studies, partnerships, and domain investments. The report also includes our insights on enterprise sourcing considerations for each service provider. Scope Geography: global Industry: 5G Contents This report features 18 5G engineering services provider profiles, each of which includes: Key strengths and limitations of each of the providers featured on our PEAK Matrix® assessment An overview of the providers’ 5G engineering services businesses and offerings – vision & strategy, 5G engineering services revenue, adoption across subsegments, value chain elements, geographies, and buyer size An assessment of case studies, IP/solutions, partnerships, and domain investments Membership(s) Engineering Services Sourcing and Vendor Management

The semiconductor industry is experiencing continuous growth in ER&D investments, driven by increasing adoption of AI chips, proliferation of IoT and connected devices, and the shift to lower technology nodes. This has happened despite the worldwide chip shortage in 2020, as enterprises and governments suffered from the disruption in the globally-dispersed supply chain and started focusing on increasing product diversity and self-sufficiency in the value chain. Moving ahead, enterprises need to be cognizant of the changes in the post-pandemic market – the evolving product demand landscape, restrictive trade environments, and the possibilities of inorganic growth. Service providers are playing a crucial role by proactively partnering with semiconductor enterprises such as fabless companies, IDMs, and foundries across the areas of product development, fabrication, testing, and life-cycle management. They help enterprises tackle challenges in meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures. This research examines some of the prominent trends in the global semiconductor engineering market and provides a view on the prevalent outsourcing landscape. It also analyzes the services market on various trends, such as rising talent demand, the role of emerging technologies, and increasing player consolidation. Scope Research area: engineering services Geography: global Functional area: semiconductor engineering services Contents The report is divided into the following three sections: Market overview: examines semiconductor market size across key end-use industries areas and current global landscape of semiconductor engineering spend Emerging trends: studies some of the engineering priorities of enterprises, the effect of worldwide chip shortage, and evolving trends for the post-pandemic world Outsourcing landscape: includes outsourced engineering spend analysis, popular engagement models, dynamics of talent demand, and competitive investments by service providers Membership(s) Engineering Services Sourcing and Vendor Management

The semiconductor industry is experiencing significant ER&D investments driven by emerging technologies such as Artificial Intelligence (AI), 5G, and the Internet of Things (IoT). However, semiconductor enterprises face challenges in meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures. Service providers are partnering with semiconductor enterprises such as fabless companies, Integrated Device Manufacturers (IDMs), and foundries to help deal with these challenges across the areas of product development, fabrication, testing, and life-cycle management. The providers’ semiconductor engineering service offerings span four service functions covering the semiconductor industry value chain: Design & verification Validation & testing Sustenance & value engineering Other services related to manufacturing This report assesses the dynamics of the global semiconductor engineering service provider market and presents detailed profiles of 16 leading engineering service providers featured on Everest Group’s Semiconductor Engineering Services PEAK Matrix®. Each profile provides a comprehensive picture of the service provider’s focus on semiconductor engineering services, key Intellectual Property (IP) / solutions, buyer case studies, partnerships, and domain investments. The report also includes our insights on enterprise sourcing considerations for each service provider. Scope Industry: semiconductors Geography: global Contents This report features 16 semiconductor engineering service provider profiles, each of which includes: Key strengths and limitations of each of the 16 semiconductor engineering services providers featured in our PEAK Matrix assessment An overview of the providers’ semiconductor engineering services business and offerings – vision & strategy, semiconductor engineering services revenue, and adoption across service segments, geographies, product categories, and client types An assessment of case studies, IP/solutions, partnerships, and domain investments Membership(s) Engineering Services Sourcing and Vendor Management

The semiconductor industry is experiencing significant ER&D investments driven by increasing adoption of AI chips, proliferation of IoT and connected devices, and the shift to lower technology nodes. However, semiconductor enterprises are facing challenges in meeting evolving customer demands and managing increased complexities in the value chain due to design changes and complex validation procedures. Service providers are playing a crucial role by proactively partnering with semiconductor enterprises such as fabless companies, IDMs, and foundries across the areas of product development, fabrication, testing, and life-cycle management. Their semiconductor engineering service offerings span four service functions, broadly capturing the semiconductor industry value chain: Design & verification Validation & testing Sustenance & value engineering Other services related to manufacturing In this research, we present an assessment of 16 leading service providers associated with semiconductor engineering, along with sourcing considerations for enterprises. This assessment is based on RFI responses from service providers, interactions with their semiconductor engineering leadership team, client reference checks, and an ongoing analysis of the engineering services market. Scope This research studies the following service providers associated with semiconductor engineering services: Alten, Capgemini, Cyient, HARMAN, HCL Technologies, INVECAS, LTTS, Mirafra Technologies, QuEST Global, Synapse Design, Tata Elxsi, TCS, Tech Mahindra, UST, VVDN Technologies, and Wipro. Industry: semiconductors Geography: global Contents This report maps and covers: TThe Semiconductor Engineering Services PEAK Matrix® 2021 TKey characteristics of Leaders, Major Contenders, and Aspirants TA summary dashboard capturing the relative assessment of each service provider’s vision & capability and market impact TProviders’ strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Engineering Services Sourcing and Vendor Management

Technological advances in areas such as connectivity and computing have facilitated the concept of an important Industry 4.0 enabler – the digital twin. A digital twin is a dynamic virtual representation of an entity that acts upon data regarding the entity’s condition to diagnose past failures, visualize the current status, and predict future scenarios. The entities on which digital twins are modeled may include products and systems undergoing design and development, processes that manufacture these products, supply-chain networks and supporting infrastructure, or processes for post-production services during a product’s or system’s operational stages. The use of digital twins has been gaining traction across industries, with leading technology companies developing solutions for personalized implementation. Different industries have varying degrees of knowledge about their core systems, products, and processes, and, hence, the derived value of digital twins varies across industries. This viewpoint provides insights on the digital twin technology, its leverage across six industries experiencing considerable adoption, and potential applicability in the future. Scope Industries: automotive, heavy industry, logistics, built environment, consumer goods, and healthcare Geographic scope: global Contents In this viewpoint, we study the following topics: Constituents and attributes of a digital twin Application of digital twins across the engineering-manufacturing continuum Industry efforts for digital twin adoption Future of digital twins Membership(s) Engineering Services Sourcing and Vendor Management

Industry 4.0 is the latest phase in the industrial revolution and a transformational leap in cyber and physical systems and their convergence. It is a technology-intensive transformation characterized by the emerging themes of interconnectivity, digitalization, and automation, and has a significant role to play in imparting resiliency to the entire industrial value chain. Industry 4.0 adoption has been experiencing rapid growth globally, driven by the visibility, predictability, and cost-efficient productivity that it offers. Service providers are playing a critical role by proactively partnering with enterprises to accelerate Industry 4.0 adoption and have developed a wide and comprehensive range of service offerings. The services span four service functions, which broadly capture the Industry 4.0 services value chain: Consulting and design Development and Verification and Validation (V&V) Deployment and System Integration (SI) Managed services and support In this unique and exhaustive research, we present detailed profiles and assessments of 18 engineering service providers associated with Industry 4.0 services and feature them on five PEAK Matrix Assessments, one for the overall Industry 4.0 services and one each for the four service functions mentioned above. The assessment is based on Everest Group’s annual RFI process, interactions with leading Industry 4.0 services providers, client reference checks, and an ongoing analysis of the Industry 4.0 services market. Scope: This research studies the following engineering service providers associated with Industry 4.0 services: Accenture, Atos, Capgemini, Cognizant, Cyient, eInfochips, Happiest Minds, HCL Technologies, Innominds, L&T Technology Services, Microland, Mphasis, Persistent Systems, Sasken Technologies, TCS, Tech Mahindra, UST Global, and Wipro. Contents This report features five PEAK Matrix® Assessments and 18 service provider profiles, each of which includes: An overview of the provider’s Industry 4.0 services business – vision and strategy, revenue from Industry 4.0 services, and revenue split by service function, vertical, and geography Two representative case studies to showcase the provider’s value creation for clients An overview of the provider’s capabilities – key solutions/IP, alliances & partnerships, and recent Industry 4.0 investments A summary dashboard - assessment of the provider’s vision & capability and market impact, along with Everest Group’s remarks on the provider’s strengths and areas of improvement Membership(s) Engineering Services Sourcing and Vendor Management