Showing 14 results
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April 03, 2025In April 2025, the U.S. announced a 25% tariff on all imported automobiles and selected components, targeting OEMs and suppliers across global markets. This is compounded by a hardware-software ban on Chinese and Russian tech in connected vehicles. The policy aims to strengthen domestic manufacturing and safeguard national security, but is already driving up vehicle prices, delaying purchases, and triggering supply chain realignments. OEMs are stockpiling inventory, reassessing sourcing, and shifting toward higher-margin models. Suppliers face cost inflation and compliance challenges, while consumers are shifting to used vehicles. Service providers have an opportunity to guide clients through this disruption with supply chain diagnostics, logo-level exposure analysis, and tech-driven engineering support. In this Viewpoint, we explore the near- and long-term implications of these policies across the automotive value chain, including their impact on OEMs, suppliers, consumers, and the opportunities they create for service providers. Scope Industry: Automotive Geography: Global Contents This research outlines Everest Group’s perspective on the business implications of the U.S. auto import tariffs and hardware-software ban, with specific insights for OEMs, suppliers, consumers, and service providers.
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Viewpoint
Engineering R&D (ER&D) Outlook for 2025
Jan. 10, 2025In 2024, enterprises faced economic headwinds from recessionary pressures, inflation, high interest rates, and geopolitical tensions impacting supply chains. Despite these challenges, organizations showed resilience by focusing on cost control, value realization, and technology adoption to enhance productivity. Key Engineering and R&D (ER&D) growth drivers included IoT, connected ecosystems, AI augmentation, and the demand for intelligent manufacturing and software-defined solutions. There were indications of a market recovery toward the end of 2024 due to the reduction in interest rates and the AI boom. The surge in Global Capability Centers (GCCs) and their shift from backend offices to R&D hubs also contributed to the ER&D growth momentum. In this report, we examine key ER&D verticals and horizontal themes, such as the rise of GCCs, AI, and manufacturing, that will influence enterprise investment priorities in 2025. Scope Industry: ER&D Geography: global Contents This research presents Everest Group’s view on key macroeconomic and technology trends shaping spending and outsourcing in the ER&D industry in 2025. Membership(s) Engineering Research and Development Sourcing and Vendor Management -
State of the Market
Connected Product Engineering State of the Market 2024
Dec. 12, 2024The growing demand for personalization and the integration of software into traditional engineering products have driven the rise of connected products. These products evolve by incorporating technologies that make them smart, connected, and autonomous, enabling greater transparency, operational efficiency, and robustness across industries. Key technologies such as IoT, AI/ML, AR/VR, 5G, and data analytics are attracting significant investments as enterprises strengthen their digital portfolios. Most companies are at varying digital adoption stages, ranging from isolated applications to large-scale deployments. As the connected product market rapidly evolves and remains highly competitive, enterprises must continuously innovate and accelerate time-to-market. Many collaborate with partners to access niche skills and reduce costs while globally diversifying their value chains. In this report, we assess the connected product engineering market, identify key technology and business trends impacting the market, and study the challenges and opportunities that lie ahead. The report also examines how providers align with customer requirements and enhance their capabilities to become partners of choice in connected product engineering. Scope Industry: engineering services Geography: global Contents In this report, we examine: Enterprise research and development spending on connected product engineering, growth drivers and use cases by verticals, business and technology growth drivers, and enterprise maturity levels Key trends and investment themes influencing spending, such as platforms for connected devices, talent demand, and generative AI integration with connected products The outsourcing landscape, assessing the growth of connected product engineering services and how providers are adapting to meet market demands Membership(s) Engineering Research and Development Sourcing and Vendor Management -
Thematic Report
Engineering Research and Development Services Enterprise Pulse: Rising Customer Satisfaction Despite Economic Challenges
Oct. 30, 2024Enterprises are increasingly relying on providers due to the rapid pace of innovation in engineering. Capitalizing on this reliance, providers are developing offerings that can help them play a vital role in the 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 product engineering, it is important to understand how satisfied engineering enterprises are with the providers they engage with. Everest Group’s Engineering Research and Development Services Enterprise Pulse study analyzes enterprises’ expectations and satisfaction levels vis-à-vis providers. The findings in this report are based on insights from 140 unique interviews with enterprises that were nominated as references by 38 global engineering service providers assessed in this report. The study summarizes enterprises’ views on their providers’ capabilities across the key engineering domains, including ACES automotive engineering, connected product and medical devices engineering, digital twin, Industry 4.0 engineering, and 5G engineering. The report also captures quantitative and qualitative insights across multiple assessment parameters. Scope Research area: engineering services All industries and geographies Contents This report studies: Engineering enterprises’ overall satisfaction with their providers Enterprises’ satisfaction levels across geographies and key engineering domains Enterprises’ expectations from providers Membership(s) Engineering Research and Development Sourcing and Vendor Management -
Provider Compendium
Connected Product Engineering Services – Provider Compendium 2024
June 12, 2024In today’s competitive industry landscape, technology is vital in the product engineering domain to deliver superior customer experiences. To meet customer needs and develop connected, smart, and autonomous products, enterprises are investing in gen AI, AI/ML, AR/VR, 5G, cloud connectivity, IoT, and cybersecurity. However, rapid innovation, talent shortage, and the need to stay ahead of market trends underscore the significance of establishing a compelling partnership ecosystem to accelerate time-to-market. To address this demand, engineering service providers are enhancing their capabilities to unlock connected products’ data potential, integrate multiple technologies for improved user experiences, and develop technically advanced connected products. This compendium provides accurate, comprehensive, and fact-based snapshots of 21 engineering service providers’ capabilities and offerings. Each profile offers a detailed overview of the provider’s vision, solutions, partnerships, and investments in connected product engineering. Scope Industry: engineering research and development services Geography: global This report is based on Everest Group’s RFI responses in 2023, interactions with leading engineering service providers and their connected product engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we: Examine connected product engineering services business, including engineering and design, embedded and network engineering, and connected platform engineering capabilities Categorize providers as Leaders, Major Contenders, and Aspirants Assess each provider’s vision, capability, and market impact Compare providers’ key strengths and limitations Membership(s) Engineering Research and Development Sourcing and Vendor Management -
May 02, 2024In today’s fiercely competitive landscape across industries, technology plays a vital role in both product engineering and delivering exceptional customer experiences. To meet customer needs and enable the development of connected, smart, and autonomous products, enterprises are investing in next-generation technologies such as generative AI, AI/ML, AR/VR, 5G, cloud connectivity, IoT, and cybersecurity. However, the rapid pace of innovation, scarcity of talent at scale, and the need to stay ahead of market trends underscore the importance of establishing a compelling partnership ecosystem to accelerate time-to-market. To address this growing demand from enterprises, engineering service providers are actively enhancing their capabilities and offerings to unlock the potential of data from connected products, integrate multiple technologies for enhanced user experiences, and engineer technically advanced connected products. In this report, the first edition of Everest Group’s Connected Product Engineering Services PEAK Matrix® Assessment with a focus on engineering and design, embedded and network engineering, and connected platform engineering capabilities, we evaluate 21 engineering service providers and their positioning on the PEAK Matrix® framework. The report also examines providers’ key strengths and limitations vis-à-vis enterprise sourcing considerations. Scope Industry: Engineering Research and Development services Geography: global This study is based on RFI responses from providers, interactions with their connected product engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we examine: Connected Product Engineering Services PEAK Matrix® Assessment 2024 with a focus on engineering and design, embedded and network engineering, and connected platform engineering capabilities Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard capturing the relative assessment of each provider’s vision and capability and market impact Providers’ key strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Outsourcing Excellence Engineering Research and Development
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Jan. 10, 2024Recessionary concerns exerted a significant influence on enterprise decision-making in 2023, driven by factors such as depleting pandemic savings, high-interest rates, global demand slowdown, rising oil prices, and ongoing geopolitical uncertainties. Despite these challenges, enterprises displayed adaptability and strategic responsiveness to emerging trends while actively pursuing profitability and optimizing costs. As a result, global Engineering Research and Development (ER&D) spending continued its upward trajectory. At the same time, as enterprises prioritized profitability and streamlined discretionary spending, ER&D services outsourcing grew at a slower-than-expected pace. In this research, we examine the key macroeconomic and technology trends that will shape ER&D spending and outsourcing in 2024. Scope Industry: ER&D Geography: global Contents This research presents Everest Group’s view on the key macroeconomic and technology trends that will shape ER&D spending and outsourcing in 2024. Membership(s) Engineering Research and Development Software Product Engineering Services Sourcing and Vendor Management
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Provider Compendium
5G Engineering Services – Provider Compendium 2023
Aug. 03, 20235G’s lower latency and higher bandwidth are unlocking newer uses for enterprises to explore. Additionally, 5G adoption is enabling the rapid scalability of network infrastructure, driving higher levels of customization, and reducing operating costs. Enterprises are exploring various initiatives, including the decoupling of hardware and software through network function virtualization, automating network operations, adopting open-source components (hardware and software), and exploring monetization opportunities. However, the market’s nascency is creating uncertainty and increasing complexities for enterprises. Therefore, they are looking to partner with providers to share development risks, reduce operational costs, implement system integration measures, access a larger talent pool, and leverage the expertise of their partner ecosystem to engineer solutions faster. This compendium provides comprehensive and fact-based snapshots of 20 5G engineering services providers featured in the second edition of Everest Group’s 5G Engineering PEAK Matrix® Assessment. Each profile provides a comprehensive picture of the provider’s 5G engineering services, key solutions offered, strategic partnerships and investments in 5G engineering, performance in the market, and customer case studies. The report also presents our insights on enterprise sourcing considerations for each provider. Scope All industries and geographies Services: 5G engineering services The study is based on RFI responses from providers, interactions with their 5G engineering leadership, client reference checks, and an ongoing analysis of the engineering services market Contents In this report, we present detailed profiles of 20 5G engineering providers, and include: An overview of the 5G engineering services business, encompassing vision and strategy, 5G engineering services revenue, year-on-year growth, and revenue composition across geographies, industry segments, value chain functions, and buyer sizes A curation of providers’ case studies, proprietary solutions, partnerships, and investments Providers’ key strengths and limitations Membership(s) Engineering Research and Development Sourcing and Vendor Management -
PEAK Matrix®
5G Engineering Services PEAK Matrix® Assessment 2023: The Next Frontier in the Hyperconnected Era
June 09, 20235G’s lower latency and higher bandwidth have unlocked newer uses for enterprises to explore. Additionally, 5G adoption is allowing the transformation of network infrastructure to make it quickly scalable, driving higher levels of customization and lower operating costs. Enterprises are exploring the decoupling of hardware and software in the form of network function virtualization, automation of network operations, adoption of open-source components (hardware and software), and monetization opportunities. However, the market’s nascency is creating uncertainty and increasing complexities for enterprises. Therefore, they are looking to partner with providers to share development risks, reduce operational costs, implement system integration measures, bring in a larger talent pool, and leverage the expertise of their partner ecosystem to engineer solutions faster. This research, the second edition of Everest Group’s 5G Engineering PEAK Matrix® Assessment, evaluates 20 engineering service providers, features them on the PEAK Matrix® framework, and provides sourcing considerations for enterprises. Scope Providers assessed: Accenture, BICS, Brillio, Capgemini, Cyient, DXC Luxoft, GS Lab I GAVS, HARMAN DTS, HCLTech, IBM, Infosys, LTTS, NTT DATA, Sasken, Tata Elxsi, TCS, Tech Mahindra, Tietoevry, VVDN Technologies, and Wipro Services: 5G engineering services Geography: global The study is based on RFI responses from providers, interactions with their 5G engineering leadership, client reference checks, and an ongoing analysis of the engineering services market. Contents In this report, we examine: Everest Group’s 5G Engineering Services PEAK Matrix® 2023 Key characteristics of Leaders, Major Contenders, and Aspirants A summary dashboard assessing each provider’s vision & capability and market impact Providers’ strengths and limitations vis-à-vis enterprise sourcing considerations Membership(s) Engineering Services Sourcing and Vendor Management -
Viewpoint
Engineering R&D (ER&D) Outlook for 2023
Feb. 20, 2023Throughout 2022, headlines concerning the Ukraine-Russia conflict, wage inflation, talent shortages, and the possibility of an impending economic slowdown remained prevalent. Despite these challenges, enterprises demonstrated resilience and increased their expenditures on Engineering Research and Development (ER&D) in areas such as platformization, 5G, digital engineering, and Industry 4.0. As a result, there was a gradual but steady growth in global ER&D spend. Furthermore, ER&D outsourcing continued to grow, albeit at a slower rate than in 2021, as recessionary headwinds persisted in the latter half of 2022. The need for specialized talent capable of working on rapidly evolving technologies and the drive for shorter innovation cycles and faster time-to-market remained vital ER&D spending growth drivers. As enterprises and providers adjust to the anticipated economic slowdown in 2023, we examine the key developments expected in ER&D this year. Scope Industry: ER&D Geography: global Contents In this report, Everest Group analyzes the key macroeconomic factors that are expected to impact both spending and outsourcing in the ER&D industry throughout 2023. Membership(s) Engineering Services Sourcing and Vendor Management