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

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

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

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

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

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 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 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.

The Middle East has evolved significantly over the past decade, with major strides in digital innovation, sustainability, and AI-infused projects. As nations seek to reduce their reliance on the oil and gas sector, they are actively diversifying into emerging industries. Complementing this shift, the engineering services market in the region is substantially growing, fueled by investments in infrastructure, clean energy, and next-generation technologies. Guided by national visions and digital innovation strategies, industries are now pursuing strategic partnerships to accelerate progress. This report explores the Middle East’s engineering services landscape, analyzing region-specific nuances, growth dynamics, talent availability, demand themes across dominant industries, and outsourcing trends across key verticals. It highlights major countries in the region and offers insights into their growth drivers, inhibitors, talent profiles, and active enterprises. Additionally, the report provides a forward-looking perspective on growth opportunities and serves as a guide for providers aiming to navigate this evolving market.arti

Mid-market software product engineering enterprises are experiencing strong momentum, driven by their growing ambition to innovate faster and scale smarter. The increasing reliance on technology outsourcing has accelerated their ability to move beyond minimum viable products and achieve full-scale software rollouts. Although resource and technology constraints often lead to delays and cost overruns, the advent of AI has enabled these enterprises to significantly reduce costs. AI-assisted development, along with the rise of low-code and no-code platforms, is already delivering measurable efficiency gains in code generation, testing, and deployment, allowing mid-market firms to compete with larger enterprises on both speed and innovation. The variation in demand and the type of engagement sought by mid-market enterprises differ from those of large enterprises, significantly reshaping their expectations from providers. This evolution has shifted expectations away from purely talent-providing providers toward strategic partners capable of simultaneously delivering cost savings, speed, and innovation. Everest Group’s 2025 PEAK Matrix® Assessment evaluates 26 leading software product engineering providers serving the mid-market. The assessment positions these providers within the PEAK Matrix® framework and offers insights into enterprise sourcing considerations.