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.
Throughout 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…
