Harrisburg, NC -- (SBWIRE) -- 10/23/2020 -- The Engineering Research and Development (ER&D) Outsourcing Market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies. We analyzed the impact of COVID-19 (Corona Virus) on the product industry chain based on the upstream and downstream markets, on various regions and major countries and on the future development of the industry are pointed out.
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The 79 pages report presents the market competitive landscape and a corresponding detailed analysis of the major vendor/key players in the market. Top Companies in the Global Engineering Research and Development (ER&D) Outsourcing Market: Altran Technologies, Alten Group, Akka Technologies, Bertrandt AG and others.
Industry News and Updates:
With Altran on board, Capgemini to boost ER&D outsourcing to India
Jul 03, 2019: Capgemini's plan to acquire engineering consulting firm Altran for 3.6 billion euros ($4.1 billion) could boost growth in the Indian engineering services market, analysts said. The acquisition, announced last week, is primarily aimed at turning the technology services major into a key player with full stack capabilities across R&D, product engineering, manufacturing services, digital design, process consulting and software development and integration, according to the company. Capgemini and Altran combined could become a 17 billion euro entity in terms of revenue.
"A majority of engineering work is outsourced onshore in Europe to the European pure-play engineering service providers. Multinational companies never had a large presence in this sector. Now, Capgemini is going to have a sizeable engineering capacity in India and it can try to convince European enterprises to offshore more engineering work to India," said Pareekh Jain, founder of Pareekh Consulting.
Engineering and R&D services (ER&D) outsourcing is a largely under-penetrated market and about 5% of the $1.5 trillion R&D spend comes from service providers. Jain said India's has a 1% share of the globally outsourced engineering services business. European pure-play service providers such as Altran and Alten, apart from India's top five IT services providers and pure-play firms like L&T Technology Services, are the major players in this space, he said.
Renault Considering R&D Outsourcing to Save EUR 200m Annually
May 11, 2020: Renault is considering R&D outsourcing to save EUR 100-200m annually. The company currently works with approximately 15 ER&D vendors and wants to reduce its number of preferred partners to five. Currently, Renault's most significant suppliers are Altran/Capgemini, Alten, Akka, Expleo, and Segula. Renault would award larger contracts that represent 80% of its ER&D spend to drive down prices. The move would mirror the ER&D outsourcing policy of rival PSA. It is not a surprise, as Gilles Le Borgne, the former head of engineering at PSA is now head of R&D at Renault. Under Mr. Le Borgne, PSA outsourced parts of Opel's R&D to Segula. The deal involved 800 engineers.
The French automotive OEM industry will go through significant changes in the next two years. Renault will announce by mid-May a EUR 2bn cost savings program, to which R&D outsourcing will contribute to 10-20%. With work at home now widely used, even among R&D departments, we think offshoring is the logical next step for Renault. Renault already has an engineering presence in Romania (for its Dacia brand) and in India (for addressing the local market).
Altran Group acquires Aricent and creates the undisputed global leader in Engineering and R&D services
Altran, a global leader in Engineering and R&D services (ER&D), has entered today, through its subsidiary Altran US, into a definitive agreement to acquire Aricent, a global digital leader in design and engineering services, from a group of investors led by KKR, for a total enterprise value of €1.73 billion or $2.0 billion in an all-cash transaction. Based on LTM June 2017 data, this corresponds to 10.6x EBITDA4 pre-synergies, and 8.0×4 post run-rate-synergies (14.4x EBIT pre-synergies and 9.9x EBIT4 post-synergies). The transaction has been unanimously approved by Altran's Board of Directors and is expected to close in Q1 2018, subject to receipt of antitrust approvals and satisfaction of customary closing conditions. Following the transaction, the combined entity will become the undisputed global leader in ER&D services, a market expected to be worth €220 billion by 2020.
Executive Summary:
Outsourcing refers to apportionment of specific business processes to an external service provider who is specialist in the same In many situations an organization is not able to control all aspects of business process internally. Moreover, some processes are temporary in nature and organizations do no want to hire professionals to perform such tasks.
Engineering services research and development industry is at the point of revolution which is boosted by rising consumer demand and disturbance in technology. Major industries are progressively concentrating on developing engineering research and development (ER&D) products that can assimilate with digital consumer network and this transformation led the demand for ER&D research and development outsourcing industry. Engineering research & development outsourcing market is categorized into three major segments namely mechanic, embedded IT, and software. Major end users of engineering research & development (ER&D) outsourcing market includes automobile, aeronautics, telecom, rail, software & internet industry etc.
The global research & development outsourcing market has shown rising trends over the past few years and is anticipated to grow at tremendous growth rate over the forecasted period as well. Lack of skilled personnel, and rising demand for cist reduction are some of the major factors driving the growth of the industry. Other growth drivers such as shorter project lifecycle, cost saving from lower labor wages, industry consolidation, and growing offshore outsourcing demand would propel the growth of the market over the next five years. However, the growth of the market is restrained by some factors which include risk associated with intellectual property outsourcing, and lack of domain expertise.
The research study evaluates the overall size of the market, by making use of a bottom-up approach, wherein data for different industry verticals, and end-user industries and its applications across various product types have been recorded and predicted during the forecast period. These segments and sub-segments have been documented from the industry specialists and professionals, as well as company representatives, and are outwardly validated by analyzing previous years' data of these segments and sub-segments for getting an accurate and complete market size.
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Following are major Table of Content of Engineering Research and Development (ER&D) Outsourcing Industry:
- Engineering Research and Development (ER&D) Outsourcing Market Sales Overview.
- Engineering Research and Development (ER&D) OutsourcingMarket Sales Competition by Manufacturers.
- Engineering Research and Development (ER&D) Outsourcing Market Sales Analysis by Region.
- Engineering Research and Development (ER&D) Outsourcing Market Sales Analysis by Type.
- Engineering Research and Development (ER&D) Outsourcing Market Analysis by Application.
- Engineering Research and Development (ER&D) OutsourcingMarket -Manufacturers Analysis.
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