Mastering Engineering Service Outsourcing in the automotive industry

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Market study
5. Engineering Service Provider landscape
Two groups of Engineering Service Providers dominate the market. One
comprises the established players of mostly European origin that have been
active in this field for decades. The other group consists of new competitors
from emerging markets – the vast majority of which are based in India –
that have only recently been established. The differences between the two
groups today are remarkable in terms of engineering know-how, industry
focus and revenues. Established market players maintain a strong lead over
their new competitors from emerging markets in most categories. Nevertheless,
ESPs from emerging markets have continued to grow quickly and
are prepared to attack established competitors in their home markets.
Figure 10 provides an overview of the major players in the automotive
ESO industry for both categories. It is worth noting that even the largest
emerging market ESO provider (TCS) generated fewer revenues from
ESO than the tenth-largest established company (Rücker).
To further demonstrate the differences between the two groups, figure 11
evaluates selected companies based on their domain experience and their
global reach. The illustration provides an overview of how individual ESO
providers are positioned to meet customer requirements in engineering
outsourcing.