Mastering Engineering Service Outsourcing in the automotive industry

25 |
Mastering Engineering Service Outsourcing in the automotive industry
A. Established ESPs maintain the lead in terms of domain expertise
Figure 11 shows that European ESPs are still the dominant players in engineering
outsourcing. They profit from their long-standing client relationships
that enabled them to build up specific domain experience in relevant fields
of automotive engineering. Some OEMs even own equity in ESPs – e.g.
VW in IAV – making the working relationship even closer. To achieve a
competitive advantage, several established ESPs are highly specialized
in single domains or fields of engineering. A prominent example is AVL,
who focuses exclusively on powertrain development. This enables ESPs
to build defendable market positions and approach OEMs with a specific
service offering instead of trying to sell a less domain focused "engineering
service".
In terms of their global reach, established ESPs differ widely. While some
are focused on a small geographic area (typically their home country),
others have established a global footprint, following their clients into new
markets and attracting new customers. Again, AVL is an example of a truly
global ESP. The company operates nearly 50 technology centers and sales
offices around the world, making it the most globalized established ESP.