Mastering Engineering Service Outsourcing in the automotive industry

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Mastering Engineering Service Outsourcing in the automotive industry
1. Executive summary
The Engineering Service Outsourcing (ESO) market is growing steadily
and offers flexibility and cost-saving potential for Original Equipment
Manufacturers (OEMs) and Original Equipment Suppliers (OESs). While
certain domains (e.g. body/interior) will not see major growth rates,
powertrain and electronics/electric (E/E) are the fastest-growing
segments for outsourcing.
Both vehicle manufacturers and suppliers are facing increasing pressure
on development costs and must leverage engineering outsourcing to benefit
from gains in flexibility and efficiency. Emerging market players, in
particular, provide the right assets, in terms of both a low-cost engineering
workforce and the mastery of low-budget vehicle design concepts.
Due to a steep learning curve, they are now increasingly advancing into the
high-end segment, and also urging established market players to engage in
low-cost engineering. We at Roland Berger have examined with a market
survey amongst leading automotive managers major trends and successful
business practices in engineering outsourcing.
Based on our findings we have formulated comprehensive insights and
recommendations for both, the OEM/OES as well as the Engineering
Service Provider side.