Join Everest Group experts Yugal Joshi, Partner, Alisha Mittal, Vice President, Mukesh Ranjan, Vice President, and Akshat Vaid, Partner, for an exciting webinar that will redefine how you view the future of the engineering and IT technology space.
Get ready for a deep dive into the transformative trends due to shape engineering and IT services in 2025. From the unstoppable rise of AI to breakthrough innovations on the horizon, our panel will deliver powerful insights into what’s next for the industry and how you can take advantage of this pivotal moment.

Expect engaging discussions, bold predictions, and data-driven insights designed to empower enterprises and service providers to navigate this key era. This is your chance to learn how to leverage technology trends, outpace the competition, and thrive in a rapidly evolving landscape.

Don’t miss this high-impact session—your roadmap to 2025 starts here.

What questions will the webinar answer?

• As a services provider, which areas should you invest in during 2025 for strategic growth?
• As an enterprise, what should you look for in outsourcing partners in 2025?

Who should attend?

• IT service providers CXOs
• IT strategy leaders
• IT business leaders
• Enterprise Procurement Managers
• IT/BPO Department Heads
• Global Sourcing Mangers
• Vendor Managers
• Senior Marketing executives

WATCH THE WEBINAR ON-DEMAND

As we approach the end of 2023, a year where uncertainty continued unabated, companies are beginning to think about annual planning, which for many, kicks off months before the year ends. Service providers, in particular, need to consider how the demand for their offerings will evolve in 2024 and where they should focus their time, attention, and investments to best serve this demand.

Watch this on-demand webinar to hear key analyst perspectives on the nature of the services market, what service providers may expect in the upcoming year, and how they can plan ahead.

What questions will the on-demand webinar answer for the participants?

• What is the nature of the services market, and what can we expect going into 2024?
• How will demand for services evolve in the new year?
• How should service provider executives think about planning in this environment of prolonged uncertainty?

Who should attend?

• Executives, senior management, and business leaders in service provider organizations

The automotive industry is at an inflection point, where global sustainability concerns, increasing consumer demands, and rapid technological advancements have coalesced to propel rapid growth. In this dynamic landscape, the focus is shifting from conventional mobility solutions to a more captivating and immersive automotive experience. Automotive enterprises are now eagerly hopping on to this transformative paradigm, embracing the idea of enhancing customer experience and redefining the future of mobility. Some of the major areas of investment include:

• Autonomy Advancements: Investments in L3 to L5 autonomous technologies, intelligent adaptive cruise controls, safety systems, and sensor fusion tech to transform driving experiences
• Connected Ecosystems: Connectivity and data management are forging powerful collaborations between automotive players and players from diverse verticals such as fintech, insurance, technology, and telecommunication to bring in several after-sales services
• Software-Centricity: With the emergence of software-defined vehicles, there is an increased level of investments in software development and partnerships with technology players
• Electrification Imperative: The need to address environmental concerns and stringent governmental regulations has accelerated the investments in electric, hybrid, and fuel cell technologies

• ACES Automotive Engineering Services PEAK Matrix® Assessment 2023

  

  What is in this PEAK Matrix® Report

  This research, the fourth edition of Everest Group’s ACES Automotive Engineering Services PEAK Matrix® Assessment, evaluates 26 engineering service providers, features them on the PEAK Matrix®, and shares insights into enterprise sourcing considerations. The study is based on RFI responses from service providers, interactions with their automotive engineering leadership, client reference checks, and ongoing analysis of the engineering services market.
  Content:

  • ACES Automotive Engineering Services PEAK Matrix® 2023
  • Key characteristics of Leaders, Major Contenders, and Aspirants
  • Summary dashboard capturing the relative assessment of each service provider’s vision & capability and market impact
  • Providers’ strengths and limitations vis-à-vis enterprise sourcing considerations

  Scope:

  • This research studies the following service providers associated with automotive engineering services: Alten, Capgemini, HCLTech, KPIT, LTTS, TCS, Wipro, Akkodis, AVL, Bertrandt, Cognizant, Cyient, DXC Technologies, FEV, FPT, IAV, Infosys, NTT DATA, Tata Elxsi, Tata Technologies, Onward Technologies, Sasken, Semcon, Sigma Software Tech Mahindra, and T-Systems.
  • Industry: Automotive
  • Geography: Global

  ACES AUTOMOTIVE ENGINEERING SERVICES PEAK MATRIX® ASSESSMENT 2023

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Engineering service providers who demonstrated critical capabilities to enterprises over the past year are now being recognized for their leadership with the 2023 PEAK Matrix Service Provider of the Year awards in engineering services (ES). Read on to find out who’s providing the top engineering services based on Everest Group research.   

Activity in the Engineering R&D (ER&D) sector remained largely resilient during 2022, with service providers witnessing significant growth across themes such as platformization, digital engineering, and Industry 4.0. Amid this landscape, a few engineering service providers distinguished themselves by showcasing significant capabilities and market impact across all these leading investment themes.

We have identified the top 15 ES service providers and five leading ES challengers for the 2023 PEAK Matrix Service Provider of the Year awards in engineering services.

See the Top Engineering Service Providers

State of the ER&D industry

ER&D spending and outsourcing remained resilient in 2022, though there was some growth deacceleration as compared with 2021 on account of uncertainty around the Ukraine-Russia conflict, talent shortages and rising wage inflation, and bleak global economic forecast.

Enterprises remained committed to enhancing their products, services, and processes on the back of digital technologies. Service providers, by means of their scaled talent availability, domain know-how, and IP investments, supported these enterprises in realizing faster time-to-market and cost efficiencies for their engineering initiatives.

Methodology

The PEAK Matrix Provider of the Year awards helps enterprises identify leading service providers who have demonstrated strong capabilities and market success across multiple engineering domains.

This year’s results are based on assessments from five PEAK Matrix® reports published by Everest Group in the calendar year of 2022 that looked at the following key themes influencing ER&D over that period:

• Industry 4.0 services
• Software products engineering
• Digital products engineering
• Digital twins
• Connected medical devices

The Engineering Services PEAK Matrix Provider of the Year awards were determined by consolidating tiered scores for Leader, Major Contender, Aspirant, and Star Performer positions across each of the individual evaluations mentioned above. The two award categories are:

• ES Top 15: Engineering service providers with the highest consolidated scores based on the evaluation
• ES Top 5 Challengers: The next five top engineering services providers who are credible partners for enterprises and are positioning themselves as rivals to leading players

To learn more about the 2023 engineering service providers of the year, reach out to analysts Ankur Jain, ankur.jain@everestgrp.com, Mayank Maria, mayank.maria@everestgrp.com, or Akshat Vaid, akshat.vaid@everestgrp.com.

See the Top Engineering Service Providers

WATCH THE WEBINAR ON-DEMAND

Automotive original equipment manufacturers (OEMs), classified as Tier 1, 2, and 3, are experiencing a substantial and permanent change in customer preferences due to the widespread adoption of Software Defined Vehicles (SDVs) and Autonomous, Connected, Electric, and Shared (ACES) technologies – dramatically impacting engineering priorities in these markets.

Watch this on-demand webinar as our experts explore the latest key engineering priorities and why the automotive engineering landscape has evolved. They will also provide practical recommendations for engineering spend and examine the challenges that enterprises currently face.

Our experts will also share the latest impacts on automotive outsourcing and provide insights on how enterprises can effectively realign talent, technology, and ecosystem engagement strategies to scale SDVs and ACES initiatives.

What questions does the on-demand webinar answer for the participants?

• What are the key themes of engineering spending in the SDV and ACES market?
• What challenges do enterprises face while transforming to SDV and ACES vehicle production?
• How do you strategize for talent, technology, and ecosystem leverage to mitigate challenges?

Who should attend?

• CTO, CPO, COO, CEO
• Chief supply chain officer
• Vice president of innovation, automotive
• Managing director – engineering
• Head of information systems R&D
• Vice president – purchasing, engineering
• Vice president – operations
• Global sourcing managers
• Vendor managers
• Head of outsourcing
• Head of engineering

WATCH THE WEBINAR ON-DEMAND

The advent of 5G technology has promised unmatched opportunities for enterprises with new use cases that can benefit the topline. However, despite the hype around private 5G, current adoption patterns in APAC are not providing the promised potential. These ROI conversations have become even more pivotal given the macroeconomic conditions.

Join this webinar as our analysts provide buyers, service providers, and telecom providers with insights into the latest developments, challenges, and opportunities in the APAC market for private 5G.

Our speakers will discuss:

• What is the potential of 5G in the diverse APAC market?
• What is the current maturity for private 5G adoption, what are best practices, and what challenges should APAC enterprises keep in mind?
• How can enterprises ensure maximum ROI from private 5G adoption?

Who should attend?

• CIOs and CTOs,
• IT strategy heads
• Heads of outsourcing
• Procurement managers
• Network leads and managers
• Cloud head
• 5G leads
• Cloud and infrastructure heads

5G’s lower latency and higher bandwidth have unlocked newer uses for enterprises to explore. Additionally, 5G adoption is allowing the transformation of network infrastructure to make it quickly scalable, driving higher levels of customization and lower operating costs.

Enterprises are exploring the decoupling of hardware and software in the form of network function virtualization, automation of network operations, adoption of open-source components (hardware and software), and monetization opportunities. However, the market’s nascency is creating uncertainty and increasing complexities for enterprises.

Therefore, they are looking to partner with providers to share development risks, reduce operational costs, implement system integration measures, bring in a larger talent pool, and leverage the expertise of their partner ecosystem to engineer solutions faster.

• 5G Engineering Services PEAK Matrix® Assessment 2023: The Next Frontier in the Hyperconnected Era

  

  What is in this PEAK Matrix® Report

  This research, the second edition of Everest Group’s 5G Engineering PEAK Matrix® Assessment, evaluates 20 engineering service providers, features them on the PEAK Matrix® framework, and provides sourcing considerations for enterprises.

  Content:

  • Everest Group’s 5G Engineering Services PEAK Matrix® 2023
  • Key characteristics of Leaders, Major Contenders, and Aspirants
  • A summary dashboard assessing each provider’s vision & capability and market impact
  • Providers’ strengths and limitations vis-à-vis enterprise sourcing considerations

  Scope:

  • Providers assessed: Accenture, BICS, Brillio, Capgemini, Cyient, DXC Luxoft, GS Lab I GAVS, HARMAN DTS, HCLTech, IBM, Infosys, LTTS, NTT DATA, Sasken, Tata Elxsi, TCS, Tech Mahindra, Tietoevry, VVDN Technologies, and Wipro
  • Services: 5G engineering services
  • Geography: global

  The study is based on RFI responses from providers, interactions with their 5G engineering leadership, client reference checks, and an ongoing analysis of the engineering services market.
   

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

WATCH THE WEBINAR ON-DEMAND

As you are aware, recent advances in technology have led to a massive digital wave in the engineering world, with smart, connected, autonomous, and intelligent physical and hardware products taking center stage.

To meet the needs of the current generation of consumers and provide a rich user experience, tech and engineering leaders, such as yourself, are finding that investments in next-generation technologies and talent have become crucial in successfully building digital product engineering businesses.

Join us as our experts deliver a deep understanding of the digital product engineering market, the trends impacting this space, and potential avenues and opportunities that leaders should examine.

Our experts will explore:

• The size and expected growth of digital product engineering and how it compares to traditional engineering
• Digital product engineering spend across industries
• Relevant use-cases from an enterprise adoption standpoint and what will gain the most traction
• Approaches to gauging digital product engineering vendor performance
• The most relevant skillsets for digital product engineering initiatives
• Challenges enterprises may face when considering a play in this market

Who should attend?

• CTOs
• Chief digital officer
• VP engineering
• Engineering executives
• Product managers
• Product engineering leaders
• Leads of engineering for product-centric verticals
• Product engineering strategy leaders
• Product engineering vendor managers

The COVID-19 pandemic resulted in a severe economic downturn in 2020, and engineering service providers certainly suffered the effects of the slowdown. The following chart presents the performance of select engineering service providers – Alten, Cyient, HCL Technologies’ Engineering and R&D Services, KPIT Technologies, and L&T Technology Services – during this period as an indicator of the overall market.

Phase 1: Pre-COVID-19 sluggish growth phase – While the pandemic began taking its roots in Q1 2020, many engineering services vendors were growing at a slower pace from the second half of 2019. This can be traced back to a slowdown in key engineering verticals such as automotive, aerospace, and telecoms.

Phase 2: COVID19-led downturn – Growth began declining severely in the first quarter of 2020, and the dip in the chart shows that Q2 was when the pandemic’s effect became most pronounced. Interestingly, a deeper analysis of these companies’ portfolios reveals that service providers with greater exposure to the automotive, aerospace, and industrial verticals suffered a greater dip in their revenues. This is because these assets and hardware-heavy verticals are the ones where enterprises have reduced their R&D budgets the most. Consequently, these were also the vendors who suffered a greater dip in Q3.

Phase 3: Signs of recovery – The results the vendors reported for Q4, however, indicate that after multiple quarters of declining growth, the engineering services market has finally bottomed out and is headed upwards from here on. While the vendors have continued to report negative YOY growth numbers, revenues and growth figures have, without exception, improved in comparison to Q3.

ER&D services Y-o-Y growth for select service providers (Q1 2019 – Q4 2020)

There are several reasons for this improved performance.

Broader macroeconomic recovery – The rollout of vaccines towards the end of 2020 increased hopes of a return to some semblance of normalcy, leading economic bodies to project a strong recovery to the global economy in 2021. Enterprises across most verticals have started reinvesting in R&D projects, and service providers have acted quickly to capture some share of this growing market.

Digital product engineering – Enterprises in verticals such as healthcare, communications, media and entertainment, and even automotive have increased spending on cloudified, connected, and personalized products. Due to their expertise in software and digital themes, engineering service providers have benefited. Moreover, the data-driven nature of these products brings about a continuous revenue source for these vendors.

Industry 4.0 – Early adopters of Industry 4.0 were able to recover and restart operations faster after the lockdowns as a result of their investments in robotics, augmented reality systems, digital twins, and so on. The success and resilience of these early adopters encouraged other enterprises to also invest in Industry 4.0 themes as a means to reduce costs and improve efficiencies in the long run. Thus, multiple service providers were able to win Industry 4.0 deals in Q4 as enterprises looked beyond mere proofs-of-concept and towards large-scale implementation and rollouts of those initiatives.

Cost-takeout initiatives at enterprises – The pandemic forced enterprises to adopt aggressive cost-cutting initiatives within their engineering organizations. While this resulted in the temporary cancellation of R&D projects and budgetary cutbacks, the enterprises also began examining some of the work being carried out at offshore captive centers more closely. This benefited service providers, who were proactive in making a pitch to take over these captive centers. The recent Infosys-Rolls Royce deal in which Infosys is taking over Rolls Royce’s aerospace engineering facility in Bangalore, India, is one such example. Enterprises have also taken the vendor consolidation route to cost cutting, concentrating their engineering spend among fewer vendors, resulting in larger deal sizes for the remaining players.

What does the future hold?

The robust recovery across the board in engineering services encourages us to believe that this momentum will be carried forward in 2021. In addition, enterprises have now begun to look at service providers as long-term, strategic partners. This has resulted in several large, multi-year deals being signed in the engineering services market towards the latter part of 2020. The effects of these factors noted above, particularly vaccine rollouts, cost-takeout initiatives, and large deals, will truly be felt only in 2021, leading us to conclude that the worst is behind us and that the engineering services market is poised to register better than expected growth this year.

To learn more, please reach out to us at nishant.udupa@everestgrp.com and akshat.vaid@everestgrp.com.

Over-the-top (OTT) streaming – or, simply, delivering media content directly over the internet – has redefined the media content consumption landscape. In 2019, the number of active global monthly OTT video subscribers surpassed 750 million, accounting for more than 30 percent of digital video viewers globally.

Cloud vendors have significantly contributed to this exponential growth by providing core cloud-native delivery infrastructure to OTT players at lower costs, making it much easier for them to reach global audiences and dynamically scale their workloads with just a few clicks. In fact, over the years, the role of cloud vendors has shifted from infrastructure providers to prime drivers of technology for the OTT industry – so much that they now lead media technology altogether.

Initially, cloud vendors’ core offerings comprised storage, processing, transmission, packaging, and transcoding, which enabled OTT players to gain scale, cost, and flexibility benefits. Now, the cloud has become the default infrastructure provider for OTT delivery. In fact, all of the flagship OTT players have migrated to cloud-based OTT workflows. For example, Netflix completed its migration to Amazon Web Services (AWS) in 2017, and Spotify completed its Google Cloud Platform adoption in 2018.

The major cloud vendors, such as Amazon, Google, and Microsoft, lead the global technology landscape, and they are leveraging their expertise in advanced technologies to offer not only their core functional offerings but also compelling value-added services over the cloud. These value-added services include:

• Direct content ingestion
  Cloud providers like AWS and Azure offer direct content ingestion capabilities to OTT players, enabling them to either ingest content directly from a camera to a cloud-based management system or stream it live to various platforms. They also enable content creators to shoot videos through smartphones and send them via mobile networks to production and content management systems operating in the cloud, bypassing camcorders and live production trucks.
• Native language translation
  Cloud providers such as Google offer application programming interfaces (APIs) with natural language processing (NLP) capabilities for native language translation, which allows audiovisual content localization and translation, making it convenient for OTT players to expand their reach globally.
• AI-powered encoding
  Vendors like AWS and IBM have integrated AI with their cloud-based offerings, and cloud-based OTT workflows intensively leverage AI to provide a better viewing experience. AI helps to better monitor network traffic, improves compression techniques, and offers adaptive encoding techniques to stream HD videos over low bandwidth networks.
• Video indexing
  Video indexing services, such as Azure’s video indexer, automatically extract advanced metadata from audio and video content, including spoken words, written text, faces, brands, and scenes. OTT players can leverage the extracted data to generate insights and increase the discoverability of their content, improve the user experience, and enhance monetization opportunities.
• Advanced targeting
  Cloud providers like AWS and IBM leverage advanced analytics services such as device ID-based content tagging to provide recommendations for better viewer targeting, which enables advertisers to reach out to specific, targeted, and identified audiences. OTT players can utilize these recommendations for better content monetization.

These additional services have become core differentiators for cloud vendors versus traditional Independent Software Vendors (ISVs) that offer media streaming solutions. They’re also enabling OTT players to create true differentiation in their offerings. Additionally, the cloud has become a great leveler for players who are entering the OTT market relatively late, as it provides them the latest cutting-edge technology at the click of a button, saving them precious time in getting up and running.

It will be interesting to see how the market shapes up in the next 12-18 months, as more content and production houses start setting up their OTT platforms and make the existing battle of viewer acquisition and retention fiercer.

For more industry-leading insights on the OTT industry, please reach out to Akshat Vaid and Shivank Narula.