R&D outsourcing refers to the outsourcing of R&D activities to third-party service providers for designing, prototyping, testing, production, and sales. The survival in extremely competitive market environments has forced organizations to outsource their R&D operations to third-party service providers. R&D outsourcing allows organizations to develop innovative and cost-effective products in a short time and earn more profit.
According to AMA, the market for R&D Outsourcing is expected to register a CAGR of 8.35% during the forecast period to 2028.
|Unit||Value (USD Million)|
|Key Companies Profiled||HCL Technologies (India), Infosys (India), TCS (India), Tech Mahindra (India), Wipro (India), Aricent, Inc. (United States), Aspire Systems, Inc. (India), Samsung Electronics (South Korea), Microsoft (United States), Intel (United States), Beyondsoft Corp. (China), Blue Star Infotech, Ltd. (India), GlobalLogic (United States), Cyient (India), Luxoft (Switzerland), Mindtree (India), QuEST Global Services (Singapore), KPIT Technologies Ltd (India) and Larsen & Toubro Ltd (India)|
This growth is primarily driven by Cost-Effective Solution for Research and Development Activities, Rise of R&D Outsourcing in the Pharmaceutical Industry and Reduces Risk.
Globally, a noticeable market trend is evident Evolution of Industrial IoT and M2M Communication
The IT Consulting & Other Services sector in the North America region has been increasing at a sustainable rate, and further growth is expected to be witnessed over the forecast period, owing to the robust investments and expansion in production facilities in the region. Major Players, such as HCL Technologies (India), Infosys (India), TCS (India), Tech Mahindra (India), Wipro (India), Aricent, Inc. (United States), Aspire Systems, Inc. (India), Samsung Electronics (South Korea), Microsoft (United States), Intel (United States), Beyondsoft Corp. (China), Blue Star Infotech, Ltd. (India), GlobalLogic (United States), Cyient (India), Luxoft (Switzerland), Mindtree (India), QuEST Global Services (Singapore), KPIT Technologies Ltd (India) and Larsen & Toubro Ltd (India), etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years. The global R&D outsourcing service market is moderately fragmented. The level of competition among the companies in the R&D outsourcing market is intense and the focus is towards developing new technologies and offering customized products to the customers. The companies are seeking ways to reduce cost, improve product quality and production efficiency. During the coming years, a number of companies will also follow the merger and acquisition and many more strategies to sustain in this competitive market.
A recent study by the Center for European Economic Research shows that "The cost savings that come from outsourcing R&D can easily be overshadowed by the added complexity to manage the process throughout the organization. The report, which used survey data from a wide range of German companies, concluded that outsourcing more than 15 percent to 30 percent of a firmís innovation activities could make it difficult for management to maintain the effectiveness of the organization."
Evolution of Industrial IoT and M2M Communication, Growing Adoption of Predictive Analysis Techniques and Emergence of Artificial Intelligence
Market Growth Drivers:
Cost-Effective Solution for Research and Development Activities, Rise of R&D Outsourcing in the Pharmaceutical Industry and Reduces Risk
Establishing an Effective Communication Between Service Providers and Clients and Identification of Service Providers with Required Expertise
Larger Capital Investment Required to Establish Management Facilities, Characteristic Complexity and Uncertainty Involved and Risk Associated with Hi-tech R&D and Conflict of Interest Issues
Emergence of R&D Outsourcing In The Emerging Countries, Virtual R&D and Emergence of Industry 4.0 and Widespread Adoption of AI Across Industries
AMA Research follows a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcases the spontaneously changing Players landscape impacting the growth of the market. Furthermore, our market researchers extensively analyze the products and services offered by multiple players competing to increase their market share and presence.
Customization in the Report
AMA Research features not only specific market forecasts but also includes significant value-added commentary on:
- Market Trends
- Technological Trends and Innovations
- Market Maturity Indicators
- Growth Drivers and Constraints in R&D Outsourcing Market
- Analysis about New Entrants in R&D Outsourcing Market & Entry/Exit Barriers
- To Seize Powerful Market Opportunities
- Identify Key Business Segments, Market Proposition & Gap Analysis
- An Unbiased Perspective towards Market Performance & Indicators
Against this Challenging Backdrop, R&D Outsourcing Study Sheds Light on
The R&D Outsourcing Market status quo and key characteristics. To end this, Analysts at AMA organize and took surveys of the R&D Outsourcing industry Players. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
Where R&D Outsourcing industry is heading and what are the top priorities. Insights are drawn from financial analysis, surveys, and interviews with key executives and industry experts.
How every company in this diverse set of Players can best navigate the emerging competition landscape and follow a strategy that helps them position to hold the value they currently claim or capture the new addressable opportunity.