Market Research Report
Global Research and Development (R&D) Outsourcing Services Market 2019-2023
|Published by||TechNavio (Infiniti Research Ltd.)||Product code||865014|
|Published||Content info||136 Pages
Delivery time: 1-2 business days
|Global Research and Development (R&D) Outsourcing Services Market 2019-2023|
|Published: May 17, 2019||Content info: 136 Pages||
Enterprises need to focus on the unique aspects of their businesses, which distinguish them from their rivals and attract consumers. Competition among enterprises is increasing continuously due to globalization, which, in turn, is encouraging them to focus on their core competencies. Enterprises outsource tasks such as R&D services, which are not a part of their core competencies. This helps them focus their business resources on critical tasks and strategies. For instance, a company that manufactures vehicles should focus on making the operations of the manufacturing process lean. It should also ensure smooth project management, from the manufacturing of cars to on-time delivery. Hence, such enterprises outsource their non-engineering R&D services such as simulation to R&D outsourcing service vendors. This will lead to the growth of the global R&D outsourcing services market during the forecast period. Technavio's analysts have predicted that the research and development (R&D) outsourcing services market will register a CAGR of over 8% by 2023.
Maintaining in-house R&D services can be a costly affair for many enterprises, especially small and mid-sized (SMEs) in industries such as construction and consumer electronics. These enterprises incur significant overhead expenses, including training, equipment, and administrative costs. Such expenses can be eliminated by outsourcing R&D services to vendors. Outsourcing R&D services can enable enterprises to save costs on facilities or equipment used for research projects. Outsourcing of R&D processes also helps enterprises in gaining access to advanced technologies. Thus, outsourcing R&D services help enterprises in saving the cost of operations, which, in turn, will lead to an increase in demand for R&D outsourcing services.
Security is the most critical concern for enterprises that outsource R&D tasks to third parties. While outsourcing R&D tasks, enterprises must permit vendors to access confidential data. They do not have control over the internal processes, policies, and systems of R&D service providers and lack of awareness about the security protocols used. Giving access to confidential data to vendors can be a challenge for enterprises. The threat to data security and privacy might restrict enterprises from outsourcing their R&D tasks to vendors, which can impact the growth of the global R&D outsourcing services market during the forecast period.
For the detailed list of factors that will drive and challenge the growth of the research and development (R&D) outsourcing services market during 2019-2023.
The market appears to be highly fragmented. The presence of several companies, including HCL Technologies Ltd. and Infosys Ltd. makes the competitive environment quite intense. Factors such as the increasing need to focus on core competencies and the increased access to global talent pool by enterprises will provide significant growth opportunities to the research and development (R&D) outsourcing services manufacturers. Tata Consultancy Services Ltd., Tech Mahindra Ltd., and Wipro Ltd. are some of the major companies covered in this report.