Sixth edition of global list, shines a spotlight on the largest third-party Engineering Services (ES) providers, based on their revenues and year-on-year growth.

DALLAS, Sept. 5, 2024 /PRNewswire-PRWeb/ — Leading global research firm Everest Group has released its yearly “Everest Group Engineering Services Top 50™” list, with its subsequent report, highlighting signs of steady growth for the overall market. 

Focusing on high-performing organizations in the software product, manufacturing, embedded engineering, mechanical engineering, and networking engineering services space, the prestigious list features engineering services (ES) firms that support the design, development, testing, and management of products, both in hardware and software. 

The ES Top 50 2024 report ranks the largest service providers based on their calendar year (CY) 2023 engineering services revenue and year-on-year growth. Only the top 50 by revenue (CY 2023) are considered, with rankings determined by both absolute and percentage growth, ensuring a clear view of the industry’s leading and most dynamic players.

This report offers a clear and objective snapshot of the third-party services market, comparing ES providers and highlighting their strengths. It assists enterprises in identifying leading providers and evaluating their functional coverage, while also offering those providers a means to benchmark themselves against peers. Private equity and venture capital firms find it equally valuable.

In a landscape where outsourcing has grown slowly since 2022, ES providers are scaling up through strategic acquisitions and enhanced engineering capabilities.

Key growth trends include the rise of platformization, software defined everything (SDX), generative artificial intelligence (AI) experiments, connected products, Industry 4.0, and the increasing emphasis on sustainability and green tech in software and digital engineering.

After finishing in the top spot in 2023, French technology services and consulting firm Capgemini has retained its crown in 2024.

Indian firm KPIT has become the fastest growing provider over the last 12 months, which was also reflected in their move up the top 50 rankings, taking them up 20 places from the previous year.

With four of the “top six” in the prestigious list coming from Europe, there is no surprise that firms headquartered in this continent are also growing the most (11.8%), as well as holding the largest share of revenue for engineering services. In comparison, their APAC counterparts, have seen a slightly slower growth rate of 10%, with North American firms typically growing at a slower rate of 6.3%. 

*Download your complimentary copy of the 2024 Everest Group ES Top 50 list and analysis*

  There was plenty of growth to report on within the top 50, most notably KPIT, which jumped from 38th to 18th. IAV also climbed 17 spots from 41st to 24th, with TATA Technologies rising 14 places from 36th to 22nd.

Cyient also went from 31st to 20th, and Segula Technologies moved up from 34th in 2023 to 26th in 2024. Approximately 24% of the rankings changed by five or more positions in the 2024 listings, compared to 26% last year, implying lower volatility in the performance of the listed providers this time around. 

The Everest Group Engineering Services Top 50™ list represented 89% (~US$70 billion) of the estimated US$78 billion in total outsourced spending in 2023. Despite a global slowdown in growth, the ES Top 50’s share of the global engineering services market total revenue improved by 8% points from the previous year, with this upturn encouraging experts that there are signs of further improvement and growth in the year ahead. 

Akshat Vaid, Partner at Everest Group, said:  

“Our latest Top 50 list reflects a market characterized by steady, incremental growth rather than its typical rapid expansion.

Recognizing the enterprise focus on cost efficiency and short-term return on investment (ROI), providers have shifted their focus toward greater agility in handling high-velocity, smaller deals instead of concentrating on fewer large contracts.

They have also strategically leveraged acquisitions and invested in emerging technology innovations. Notably, European firms have played a pivotal role in sustaining overall industry momentum amid a challenging global landscape.”

Much of the recent market growth stems from the innovation and strategic moves made by leading providers over the past year. Top players have upscaled and expanded into niche capabilities, while others have forged new partnerships and targeted emerging markets or strengthened their presence in nearshore regions. These efforts are paving the way for continued market growth into 2025 and beyond.

About the Everest Group Engineering Services Top 50™ 

The Everest Group Engineering Services Top 50™ is a global list of the 50 largest third-party providers, based on their ES revenues and year-on-year growth. Revenues comprise 75% of the composite score used for ranking. Growth comprises 25% and has two sub-parameters: absolute growth (measured as change in ES revenue in US$ million and accounting for 12.5% of the composite score) and percentage growth (measured as percentage change in ES revenue and accounting for the final 12.5% of the composite score). 

About Everest Group 

Everest Group is a leading global research firm helping business leaders make confident decisions. We guide clients through today’s market challenges and strengthen their strategies by applying contextualized problem-solving to their unique situations. This drives maximized operational and financial performance and transformative experiences. Our deep expertise and tenacious research focused on technology, business processes, and engineering through the lenses of talent, sustainability, and sourcing delivers precise and action-oriented guidance. Find further details and in-depth content at http://www.everestgrp.com.

Media Contact

Public Relations Everest Group, Everest Group, 214-451-3000, PublicRelationsEverestGroup@everestgrp.com, www.everestgrp.com 

James Burch, Everest Group, +44 (746) 757-1806, james.burch@everestgrp.com, www.everestgrp.com 

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SOURCE Everest Group