SANTA CLARA, California and BANGALORE, India, December 17, 2018
SANTA CLARA, California and BANGALORE, India, December 17, 2018 /PRNewswire/ --
Zinnov, a leading management and strategy consulting firm, today released its global rankings of Services Providers in the ER&D segment for 2018. The study titled, 'Zinnov Zones 2018 - ER&D Services,' is an analysis of the Global Engineering R&D landscape, emerging players and verticals, and assessment of Service Providers in this space. According to the study, the total Corporate Engineering and R&D spend by organizations worldwide is pegged at USD 1.2 Tn in 2018 and is expected to grow at a CAGR of 6+% to cross USD 1.7 Tn by 2023. Digital Engineering is expected to drive growth in Corporate ER&D spending over the next 5 years and to define the new core of companies across industries.
There is an increased focus on Digital Engineering in verticals such as automotive, aerospace, medical devices, and industrial to drive operational efficiencies and enhance customer experience. This is also enabling alternative revenue streams for enterprises. This continued focus on Digital Engineering across verticals will boost related spend at a CAGR of 17% through the next 5 years and Digital Engineering spend will grow from a current USD 293 Bn in 2018 to touch USD 642 Bn by 2023.
Zinnov also shared that, Digital Engineering is also being seen as a means to "Renew the old" and "Build the new" by R&D spenders. However, transformation through Digital Engineering is not easy as there are challenges associated with legacy complexities, change management, cannibalization concerns, etc. These challenges, however, are translating to sizeable opportunities for the ER&D Service Provider community. R&D spenders are leveraging ER&D Service Providers to "manage the old" by means of large product and GIC carve-out programs, "renew the old" through modernization, and "build the new" to enhance their products/services portfolio.
Speaking about the findings, Pari Natarajan, CEO, Zinnov, said, "Even though Traditional Enterprises have been increasing Digital Spend, only Tech Mafias have been successful with Digital Innovation, until now. Traditional enterprises need to use a multi-pronged strategy to combat the disruption and transform simultaneously. They need to embrace iterative product innovation, extreme agility, continuous learning collaboration - internal and external and also create highly collaborative environments. This will help drive transformation in a definitive way."
On Service Providers building Digital Engineering capabilities, Pari added, "Service Providers need to invest along multiple dimensions such as infrastructure, ecosystem connects, IP, talent, etc., to build Digital Engineering capabilities to drive competitive differentiation. Those Service Providers who focus on embedding digital technologies with digital outcomes and build deep capabilities to drive transformational change will succeed."
About the Study:
The study titled, 'Zinnov Zones 2018 - ER&D Services', analyzed the Global ER&D market and trends from both the Spenders' and Service Providers' perspectives. The report covers a detailed market overview and a deep-dive on Digital Engineering priorities by vertical.
The ER&D Services report assessed 38 Service Providers for their ER&D prowess. The SPs have been assessed for their capabilities across:
About Zinnov Zones:
Zinnov Zones is an annual rating published by Zinnov which rates ~40 global Service Providers on their Engineering R&D prowess. Since 2009, Zinnov Zones (previously known as GSPR - Global Service Provider Ratings) has become one of the most trusted reports globally, for both enterprises and Service Providers to better understand the vendor ecosystem in multiple domains, such as Digital Transformation, ER&D services, IoT, RPA, and Media & Entertainment.
Founded in 2002, Zinnov is a global management and strategy consulting firm, with presence in Silicon Valley, Houston, Bangalore, and Gurgaon. Over the past 16 years, Zinnov has successfully consulted with over 250+ Fortune 500 customers to develop actionable insights that help them in their transformation journeys. With core expertise in Product Engineering and Digital Transformation, Zinnov assists clients by:
With their team of experienced professionals and research teams, Zinnov serves clients from across software, semiconductor, consumer electronics, automotive, storage, telecom & networking, healthcare, banking, financial services, and retail verticals in US, Europe, Japan, and India.
For more information, visit http://zinnov.com