R&D outsourcing market to grow by $3.89Bn in 2028
NEW YORK, UNITED STATES — The global research and development (R&D) outsourcing services market is projected to grow at a compound annual growth rate (CAGR) of 8.11% between 2023 and 2028, increasing by $3.89 billion by the end of the period.
According to market research firm Technavio, the key driver fueling this growth is increased access to the global talent pool. R&D outsourcing provides companies, especially small and medium-sized enterprises, access to skilled workers worldwide instead of just their local region.
Market players like Wipro, HCL, Accenture, Altrair Engineering, and Capgemini have international reach and operations, allowing their clients to leverage diverse expertise.
The automotive segment is expected to see significant market share growth, as original equipment manufacturers rely on R&D to integrate new technologies like cloud computing and analytics into vehicles. R&D outsourcing providers can help identify areas for innovation.
However, quality issues pose a risk, as outsourcing means less control and visibility over the R&D process. Substandard work could harm an enterprise’s brand and discourage future outsourcing.
The report also forecasts that North America will contribute 45% of total market growth. Industries like aerospace, semiconductors, and consumer electronics are driving demand there. Market players are helping companies implement innovative solutions and enhance application management services.
Related news
- HSBC UK to shut Malta call center in 2024 · 18 Dec
- Serco forecasts higher 2024 profit on immigration demand · 18 Dec
- ibex’s Julie Casteel wins Stevie Award for advancing women’s careers · 18 Dec
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
