Product Type: Market Research Report
Published by: Ovum Plc
Published: March 2007
Product Code: R464-499Description The R&D services market is attracting more interest from vendors every day. In 2005 and 2006, IBM and TietoEnator announced significant contracts with Nortel (in North America) and Ericsson (in Europe) respectively. Indian vendors are making serious inroads in the high-tech industry. Finally, R&D specialists such as Segula Technologies and Alten are aggressively consolidating the market. However, it is a market that is set to be highly influenced by trends such as outsourcing, industrialisation, fixed pricing and offshore sourcing.Table of Contents - Key messages
- R&D services
- What are R&D services?
- Segmenting R&D services
- R&D services vs IT services
- Dynamics of the R&D services market
- Potential for growth is untapped
- But profitability levels are decreasing
- The paradox of the industry: price pressure and engineer shortage
- Clients tend to purchase R&D services as staff augmentation/body-shopping services
- Activity revolves around a limited number of key clients
- Clients are in different investment cycles
- Countries have different spending patterns
- Market evolution: challenges and opportunities
- Procurement offices will push for new offerings
- Staff augmentation will evolve
- Towards fixed price and work packages
- BPO will grow as an option
- Relocation of manufacturing will lead to offshore R&D
- The pharmaceutical industry as the next frontier
- The US will seriously change the European industry
- Recommendations for players
- The convergence of IT and R&D: opportunity for IT services players
- Solutions and software products
- International presence as differentiator
- Appendix 1: definitions
- Segmentation by industry served
- Segmentation by engagement type
- Areas of overlap with other forms of services
- Table of figures
- Figure 1 The four pillars of R&D services
- Figure 2 R&D services: range of services
- Figure 3 Differentiating between IT services and R&D services
- Figure 4 Operating margins of main listed French R&D service players in their domestic operations
- Figure 5 Largest European R&D (internal and external) budgets in 2005
- Figure 6 Key trends by vertical market
- Figure 7 The R&D services market in five years
- Figure 8 The age pyramid in five years: implications for staff augmentation players
- Figure 9 The impact of offshore: a simplified view
- Figure 10 Breakdown of R&D spending by vertical in Europe
- Figure 11 Breakdown of R&D spending by vertical in Europe
|
|
