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Mastering Engineering Service Outsourcing in the automotive industry

2010

The pressure on original equipment manufacturers (OEMs) and original equipment suppliers (OESs) is growing steadily.

Engineering service outsourcing (ESO) offers flexibility and cost-saving potential for OEMs and OESs. Both must reduce development costs and leverage engineering outsourcing to benefit from gains in flexibility and efficiency. Emerging market players in particular provide the right assets, in terms of both a low-cost engineering workforce and superior low-budget vehicle design concepts.

Due to a steep learning curve, they increasingly advance into the high-end segment, urging established market players to engage in low-cost engineering.

Roland Berger Strategy Consulting has conducted a market survey among leading automotive managers to unveil major trends and successful business practices in engineering outsourcing. Based on their findings, the experts have formulated comprehensive insights and recommendations for both the OEMs/OESs as well as the engineering service providers.

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