Leading European Locations for Global Delivery of Engineering Services

In recent years, engineering services has experienced steady growth across enterprise spend and global sourcing. Enterprises continue to invest in emerging technologies (such as AI, blockchain, nanotechnology, and 5G) and combine them with traditional engineering areas to create connected and intelligent products and new enhanced services/operations. Global Business Services (GBS) organizations and service providers need to support enterprises in this journey and continue to introduce new service delivery constructs in a sustained manner.

To remain competitive, GBS organizations and service providers need to continually review their location strategies and develop a delivery portfolio aligned with their go-to-market agenda. Engineering services (especially product and next-generation engineering) delivery requires a more regional approach, due to the need for more personalized and local products. Offshoring is gradually shifting toward nearshoring due to the rising demand for customer, geographical, and cultural proximity.

Europe provides a strong multilingual workforce, comfortable time zones (similar to buyer geography), skilled next-generation professionals, favorable operating and business environments, and an affordable pricing model. This report provides a comprehensive view of leading locations or hotspots across Europe for supporting the global delivery of engineering services.