Tag: Engineering Services

Analyst Relations Newsletter Q3 2017 | Key Highlights from Custom Research

Case Study I: Everest Group supported the India GIC of a global top-5 technology company in its growth plans for software product engineering teams leveraging digital skills

Client overview and background: As the client was preparing for growth of its India delivery center, it was evaluating opportunities to expand the scope of services delivered in the GIC, especially in software products based on new horizon skills areas (e.g., cloud, mobility, SoA, big data and analytics, design-thinking, customer-centric engineering). The client sought support in identification and prioritization of key talent investment areas involving product engineering based on expected future business needs and market evidence of successful delivery models, capabilities, and services maturity at GICs of peer technology/internet software companies.

Our approach: Everest Group assessed the current talent model and team capabilities in product engineering skills at the client GIC and also conducted a detailed market assessment of how GICs at peer companies are leveraging the India delivery centers (scale, penetration, breadth, and complexity, and level of ownership of global service delivery for product development and digital skills). We identified gaps in the talent model and skills-sets at the client GIC across specific roles, skill-sets, and level of ownership/maturity. Everest Group presented perspectives on key thrust areas for investment and industry momentum in skills/role development by peer GICs. We also identified growth opportunities for client and provided best-in-class examples of increasing ownership and growing talent on niche skills (e.g., data scientists).

Client benefits: Everest Group identified and prioritized skill-areas for investment based on gaps in the client’s current delivery talent/skills portfolio for software product engineering and level of maturity achieved at peer GICs. Through a series of discussions with the client’s leadership in India and the U.S., Everest Group guided the client’s internal thinking on how to grow talent for niche digital skills and establish product engineering teams with higher level of global product ownership.

Case Study II: Everest Group Supported a large European engineering company in an assessment of the talent landscape in the Indian city of Bangalore. This was for a new engineering and R&D center the firm wanted to set up in the city

Client overview and background: The client was facing challenges in hiring mid-level talent in its home markets owing to reducing enrolments in STEM. It was looking to offshore high-end design, engineering, and innovation work and identified Bangalore as a location for setting up its in-house / shared services center. To be better prepared for this, the client wanted a comprehensive assessment of the talent landscape in the city across the following aspects: availability of talent across 7 functional areas, key competitors for talent (including Indian engineering companies), future outlook for talent sustainability, workforce preferences for office location within the city, employee value drivers in choosing an employer, and benchmarking of compensation and benefits.

Our approach: Everest Group conducted in-depth desk research to size talent (at both entry- and experienced-levels) across the 7 functions in focus. This was followed by primary research with engineering companies operating in Bangalore, recruiters, industry experts, and a cross-section of employees to analyze aspects such as future outlook for talent sustainability, employee value drivers, and workforce preferences. Finally, we conducted a compensation and benefits benchmarking assessment in collaboration with a recruitment firm.

Client benefits: The client leveraged this in-depth study to set design parameters for its new delivery center. The mapping of functional areas by scalability and level of possible congestion in the future helped identify possible constraints and frame appropriate mitigation mechanisms (e.g., invest in training, move talent from home market). Our research also enabled the client identify the sources for talent (universities, competitors, other adjacent industries) and the optimum level of compensation/benefits across functional areas and seniority. Finally, the assessment on employee value drivers helped the client finalize the optimum value proposition for candidates.

Engineering Services Providers Offering Significant Value in Quality Management | Market Insights™

QA in ES Dgtl sig value

Engineering Services providers are enabling enterprises to:
Reduce cost
Localize and gain access to new markets
Access expertise and mitigate risk through specialists
Adhere to complex regulatory policies and security standards
Improve efficiency and quality
Ensure speed-to-market
Overcome internal capacity constraints
Develop quality management as a strategic process

Visit the report page

Product Quality Management: You (Don’t Have To) Walk Alone | Sherpas in Blue Shirts

My most recent blog focused on why quality management (QM) is a critical contributor to enterprises’ ability to take great products to market. Now, let’s turn our attention to who can – indeed, perhaps should – perform product QM work for organizations.

Viewing QM activities as a core competency, enterprises have traditionally conducted them in-house. In some cases, they’ve engaged their global in-house centers (GICs) to handle some aspects of QM in order to reap the benefits of factors such as talent access and cost arbitrage, while still retaining control over issues such as IP protection and close integration with the parent entity, which is key for product design and development.

However, the advent of innovative engagement models (e.g., outcome-based pricing, collaborative IP, etc.), the pervasiveness of digital technologies, and advancements in data and IP security measures are instilling confidence among enterprises to partner with third-party service providers for their product QM activities. Recent investments by service providers in building IP and enhancing their capabilities in this space – spurred in part by slowing growth in more traditional ITO and BPO areas – is strengthening their case with enterprises. Indeed, Everest Group research shows that global sourcing in the QM space will grow at an impressive 16 to 18 percent through 2020 – higher than the growth expected in the global sourcing space for overall engineering services.

Following are some of the ways in which third-party service providers can deliver product QM value to clients.

 

Engineering Services, Product Quality Management, Quality Management, Quality Management Services

 

Of course, outsourcing product QM does come with risks and challenges. Factors that enterprises should consider when weighing a product QM outsourcing decision include:

 

Engineering Services, Product Quality Management, Quality Management, Quality Management Services

 

When evaluating a particular outsourcing service provider for product QM work, enterprises should evaluate factors including talent availability, infrastructure availability, delivery capabilities, ability to scale up/down, innovation-focus, expertise in digital themes, inclination towards outcome-based business models, and client satisfaction.

Everest Group has conducted deep-dive research on the global sourcing landscape in the product engineering space, covering all the activities involved in the validation, verification, and testing of both hardware and software across the product lifecycle. We have studied twenty-three of the leading engineering service providers in the QM services space, and have analyzed them on parameters including capabilities, scale and scope of services, and IP/investments. Following is a sneak peek into our relative analysis of these players based on their engineering services play, revenue and revenue growth, and coverage of QM services.

 

Engineering Services, Product Quality Management, Quality Management, Quality Management Services

 

Please click here to read a preview of our report, “Identifying the Right Partners for Quality Management in the Engineering Services Industry – Service Provider Landscape.”

Quality Management in Product Engineering: You Just Can’t Afford to Ignore It | Sherpas in Blue Shirts

What do products like the Samsung Galaxy Note 7, the Toyota Corolla/Yaris (in 2016), and the Fitbit Force (in 2016) have in common? All were potentially great products that cost their companies dearly – in both image and money – due to faulty performance resulting from poor quality management.

Enterprises have come to realize the significance of quality as an indispensable ingredient for creating impactful products. They not only view product quality management as a cost-saving measure (preventing the costs of rework, wastage, regulatory breaches, warranties, product recalls, etc.) but also as a way of accelerating product launches and creating a differentiating value proposition in increasingly commoditizing markets. Given the vast intermediation of product supply chains among vendors, technology partners, assembly partners, and logistic partners in today’s operating environment, the need for quality management activities is even more pronounced as products flow from one stakeholder to another.

Yet, despite acknowledging the positive impact of product quality management, many enterprises grapple with fully integrating, and regularly upgrading, their quality management initiatives across business activities. Some reasons for this are:Quality Management, Quality Management Services, Product Quality Management

To counter these issues, enterprise stakeholders need to commit to quality management as seriously as their other business mandates (innovation, margins, etc.) They should also be open to the idea of partnering with external entities and service providers in areas where their internal capabilities fall short on yielding the desired levels of quality standards.

Product Quality Management in the Digital World

Digital themes like mobility, IoT, and data analytics are enabling enterprises to build new capabilities in their products and enhance the customer experience. The advent of IoT and automation has also led to a transformation of production processes, wherein enterprises can build their products more smartly and with shorter turnaround times.

However, many enterprises face initial failures in bringing robust digital products to market because they tend to focus only on developing digital products, completely ignoring the need to adapt the underlying processes to ensure the reliability and quality of these products. This is the same as having a Euro Standard VII vehicle engine ready for market, but not having focused one bit on developing compatible fuels. We all can guess how successful (at least in the near term) these engines will be.

Digitization has thus ushered in a new era of product quality management, where capabilities need to be enhanced for testing more sophisticated products while factoring in for data management and security. Further, advancement and automation of production processes is creating the need for redefining metrics and KPIs for quality management.

So, what immediate steps should enterprises take to develop digital-ready and digitally-enabled quality management activities? They include:Product Quality Management, Quality Management, Quality Management Services

Everest Group has conducted deep-dive research on quality management services in the product engineering space, covering all activities that are involved in the validation, verification, and testing of products (hardware or software) across the product lifecycle. The research covers the market landscape of quality management services, and delves into the role of digital technology themes in reshaping the way enterprises look at their product quality management efforts. Read a preview of our report, “In Pursuit of Product Excellence: Quality Management in the Engineering Services Industry.”

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