This study forecasts fairly robust growth for the research and development (R&D)/product engineering (PE) services market in the long term as technology product customers look to outsource their product development and innovation work to outsourcing vendors. IDC forecasts that customers will increase their outsourcing spend in 2011 for these services. IDC estimates these services to reach approximately $58 billion in 2015.

Customers have increased their R&D/product engineering outsourcing spend as they witnessed increased sales and increased their R&D budgets in 2010–2011. Customers continue to look for partners that can leverage their own investment in cutting-edge intellectual property and provide them with services that will help launch new and innovative products at lower costs to end customers. The value proposition provided by R&D/product engineering services vendors will continue to find favor with customers. In order to increase adoption of these services, vendors should continue to innovate, invest in infrastructure, build and/or buy IP, hire and retain talent, set up proof-of-concept centers and centers of excellence, and provide industry-specific R&D/product engineering services to customers. Additionally, they should focus on appropriate messaging strategies to educate their customers about their capabilities.

TABLE OF CONTENTS

    Methodology
    Research and Development/Product Engineering Services Definition
    R&D/Product Engineering Services
    Product Life-Cycle Management
    Figure: Product Life-Cycle Stages
    Core Elements
    R&D/Product Engineering Services Included in This Forecast
    Target Industries
    Situation Overview
    Research and Development/Product Engineering Services Trends
    Figure: Research and Development/Product Engineering Services Ecosystem
    Future Outlook
    Forecast and Assumptions
    Worldwide R&D/Product Engineering Services Forecast
    Table: Top 3 Assumptions for the Worldwide and U.S. Research and Development/Product Engineering Services Market, 2011–2015
    Table: Key Forecast Assumptions for the Worldwide and U.S. Research and Development/Product Engineering Services Market, 2011–2015
    Table: Worldwide Research and Development/Product Engineering Services Spending by Region, 2005–2015 ($M)
    Figure: Worldwide Research and Development/Product Engineering Services Spending, 2005–2015
    Table: U.S. Research and Development/Product Engineering Services Spending, 2005–2015
    Figure: U.S. Research and Development/Product Engineering Services Spending, 2005–2015
    Table: Worldwide Research and Development/Product Engineering Services Offshore Spending, 2005–2015
    Figure: Worldwide Research and Development/Product Engineering Services Offshore Spending, 2005–2015
    Market Context
    Table: Worldwide Research and Development/Product Engineering Services Spending, 2005–2015: Comparison of December 2010 and December 2011 Forecasts
    Figure: Worldwide Research and Development/Product Engineering Services Spending, 2005–2015: Comparison of December 2010 and December 2011 Forecasts
    Essential Guidance
    For Customers
    For Outsourcing Vendors
    Learn More
    Related Research
    Methodology
    Historical Market Values and Exchange Rates
    Table: Exchange Rates, 2003–2010 (%)
    Synopsis