global service provider ratings 2015 for · pdf filerelationships they have built with their...

Copyright © 2016 Zinnov Management consulting

This document has been licensed for exclusive use and distribution by Cyient

GLOBAL SERVICE PROVIDER RATINGS 2015 FOR PRODUCT ENGINEERING

SERVICES

An Analyst Point of View of CyientJanuary, 2016

Current addressed ER&D market through

offshore in-house R&D centres

Addressed ER&D globalization & services market

through outsourcing partners

*Opportunity includes market for Captives , Offshore R&D Service Providers and Onshore R&D Service Providers

USD

215Billion

Addressable Market*

Total Addressable R&D

Globalization and Services

opportunity

USD

67Billion

Total Addressed R&D Globalization

and Services Market

USD

31Billion

USD

36Billion

Addressed Market

Source: Zinnov Research & Analysis

The Addressable Engineering and R&D Globalization and Services Opportunity

Stands at USD 215 Billion

2

Product Engineering Services Growth Rate (in USD Billions)

FY 2014 FY 2015 FY 2020(E)

9.89% 13.7%

Growth rateGrowth rate

(Expected)USD

18.2Billion

USD

20Billion

USD

38Billion

8.3%

12.67% 13.97%

13.3%

- In-house R&D Centers

- Service Providers

$11.31

Billion

$6.89

Billion$7.76

Billion

$12.25

Billion

$22.9

Billion

$14.9

Billion

FY 2014 FY 2015 FY 2020(E)

India’s ER&D Globalization and Services Market is Expected to Reach $38 Billion by

2020

3Source: Zinnov Research & Analysis

0.58

0.78

0.300.37

0.270.20

0.30 0.28

1.711.66

0.66

0.91

0.310.42

0.310.24

0.370.30

1.96

1.79

Aerospace Automotive Computer

Peripherals

& Storage

Consumer

Electronics

Energy &

Utilities

Industrial

Automation

Medical

Devices

Semiconductors Software/

Internet

Telecom

Indian Service Provider Vertical Growth Rate

FY 2014 FY 2015

13.4

%12.9

%

17.2

%

5.69

%

12.1

% 19.1

%

22.5

% 4.22

%

14.3

% 7.88

%

Insights

The emergence of newer

players in the automotive

space and autonomous cars

gaining momentum is leading

to increased outsourcing in

the automotive vertical

The increasing demand for IoT

and software and embedded

content in devices is driving

outsourcing in Hi-Tech

verticals

Focus on development of 5G

is driving outsourcing in the

telecom vertical

The ISV and Telecom Verticals Continue to Dominate the Indian Outsourced

Market with the Automotive Vertical Catching up Quickly



Telecom, ISV and Automotive are Among the Most Mature and Competitive

Verticals for Service Providers

Mature

Telecom

Transport

Aerospace

Industrial Automation

Placid GrowthEmerging VerticalNascent Vertical

Industry Maturity

# P

laye

rs

Automotive

Vertical Maturity Levels of Indian Service Providers

Size of the bubble indicates the addressed market size

Software & Internet

Semiconductor

Medical Devices

Consumer Electronics

Construction & Heavy Machinery

Energy &Utilities

Consumer Peripherals and Storage

5

FIVEKey trends

in Global

Engineering

R&D

Services

4

123

Service providers are building end-to-end and cross-horizontal capabilities through

the acquisitions of niche engineering services firms.

Germany-based R&D spenders, particularly automotive companies, are increasingly

exploring offshoring/nearshoring to service providers in low-cost locations.

Europe-based service providers are aggressively looking at scaling up or setting offshore

operations in India to access India’s cost-effective, large talent pool.

India-based engineering R&D service providers are building newer capabilities in support engineering

functions such as supply chain, regulatory compliances and manufacturing.

Global companies are investing in strategic partnerships with R&D service

providers for experimenting with the IoT product roadmap.5Source: Zinnov Research & Analysis

The Drivers for Outsourcing Have Changed Drastically Over the Past Few Years and

Newer Trends Have Emerged

6

Cyient is a global provider of engineering, manufacturing, data analytics, networks and operations solutions. Cyient partners with

organizations in ways that best suit their culture and requirements, functioning as their extended team. The long and deep-rooted

relationships they have built with their clients is a testimony to this fact.

Besides traditional strengths in mechanical engineering and geospatial domains, Cyient has built strong capabilities in engineering analytics,

IoT/M2M, and electronics system design and manufacturing services (ESDM), which positions them uniquely in the engineering

services market.

Cyient Has Established Itself as a Leader and One of the Preferred Engineering

Service Providers Globally

7

Cyient has built the most diversified and scalable aerospace & defence offshore engineering services practice. Cyient’s capabilities and profound

expertise across the entire aircraft life cycle, from design, development & testing to manufacturing, engineering and aftermarket support services

positions them well as a unique, full-stack integrated engineering services provider.

Cyient, with its end-to-end capabilities across the aircraft life cycle, and strong collaborations with the engineering ecosystem in India, can be a

capable enabler to the Make in India program by helping companies in design-led manufacturing and in product transition to India, from across the

global supply chain.

The acquisition of Rangsons Electronics has helped build expertise across the entire product life cycle, starting from conceptualization to serial

manufacturing and aftermarket support, further strengthening its position in verticals like aerospace, consumer electronics, semiconductor and

medical devices and also enabling Cyient to partner with R&D spenders across end-to-end product development, prototyping, and manufacturing.

Cyient has effectively leveraged its delivery centres in Tier-2 locations to deliver high-value services at higher cost arbitrage.

The primary differentiators that set Cyient apart are :

GSPR 2015- Overall Ratings

8

Niche

Expansive

Specialization, R&D Practice Maturity (depth and breadth of services), Innovation & IP, Eco-System Linkages

Sca

le, #

of V

ertica

ls s

ervi

ced, C

lient Spre

ad Tech Mahindra

HCL

Wipro

Cyient

Infosys

L&T TS

Persistent

Systems

TCS

KPIT Technologies

Tata Technologies

Altran

Alten

EPAM

Luxoft

Aricent

Genpact

QuEST Global

IGATE

Tata Elxsi

HARMAN Connected Services

Mindtree

Beyondsoft

Emerging Established

Harbinger

Innominds

`

Xchanging

Happiest

Minds

Infinite

Infogain*Hughes Systique

Pactera

Ness Software Engineering Services

VirtusaAspire

Systems

GlobalLogic

eInfochips

Cybage

Sonata

Software

Cognizant

Assystem

Akka Technologies

Sasken

GlobalEdge

Complete participation by service provider

Partial participation by service provider


GSPR 2015- Embedded Systems Ratings



Niche

Expansive


Sca

le, #

of V

ertica

ls s

ervi

ced, C

lient Spre

ad

Wipro

HCL

Luxoft

Cognizant

L&T TS

KPIT

Technologies

TCS

HARMAN

Connected Services

Tata Elxsi

GlobalLogic

Tech Mahindra

QuEST Global

Mindtree

IGATE

Sasken

Infinite

BeyondSoft

Tata Technologies

Hughes Systique

Innominds

eInfochips

EPAM

Xchanging

Happiest Minds

Altran

Alten

Pactera

Infosys

Aricent

GlobalEdge

Cyient

Complete participation by service provider

Partial participation by service provider

GSPR 2015- Mechanical Ratings

10


Niche

Expansive


Sca

le, #

of V

ertica

ls s

ervi

ced, C

lient Spre

ad

KPIT

Technologies

HCL

TCS

L&T TS

Tech Mahindra

QuEST Global

Wipro

IGATE


Tata Elxsi

Infosys

Altran

Alten

Beyondsoft

Assystem

Akka

Genpact

Complete Participation by Service Provider

Partial participation by Service Providers

Tata Technologies

Cyient


Cyient is Part of the Established and Expansive Segment of Engineering Service

Providers

11

Vertical Key Expertise AreasMarketPosition

Zinnov’s Analysis

Automotive Infotainment and Telematics Breakout ZoneNiche and focused practice structured around a few strategic clients with strong expertise in GIS and navigation systems, and location-based services application development.

Aerospace & Defence Aero Engines and Embedded Avionics Leadership ZoneOne of the market leaders in this vertical, Cyient has built a truly diversified practice catering to multiple large clients and offering end-to-end services across the aircraft life cycle.

Consumer Electronics Domestic Appliances Breakout ZoneMature capabilities in mechanical and electronics design services for domestic appliance customers.

Construction & Heavy Machinery

Construction Equipment, Mining Equipment

Leadership ZoneCyient has built the most mature offshore engineering services practice in the construction vertical with deep-rooted relationships with key outsourcers.

Energy & UtilitiesUtilities, Smart / Digital Energy

ManagementLeadership Zone

Exceptionally strong capabilities in the utilities and smart grids domain, augmented by a deep experience of working with some of the largest utilities players.

Cyient GSPR Positions Across Different Verticals 1/2

12

Vertical Key Expertise AreasPosition in

MarketZinnov’s Analysis

Medical DevicesAnalytical and Laboratory

Instruments, Homecare Devices/ Connected Healthcare

Execution Zone

Cyient has an emerging practice in medical devices. The Rangson’s acquisition has helped them add concept-to-manufacturing capabilities and position well as an end-to-end technology partner.

SemiconductorsBoard/System Design, FPGA Prototyping, Physical Design

Execution Zone

As a niche and emerging player in the semiconductor design service space, Cyient has built in-depth design expertise across all semiconductor markets and created a unique ecosystem through partnership with IP and foundry partners.

Telecommunication Network Operations and Planning Execution ZoneCyient stands out as one the leaders in the network operation and planning space, having experience of working with multiple large-scale network service providers.

TransportElectronics and Control Systems,

Exterior WorkLeadership Zone

Cyient is a leader in the transport vertical, relying heavily on mechanical, embedded and electronics capabilities. Transport has been one of the strongest verticals for Cyient with a diversified practice catering to some of the biggest transport product manufacturers.

Cyient GSPR Positions Across Different Verticals 2/2

13

Cyient holds a diverse and mature suite of IPs, frameworks and accelerators, which differentiate it from other service providers

Cyient Key Technology Differentiators

14

AEROSPACE ENGINEERING

SOLUTIONS

• Cyient delivers aerospace

engineering solutions from concept

to qualification, with system-level

ownership for engines, avionics

systems, structures, aero systems and

interiors.

• The solutions also involve

management of aftermarket value

streams such as repair engineering,

reliability engineering, technical

documentation and performance

monitoring on behalf of original

equipment manufacturers worldwide.

• Cyient follows a collaborative

engineering approach that combines

domain expertise, process rigor,

design automation and program

management skills to deliver system-

level services.

ACQUISITION OF PRATT & WHITNEY

GLOBAL SERVICES ENGINEERING ASIA

• Cyient acquired the Global Services

Engineering division of Pratt &

Whitney, based in Singapore. This site

provides repairs, development and

validation for aero gas turbine engine

components.

• It also caters to gas-turbine-based air

propulsion systems, international

aerospace tubes and turbine overhaul

services among others.

• With the help of this acquisition,

Cyient has been growing its

aerospace aftermarket services in the

region and expanding its reach into

other industries within Singapore.

DEVELOPMENT OF SMART GRIDS

• Cyient offers a wide range of niche

technology solutions and services

aimed at providing seamless

implementation and integration of

core OT applications.

• The enterprise geospatial solutions

provide an integrated systems view of

utilities’ business processes that

translate into significant cost savings

and increased revenues for clients.

• The IT/OT convergence of capabilities

allows Cyient to deliver unique value

and business benefits to the core

utility business.

ACQUISITION OF RANGSONS

ELECTRONICS

• The acquisition strengthened Cyient's

capabilities into high-technology,

low-volume, design-heavy systems

and solutions that are in line with its

S3 (services, systems and solutions)

strategy.

• Rangsons Electronics is an electronics

system design and manufacturing

(ESDM) company providing a range

of services from design-to-

production to end-of-life support.

• Rangsons Electronics has built a

leading platform within the

electronics segment with client-

centric service delivery, driven by

quality systems. This is

complementary to Cyient’s global

engineering solutions business

backed by strong technology and

ethos.

Strong mechanical and electronic capabilities in multiple industries across the entire

engineering services value chain has made Cyient one of the preferred offshoring

partners of OEMs and Tier-1 suppliers.

The recent acquisition of Rangsons Electronics has helped Cyient to expand its core

business while deepening partnerships with Original Equipment

Manufacturers(OEMs). It will also help Cyient to position itself as a strong integrated

engineering offset partner.

Cyient is one of the few preferred partners in the aerospace vertical by OEMs due to

its deep expertise in the domain, strong partner relationships and capabilities across

the entire product life cycle from design to manufacturing, engineering to

aftermarket support services.

Cyient has built a strong foundation and reputation with its innovative and

collaborative culture, highly customer-centric approach, optimized total cost of

ownership, strong competence in focus industry segments, flexible design capacity

to meet program needs and cross-border engineering with a global footprint.

Key

Opportunities

With the ‘Make in India’ campaign gaining

momentum, Cyient has a great opportunity to

be one of its the biggest contributors. Cyient is

uniquely positioned to benefit from the Indian

government’s procurement guidelines to source

defence products from Indian entities, with

prescribed indigenous content. This, coupled

with the introduction of the IDDM category in

DPP 2016, can lead to more opportunities for

Cyient.

Cyient also has great potential to tap the

M2M/IoT opportunity, given its expertise in data

collection strategies, service operations

management capabilities, and the right set of

advanced analytics tools.

A Global Presence, Continuous and Proactive R&D Investments and a Strong IP

Portfolio Has Led to Cyient’s Overall Growth

15

Strengths

GSPR 2015 VERTICAL RATINGS

16

GSPR 2015- Aerospace Ratings

17

Nurture Zone Breakout Zone Execution Zone Leadership Zone

Tech MahindraWipro

TCS

Tata Elxsi

• Capable of performing concept to market for

the product

• Significant investment in lab infrastructure

• Niche capability across mechanical, embedded

and software services

• Formal innovation culture, resulting in IP’s and

strategic innovations

• Leadership role in alliances, leverage startups,

specific academic research, and co-creation

with clients

• Capable of delivering complete product

development as a true engineering partner

• Co-investment with customers in R&D labs

• Niche capability spans across two service types

and at least generic capability level in one

service type

• Reusable IP’s built, and benefits quantified

• Alliances with clients who are industry leaders

• On the way into the big league, delivering R&D

services effectively,

• Basic tear down, purpose-fit labs

• Generic capability across mechanical, embedded,

and software services and niche capability in one

area

• Innovation frameworks resulting in a tangible

benefit to clients

• Specific industry alliances, partnerships and

membership in global forums

• R&D and PES as focus area

• Niche capability in one type of PES service

(mechanical/embedded/software)

• Innovation limited to process optimization

• Generic - MoUs with universities and alliances

HCL

eInfochips

L&T TS

Cyient

Low

High

Scalability

R&D Practice

Maturity

Zinnov Zones – Leading Service Providers

Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Tata

Technologies

InfosysGenpact

Altran QuEST GlobalAlten

Assystem

Akka Tech

Partial Participation by Service Provider


GSPR 2015- Energy & Utilities Ratings



Cyient

L&T TS

Tech Mahindra

TCS

Luxoft

Wipro

Infosys

QuEST Global

IGATE

EPAM

Low

High

Scalability

R&D Practice

Maturity


Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

HCL

HARMAN

Connected ServicesGenpact

Innominds

Altran

Alten


the product








with clients






service type



• On the way into the big league, delivering

R&D services effectively,


• Generic capability across mechanical,

embedded, and software services and niche

capability in one area


benefit to clients



• R&D and PES as focus areas





GSPR 2015- Medical Devices Ratings



HCL

Wipro

L&T TS

HARMAN Connected

Services

IGATE

GlobalLogic

Cyient

TCS

Tech Mahindra

QuEST Global

Tata Elxsi

eInfochips

Low

High

Scalability

R&D Practice

Maturity

Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Infosys

Altran

Alten


the product








with clients






service type








area


benefit to clients








GSPR 2015- Semiconductor Ratings

20


HCL

TCS

Sasken

Mindtree

Tata Elxsi

Cyient

• Capable of performing concept to market for the

product

• Significant investment in Lab infrastructure




Specific academic research, and co-creation with

customers


development as a true engineering partner,







benefit to clients






L&T TS

Wipro

eInfochips

GlobalLogic


Aricent

QuEST Global

Happiest Minds

Low

High

Scalability

R&D Practice

Maturity


Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Xchanging

Innominds

Infosys

Ness

Software Engineering Services

GlobalEdge


GSPR 2015- Telecommunication Ratings



Aricent

Wipro

TCS

Mindtree

Sasken

GlobalLogic

Beyondsoft

L&T TS

Tech

Mahindra

Tata Elxsi

HCL

Pactera

HARMAN

Connected Services

Infinite

Cyient

Happiest

Minds

Low

High

Scalability

R&D Practice

Maturity


Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Hughes

Systique

EPAM

Infosys

Cognizant

Innominds

Alten

GlobalEdge


the product








with clients






service type


• Alliances with Clients who are industry leaders






area


benefit to clients








GSPR 2015- Consumer Electronics Ratings



HCL

Xchanging

Sasken

Wipro

L&T TS

Tata Elxsi

IGATE Mindtree

Infosys

• Capable of performing concept to Go-To-

Market for the product –Significant investment

in Lab infrastructure

• Niche capability across Engineering, Embedded

and Software services




Specific academic research, and co-creation

with customers


development as a true engineering partner,

Customer Labs



service type




services effectively, tear down , purpose fit labs

• Generic Capability across Engg, Embedded and

Software services and Niche capability in one

area


benefit to customers


membership in Global forums



(Engineering / Embedded / Software)

• Innovation, if at all, in process optimization


TCS

BeyondSoftTech Mahindra

GlobalLogic

HARMAN Connected

Services

Aricent

Ness


Hughes SystiqueCyient

Happiest MindsLow

High

Scalability

R&D Practice

Maturity


Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Cognizant

EPAM

GSPR 2015- Automotive Ratings



Wipro

Tata Technologies

L&T TS

Luxoft

TCSKPIT Technologies

Tech

Mahindra

MindtreeBeyondSoft

Tata Elxsi

Sasken

HCL

QuEST GlobalCyient

Aricent

Xchanging

HARMAN Connected

Services

IGATE

Happiest Minds

Low

High

Scalability

R&D Practice

Maturity


Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Infosys

Hughes

Systique

Altran

Alten

Akka Technologies

Assystem

GlobalEdge



the product








with clients






service type








area


benefit to clients








GSPR 2015- Construction & Heavy Machinery Ratings


Low

High Nurture Zone Breakout Zone Execution Zone Leadership Zone

TCSCyient

L&T TS

Tata Technologies

HCLWipro

Scalability

R&D Practice

Maturity


Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

IGATE

Innominds

Infosys


the product








with clients






service type








area


benefit to clients








GSPR 2015- Transport

25



Cyient

L&T TS

TCS

IGATE

Tech Mahindra

QuEST Global

Tata Elxsi

Low

High

Scalability

R&D Practice

Maturity

Breadth

Innovation

Eco-system

Connect

Scale

, # o

f Su

b-V

ertica

ls s

ervi

ced, C

lient

Spre

ad

Ness


Altran

Alten

Akka

Tech

Assystem



the product








with clients






service type








area


benefit to clients



• R&D and PES as focus area





THANK YOU

26

global service provider ratings 2015 for · pdf filerelationships they have built with their...

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