2019

2019
 WHAT IS THE EVEREST GROUP ENGINEERING SERVICES TOP 50™?
Engineering services include all activities (across software, embedded, mechanical, and process engineering
functions) that support the design, development, testing, and management of products, both hardware and
software1. The Everest Group Engineering Services Top 50™ is a global list of the 50 largest third-party
providers, based on their Engineering Services (ES) revenues and year-on-year growth for CY 2018. This is the
inaugural edition of the list; we are launching it to help ES stakeholders understand the broad dynamics of
growth and success in the industry.

WHY THE EVEREST GROUP ENGINEERING SERVICES TOP 50™?

The global third-party ES industry is valued at more than US$40 billion. Enterprises have traditionally kept the
design-to-development process in-house, but the need for scalability and rapid innovation has compelled
them to consider third-party providers. As a result, ES providers have grown, through both more and larger
deals, expanding the industry breadth, solution breadth, and global footprint. They are developing domain
expertise and gaining scale through IP engagements and acquisitions. And, the market is becoming more
favorable to engineering services providers as more high-end engineering services opportunities are being
outsourced.
Engineering services providers are diverse. Some are pure-play engineering services providers, while others
offer engineering services as part of a broader portfolio (IT and/or business process services, consulting,
technology products, etc.). Some are focused on a particular domain or geography, while others are broad-
based. Some are listed, while others are privately held.
This list helps enterprises to identify the largest providers and their functional coverage. It also helps ES
service providers to compare themselves against others in the industry.

1 In the software context, engineering services include all Commercially Off The Shelf (COTS) and customer-facing software. System Integration (SI) and development,
maintenance, and testing of custom applications are not part of engineering services. 1
 HOW IS THE EVEREST GROUP ENGINEERING SERVICES TOP 50™ DETERMINED?

There are two distinct steps involved in determining the Top 50:
 Qualification – only the 50 largest service providers, based on their Calendar Year (CY) 2018 ES
revenue, qualify for the Engineering Services Top 50 assessment
 Rank determination – service providers are ranked on the basis of their CY 2018 ES revenue and year-
on-year growth. Growth has two sub-parameters: absolute growth (measured as change in ES revenue
in US$ million) and percentage growth (measured as percentage change in ES revenue)

CY 2018 REVENUE
(75%) + GROWTH
Actual + Percentage
= COMPOSITE SCORE
(100%)
growth* growth**
(12.5%) (12.5%)

We use multiple sources of information to conduct our analysis and determine the list rankings:
 Reported ES revenues and growth figures by listed companies
 Bottom-up revenue and growth build leveraging Everest Group’s proprietary ES databases tracked
and maintained at the functional levels
 Information shared/validated by service providers

*Year-on-year revenue change in US dollars

**Year-on-year percentage of revenue change 2
EVEREST GROUP ENGINEERING SERVICES TOP 50™ | 2019
Key engineering services offerings
Revenue
(CY 2018) Growth Engineering services by vertical
US$ rate Software Consumer Industrial Aerospace Semi- Medical Computing
Rank Service provider billion (YoY) Category Products Automotive Electronics & Energy & Defense Telecom conductor Devices Systems
1 Altran4 3.34 27.0% Pure-play        
2 Alten 2.60 14.4% Pure-play       
3 HCL Technologies 2.09 25.7% Broad-based         
4 AVL1 2.07 11.5% Pure-play   
5 AKKA Technologies 1.72 7.7% Pure-play    
6 Accenture1 1.42 16.0% Broad-based       
7 Tata Consultancy Services1 1.41 15.0% Broad-based         
8 Wipro1 1.40 9.1% Broad-based         
9 AF 1.56 1.2% Pure-play    
10 L&T Technology Services 0.69 28.7% Pure-play       
11 SII Group 0.75 23.9% Broad-based      
12 Tech Mahindra2 0.82 19.7% Broad-based         
13 Bertrandt Services 1.18 3.9% Pure-play    
14 IAV 1.04 8.5% Pure-play  
15 Harman Connected Services1 0.89 11.3% Pure-play        
16 Cognizant1 0.89 9.0% Broad-based    
17 GlobalLogic1 0.62 22.0% Pure-play       
18 Globant 0.52 26.3% Broad-based 
19 Ferchau1 0.84 10.6% Pure-play  
20 Belcan1 0.78 13.0% Pure-play   
21 Segula2 0.98 3.2% Pure-play   
22 IBM1 0.93 5.0% Broad-based   
23 Capgemini2, 4 0.83 8.5% Broad-based       
24 Infosys1 0.79 9.2% Broad-based        
25 EDAG 0.90 4.5% Pure-play 
26 Luxoft1,3 0.64 15.0% Broad-based    
27 Cyient 0.66 13.0% Pure-play        
28 QuEST Global1 0.56 14.0% Pure-play         
29 FEV1 0.68 8.0% Pure-play 
30 DXC Technology1, 3 0.59 11.0% Broad-based     
31 EPAM 0.35 22.0% Broad-based        
32 Assystem 0.52 12.0% Pure-play  
33 Arrk engineering 0.46 14.2% Pure-play 
34 Formel D 0.40 14.5% Pure-play 
35 Pactera1 0.45 12.0% Broad-based      
36 KPIT 0.25 22.0% Pure-play 
37 Mindtree2 0.28 20.0% Broad-based     
38 ESG1 0.37 12.0% Pure-play 
39 P31 0.43 8.0% Pure-play     
40 Safran Engineering Services1 0.41 7.9% Pure-play  
41 Tata Technologies 0.43 2.6% Pure-play   
42 APL1 0.25 8.7% Pure-play 
43 Sonata Software1 0.13 14.0% Broad-based 
44 Tata Elxsi 0.22 8.3% Pure-play       
45 Persistent Systems1 0.37 1.2% Broad-based  
46 Etteplan 0.27 5.1% Pure-play      
47 Combitech 0.26 4.7% Pure-play    
48 Hi-Q 0.21 4.0% Pure-play 
49 Cybage1 0.13 6.0% Broad-based 
50 Semcon 0.15 4.4% Pure-play   

1 Revenues and growth rates are based on public disclosures, information collected through our annual RFI process, our proprietary Transaction Intelligence (TI) database, and our ongoing
coverage/tracking of service provider activity. These figures have not been validated by the service provider
2 Revenues and growth rates are estimated but have been validated by the service provider
3 In January 2019, DXC Technology entered into a definitive agreement to acquire Luxoft; the acquisition was closed in June 2019
4 In June 2019, Capgemini announced its plan to acquire Altran; the acquisition is expected to close by the end of 2019 3
ES TOP 10 SERVICE PROVIDERS BY REVENUE AND GROWTH

Players by revenue Players by percentage growth

10
4
PURE PLAY VERSUS BROAD-BASED PROVIDERS
Most large engineering service providers are pure-play. Broad-based service providers that offer engineering
services as part of a broader services portfolio (IT and/or business process services, consulting, technology
products, etc.) view engineering services as an avenue to offset the low headroom for growth in IT and
business process services.

Broad based Pure play

38% 62%

Top 5 broad-based providers (by revenue) Top 5 pure play providers (by revenue)
HCL Technologies Accenture Altran Alten AVL

TCS Wipro IBM AKKA Technologies AF

SERVICE PROVIDERS’ SHARE BY REGION, 2017-2018

At 52%, Europe has the most engineering services providers listed in the Engineering Services Top 50™ list.
These service providers dominate the list given their higher revenues.

Europe (2018 share: 52%)

Top 3 providers by revenue, 2018
 Altran
 Alten
 AVL

North America (2018 share: 14%)

Top 3 providers by revenue, 2018
 IBM APAC (2018 share: 32%)
 Harman Connected Services Top 3 providers by revenue, 2018
 Cognizant  HCL Technologies
 Tata Consultancy Services
 Wipro

1 This share is based on the number of players in the Engineering Services Top 50TM list headquartered in respective geographies 5
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT,
business services, and sourcing. We are trusted advisors to senior
executives of leading enterprises, providers, and investors. Our firm
helps clients improve operational and financial performance through
a hands-on process that supports them in making well-informed
decisions that deliver high-impact results and achieve sustained value.
Our insight and guidance empower clients to improve organizational
efficiency, effectiveness, agility, and responsiveness. What sets Everest
Group apart is the integration of deep sourcing knowledge, problem-
solving skills and original research. Details and in-depth content are
available at www.everestgrp.com.

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