product engineering talent intelligence – us | june …...sources: zinnov zones 2018 - engineering...
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1Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
2Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
Table of Contents
Section I: Global Engineering R&D SpendingI
Section III: Product Engineering Skills Overview and SalariesIII
Section IV: Product Engineering Value Chain & Job RolesIV
Section II: US Employment Trends & Engineering Talent MetricsII
Section V: Global Engineering Services - Provider LandscapeV
Section VI: Player Profiles & Talent StrategiesVI
3Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
Summary
Global Engineering R&D Spending (US$bn)
1,200
1,700
2018 2023E
Top 3 Spending Segments - contribute 45% of the total Global Spend
Automobile Pharma Software & Internet
Big Tech Firms and Independent Software Vendors (ISVs) have spent US$117bn in
Engineering R&D in 2018
are the Top Engineering R&D spenders within the Software & Internet segment
US enterprises together accounted for 58% of the global Engineering R&D spend in 2018 - led by Alphabet, Apple, Amazon,
Cisco, and Facebook
Chinese firms like Baidu, Tencent, and Alibaba also have large Engineering R&D budgets. 6 out of the Top 10 spenders in
the APAC are Chinese enterprises
US Employment Trends & Engineering Talent Metrics
6,700 6,900
1,000
3,000
5,000
7,000
2015 2016
Number of People in Science & Engineering (S&E) Positions ('000s)
There are 6.9mn people in Science & Engineering profession in the US, representing 4.9% of the total workforce, to reach 8.1mn by 2026
57.6%
Computer Occupations
Others
~58% of the total S&E population in the US is working in the Software & IT
Services sector
Availability of skilled engineers to drive knowledge-driven manufacturing has become a concern
1.8% is the unemployment in the
US Engineering Services space
144,270
96,440
87,870
49,630
94,450
S&E Managers
Engineers
Computer Occupations
All Occupations -…
S&E Occupations -…
Salary Benchmark (US$) - Science & Engineering Professionals - 2016
The annual mean salary of the Computer Occupations Group and related professions stood at US$87,870. There are wide variations within this segment. Salaries range between ~US$53,000 for IT Support, helpdesk, network and remote support roles, and US$116,000 for Information Security, Architects, and Application Developer roles
Total Engineering employment in 2016 1,680,800
Total projected Engineering employment in 2026~1,819,700
Demand for EngineersApproximately 511,000 additional Engineers would be required in the course of the next 10 yearsAnnual demand of over 51,000 new engineers every year for the next 10 years to fill open positions=====================
Washington-Arlington-Alexandria 267,000
San Jose-Sunnyvale-Santa Clara, California 179,820
Seattle-Belle Vue-Everett, WA Met. Division 169,210
Boston-Cambridge-Newton, MA MECTA Div. 159,430
The West Coast accounts for at least 5 hubs - SF Bay Area, San Jose, Sunnyvale among others and the WA region - Seattle, Belle Vue (the numbers show talent headcount)Washington-Arlington-Alexandria metropolitan region has the highest concentration of engineering talent within the country
Soft
war
e Pr
oduc
t En
gine
erin
g Sk
ills/
Role
s in
Dem
and
JAVA, C#, Python, C++, Web Applications and API are the most sought after skills. There is a lot of demand for Agile/Scrum skills apart from Testing/Automation, and QA competencies
Software Dev. Consultant/EngineerSolution EngineerSoftware QA EngineerProduct ManagerPrincipal Design EngineerUI/UX DesignerR&D Software Design Engineer
The service provider landscape can be categorised as:1. Large (Rev. > US$500mn): EPAM, HCL, Infosys,
Altran, Wipro, Mindtree, Virtusa2. Mid-size (Rev. US$100mn-US$500mn):
Liquidhub, Persistent, Cybage, GlobalLogic3. Emerging (Rev. <US$100mn): Happiest Minds,
Mindteck,- KelltonTech
Providing services in 3 broad areas within Product Engineering
1. Software Engineering:
2. Embedded Systems Engineering:
3. Verification & Validation Engineering:
Global leaders such as Accenture, HCL, Infosys, TCS, Wipro and specialist service providers such as EPAM and Altran have large installed base of Engineering Services talent spread across multiple delivery locations in major cities. They are known to make large investments in talent acquisition and skilling efforts to bring up their performance to match the digital transformation needs of its clients. Major customers are Independent Software Vendors, Big Tech/Product firms, and companies in the Healthcare, Automotive, Pharma and Manufacturing. They typically have global Alliances, with Cloud Services Providers (Google Cloud, AWS and Azure, and Salesforce, Softlayer, Cloudera etc.) and large enterprise software vendors such as SAP, IBM, Oracle.
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Product Engineering Talent Intelligence – US | June 2019
Methodology
§ The current document aims to provide a view on the Software Product Engineering talent availability in the US
§ Standard desk research methodologies have been used to build the report. This document is built by bringing together available
information gleaned from open, public sources with no intention of copyright violation.
§ News, points of views, analyses, opinions and numbers from multiple public sources have been put together by analyzing and combining
insights and information.
§ We have analysed Product Engineering roles on Job Boards, LinkedIn, employment data aggregator platforms like Glassdoor and have
taken assistance from publicly available sources.
§ Due care has been exercised in crediting the original sources of the information and/or research from where data has been extracted. All
the data sources and information presented have been mentioned in the document.
§ Avance Consulting does not claim ownership nor the accuracy of the data presented in this document.
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Product Engineering Talent Intelligence – US | June 2019Sources: Zinnov Zones 2018 - Engineering R&D Services, *45% of the total spend by Global Top 1000 companies
Global Corporate Engineering R&D spend topped US$1.2 trillion in 2018 Automotive, Pharma, and Software & Internet are the top 3 spender segments globally; together they account for 45%* of the total Engineering services/R&D spend
By 2023 the total global spend is expected to increase from US$1.2 tn to US$1.7tn riding predominantly on increasing digital engineering spend
Z1000 R&D SpendTotal spending on Engineering and R&D by Top 1000 spenders globally (Zinnov 1000)
Corporate R&D Spend Total spending on Engineering and R&D by Global corporations beyond the Top 1000
ER&D Spend Traditional R&D spend and total engineering spend organization-wideSpending in Manufacturing Engineering + Project Engineering + MRO + Regulatory + Telecom NW Service & Layout
US$812bn
US$163bn
US$253bn
US$1,228bn
Aerospace & Defense Media & Entertainment
Top Sectors spending on Engineering R&D
Automotive Medical Devices
BFSI Mining & Metals
Biotechnology Pharmaceuticals
Consumer Electronics Retail
Chemicals & Materials Semiconductors
Peripherals & Storage Software & Internet
Energy & Utilities Telecommunications
FMCG Transportation
Healthcare Travel & Hospitality
Industrial Others
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Product Engineering Talent Intelligence – US | June 2019Sources: Zinnov Zones 2018 - Engineering R&D Services
R&D Spending Trends (1/3) - Sector view The software & internet segment spent US$117bn which makes it the 3rd largest spender category; has registered a growth between 18%-19% over 2017, highest among all industry groups
The software & internet segment has multiple single largest spenders among all industrygroups - led by Amazon, Alphabet and Microsoft
Segment: Innovators Segment: Leaders
Segment: Challengers Segment: Upcoming
Innovators
Leaders
Challengers
Upcoming
130 125117
0
40
80
120
Automotive Pharmaceutical Software & Internet
US$bn US$bn
6761
54
0
20
40
60
80
Consumer Elec. Semiconductor Telecom
US$bn
30 28 27 27
0
10
20
30
40
Storage Med. Dev. Industrial A&D
US$bn
26 2419
15
0
10
20
30
40
Biotech Chemicals E&U FMCG
▪ Automotive: Volkswagen (US$14.5bn), Daimler (US$9.6bn), Toyota Motors (US$9.5bn), Robert Bosch (US$8bn), Ford Motor (US$8bn)
▪ Pharma: Merck & Co. (US$10.2bn), Novartis (US$8.9bn), Pfizer (US$7.7bn), Bristol-Myers Squibb (US$6.4bn), GSK (US$6.1bn)
▪ Software & Internet: Amazon (US$22.6bn), Alphabet (US$16.6bn), Microsoft (US$13bn), Facebook (US$7.7bn), Oracle (US$6.2bn)
▪ Consumer Electronics: Apple (US$14.2bn), Samsung Electronics (US$14.1bn), Sony (US$4.1bn), Panasonic (US$4.1bn), Fuji Film (US$1.5bn)
▪ Semiconductor: Intel (US$13.1bn), Qualcomm (US$5.6bn), Broadcom (US$3.3bn), TSMC (US$2.5bn)
▪ Telecom & Networking: Huawei (US$13.5bn), Cisco Systems (US$6.3bn), Nokia (US$5.4bn), Ericsson (US$4.4bn), NTT (US$1.9bn)
▪ Peripherals & Storage: Dell (US$4.3bn), Canon (US$2.7bn)▪ Medical Devices: Medtronic (US$2.2bn), Bard (US$1bn),
Becton Dickinson (US$1bn), Boston Scientific (US$1bn) ▪ Industrial: ABB (US$1.3bn), Sumitomo Electric (US$1.1bn), TDK
(US$0.9bn)▪ Aerospace & Defense: Boeing (US$3.2bn), Airbus (US$3.1bn),
BAE Systems (US$2.1bn), Finmeccanica (US$1.7bn), Safran (US$1.5bn)
▪ Biotech: Celgene (US$5.9bn), Gilead Sciences (US$3.7bn), Amgen (US$3.5bn), Biogen (US$2.2bn), Monsanto (US$1.6bn)
▪ Chemicals: Dupont (US$2.1bn), BASF (US$2.1bn), 3M (US$1.8bn), Dow Chemical (US$1.6bn)
▪ Energy & Utilities: Petrochina (US$1.8bn), SNAM (US$1.1bn), ExxonMobil (US$1.1bn), Sinopec (US$0.9bn)
▪ FMCG: P&G (US$1.8bn), Nestle (US$1.7bn), Unilever (US$1bn), L'oreal (US$1bn)
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Product Engineering Talent Intelligence – US | June 2019Sources: Zinnov Zones 2018 - Engineering R&D Services, Zinnov Z1000 database
R&D Spending Trends (2/3): Digital Engineering Digital natives have been disrupting large R&D spenders across industry verticals - leading the R&D spenders to invest in digital engineering
By 2023, ~37% of global Engineering R&D (ER&D) spend will be on 'Digital' engineering,up from 15% in 2013
Dig
ital E
ngin
eerin
g Sp
end
(% o
f to
tal E
ngin
eerin
g R&
D S
pend
)
Time
2013 2018 2023E
1,058159(15%)
1,722
642(37%)1,228
293(24%)
37% of the total Engineering R&D spend
by 2023 driven by: • Technology Innovations• Business Model Innovations• Growth of Tech Giants• Vibrant global Digital Ecosystems
Overall Engineering R&D spend
Digital Engineering Spend
All spend numbers are in US$bn
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Product Engineering Talent Intelligence – US | June 2019Sources: Zinnov Zones 2018 - Engineering R&D Services, Zinnov Z1000 database
R&D Spending Trends (3/3): Top Digital Engineering spenders across geographiesUS enterprises are the largest spenders on Digital projects and initiatives mostly concentrated within Big Tech; Europe has very large spenders within the Automobile, Hi-tech Manufacturing and Pharma sectors
Chinese tech companies such as Baidu, Alibaba and Tencent are the among the top spendersin the APAC region - all of them large technology firms
▪ Digital Spend:
• North American enterprises account for 58% of the global Digital Engineering Spend driven by increased R&D spending by Software & Internet firms (Big Tech)
• Alphabet, Apple and Amazon are the top 3 spenders in North America
▪ Chinese Enterprises: • There are 6 Chinese enterprises
amongst the top 10 digital engineering spenders in the APAC region
• More than 33% of the Digital Engineering in the APAC is accounted for by Chinese companies
Global Trends
Upcoming Spenders6/10
58%
NA Non NA
58%*
US$169bn
Top Spenders:
• Alphabet• Apple• Amazon• Cisco• Facebook• IBM• Intel• Microsoft• Oracle• VMware
20%*
US$58bn
Top Spenders:
• AstraZeneca• BMW• Daimler AG• Ericsson• Nokia• Novartis• Bosch• Roche • SAP• Volkswagen
22%*
US$65bn
Top Spenders:
• Alibaba• Baidu• Ctrip• Honda• Huawei• Samsung• Tencent• Toyota• Zte• NTT
*% of global digital engineering spendingXXX: Chinese enterprises
Top Spenders by Regions (US$bn)
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Product Engineering Talent Intelligence – US | June 2019Sources: Bureau of Labor Statistics, CRS - The US Science & Engineering Workforce, Nov, 2017
Employment Trends (1/2) - USThe US Bureau of Labor Statistics has identified the unemployment rate at 3.6% in April 2019 which has been falling consistently since April '17; unemployment in engineering services stood at 1.8% in March '18
The 50-year low unemployment has resulted in the tightening of the labor market; the shortageof talent vis-a-vis demand is expected to continue in the near-term
US Science & Engineering WorkforceUS Employment
Update§ The United States added 263,000 non-farm payroll employment in the
month of April 2019 while the overall unemployment reduced by 0.2% to 3.6%. The non-farm payroll employment hovered around the average of 213,000 a month over the past 12 months
§ This is the lowest since December, 1969. The notable gains were witnessed in the Professional & Business Services, Construction, Healthcare, and Social Assistance
§ Professional & Business Services added 76,000 jobs in April 2019. Within the segment, gains were seen in Administrative & Support Services (+53,000) and in Computer Systems Design & Related Services (+14,000). Over the past 12 months, Professional & Business Services has added a total of 535,000 jobs
§ Manufacturing sector has been growing too, but less significantly. It added 4,000 jobs in April, 2019. In the past 12 months before February 2019, the industry had added 22,000 people on an average every month
§ While there has been a substantial rise of a knowledge-based economy in which research, information and services play a dominant role, the contribution of the Manufacturing sector to the US economy remains strong. The shift is in transformational manufacturing enabled by new digital technologies - Automation, Immersive Technologies and AI
Manufacturing Sector Update
With the increasing focus on transformation manufacturing, the question being asked pertains to the availability of talent needed to drive the growth. The need is for skilled engineers who form the core of knowledge-driven manufacturing
6,700 6,900
1,000
3,000
5,000
7,000
2015 2016
Number of People in Science & Engineering (S&E) Positions ('000s)
4.9% of the total US employment
57.6%
23.6%
8.4%
3.8%
4.1%
2.4%
Computer Occupations
Engineers
S&E Managers
Physical Scientists
Life Scientists
Mathematics
Between 2012-2016 US Science & Engineering employment increased by 747,040 growing at a CAGR of 2.9%, higher than the overall US employment growth of 1.9%
Science & Engineering Workforce Split - Segments
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Product Engineering Talent Intelligence – US | June 2019
136,150
143,870
145,740
Natural Sciences Managers
Architectural & Engineering Managers
Computer & Information Systems Managers
Science & Engineering Managers - Roles Vs. Mean Annual Salaries (US$)
Sources: Bureau of Labor Statistics, CRS - The US Science & Engineering Workforce, Nov, 2017, National Science Board, National Center for Science & Engineering Statistics (NCSES), https://www.bls.gov/oes/tables.htm.
Employment Trends (2/2) - US The average mean salaries within software engineering and professional services is among the highest in the United States, but is lower than the average mean of all Science & Engineering (S&E) salaries
The mean annual wage of people in science and engineering (S&E) professions was almost doublethe annual mean of all other groups - US$ 94,450 and US$ 49,630 respectively
While the annual mean salary of the Computer Occupations Group and related professions stood at US$87,870, there are wide variations within this segment. Salaries range between ~US$53,000 for IT Support, helpdesk, network and remote support roles, and US$116,000 for Information Security, Architects, and Application Developer roles
144,270
96,440
88,320
87,320
83,080
87,870
49,630
94,450
0 50,000 100,000 150,000
S&E Managers
Engineers
Mathematics Occupations
Physical Scientists
Life Scientists
Computer Occupations
All Occupations - Overall
S&E Occupations - Overall
Salary Benchmark (US$) - Science & Engineering Professionals - 2016
All Salaries are Annual Mean in US$
116,320
110,590
104,300
104,240
96,040
91,620
88,880
87,130
85,180
84,500
72,150
67,770
53,100
Computer & Information Research Scientists
Software Developers (Systems)
Software Developers (Applications)
Computer Network Architects
Information Security Analysts
Computer Systems Analysts
Computer Occupations (All others)
Database Admins
Computer Programmers
Network & Computer Systems Admins
Web Developers
Computer Network Support Specialists
Computer User Support Specialists
Computer Occupations - Roles Vs. Mean Annual Salaries (US$)
The above data is from 2016
The above data is from 2016
+47.45%
differential
Only selected S&E professions have been chosen for comparison - Computer Science & Engineering & other related engineering roles. Please click here to see the detailed taxonomy
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Product Engineering Talent Intelligence – US | June 2019Sources: Bureau of Labor Statistics, 2018 Science & Engineering indicators, National Science Board, National Centre for Science and Engineering Statistics (NCSES), the projections were released in Oct, 2017
Demand-side AnalysisBetween 2012 and 2016, the aggregate science & engineering (S&E) employment in the US increased by 747,000, rising from 6.2mn to 6.9mn, an increase of 2.9% CAGR
Half a million jobs were added in the Computer/software related professions (540,880) followed by Engineering occupations (105,320) between 2012 and 2016; CAGR of 3.7% and 1.7% respectively
US Engineering workforce size & projection (2016 - 2026)...
...amidst a tightening Engineering labor market (unemployment rates)......
Total Engineering
employment in 2016
1,680,800
Total projected Engineering
employment in 2026
~1,819,700
4.6%
2.4%4.1%
1.8%
0%
1%
2%
3%
4%
5%
All Occupations Engineeing Occupations
20172018
By 2026, employment in S&E professions is set to increase from 7.3mn to 8.1mn reflecting a much lower CAGR - 1.1%
...in addition to the new jobs created there will be open positions created due to exits from the labor force (retirement, turnover) and occupational
transfers
1,439,000* + 3,700,000* between 2016 and 2026
*estimates by Bureau of Labor Statistics, US
4,784.3
1,819.7
663.7
305.1
357.7
230.2
4,238.6
1,680.8
604.4
278.2
325.4
180.1
0 1,000 2,000 3,000 4,000 5,000
Computer & Software related
Engineers
S&E Managers
Physical Scientists
Life Scientists
Mathematical Occupations 20162026
all the numbers are in thousands '000
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Product Engineering Talent Intelligence – US | June 2019Sources: Bureau of Labor Statistics, 2018 Science & Engineering indicators, National Science Board, National Centre for Science and Engineering Statistics (NCSES)
Supply-side Analysis While the number of S&E Bachelor's degree holders has risen steadily, topping at 650,000 in 2015, the enrollment of US citizens and PRs has fallen in S&E degree programs - particularly graduate programs
The supply of engineering talent in the United States is expected to increase, however thecurrent scenario of exceeding demand vis-a-vis supply of talent is likely to sustain
Supply of graduate students
▪ The number of S&E Bachelor's Degrees has risen rapidly in the United States over the past 15 years
650,000 in 2015
The enrollment of international students in S&E was rising till 2016; however the share of US permanent residents and citizens has been falling gradually
S&E Bachelor's Degrees International graduate students
▪ Approximately 160,000 students graduate with Science & Engineering degrees in the US every year
Yearly graduate output
▪ The number of H1-B visa applications fell below 200,000 for the first time in 2017, after reaching its peak in 2016 - 236,000
Declining H1-B visa applications
Total new demand
for Engineers
~511,000High demand for Engineers......
Approximately 511,000 additional Engineers would be required in the course of the next 10 years to accommodate industry growth and also as adjustments for retiring/retrenched workforceThe US is expected to have an annual demand of over 51,000 new engineers every year for the next 10 years to fill open positions============================
Talent turnover/retirement a challenge...
q Demand for 61,000 engineers spurred by economic activity, business expansion, disruption
q 450,000 positions expected to result from turnover and retirements alone
Factors affecting talent landscape
1
2
Dependence on foreign-born talent
É Foreign-born professionals is an important component of US engineering workforce
É30% of all Science & Engineering professionals are foreign-born
3
36%26%
0%
10%
20%
30%
40%
% of International Students
2016 2008
18.4% of all engineering degrees are earned by international students
Bachelor's
Master's
Doctorate
100,000(Int. students 8.5%)
50,000(Int. students 47.4%)
10,500(Int. students 54.8%)
A Supply Impact FactorsB
236K
2016
199K
2017
190K
2018
(~20%)
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Product Engineering Talent Intelligence – US | June 2019Sources: Bureau of Labor Statistics, 2018 Science & Engineering indicators, National Science Board, National Centre for Science and Engineering Statistics (NCSES), National Science Foundation - Employment by Metropolitan Area
Science & Engineering Talent in the US - HubsOf the top 10 engineering talent destinations in the US, the West Coast accounts for at least 5 hubs - SF Bay Area, San Jose, Sunnyvale among others and the WA region - Seattle, Belle Vue notably
Science & Engineering talent makes up 4.8% of the US' total workforce; the Washington-Arlington-Alexandria metropolitan region has the highest concentration of engineering talent within the country
Total Science & Engineering Talent ~6.7mn1 - (May 2016)
Metropolitan Regions
Washington-Arlington-Alexandria 267,000
San Jose-Sunnyvale-Santa Clara, California 179,820
Seattle-Belle Vue-Everett, WA Metropolitan Division 169,210
Boston-Cambridge-Newton, MA MECTA Division 159,430
San Francisco-Redwood City-South San Francisco 117,500
Austin-Round Rock, TX 81,190
Raleigh, NC 52,690
Silver Spring-Frederick-Rockville, MD 58,830
Sources: 1National Science Foundation, this represents 4.8% of the total US labor force
4,890
937
563
355
- 1,000 2,000 3,000 4,000 5,000
Others
Manufacturing
Information
Professional, Scientific, Technical Services
S&E Talent - Employment by Industry ('000)
Note: The numbers beside each Engineering Talent Hub shown above is the total talent headcount
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Product Engineering Talent Intelligence – US | June 2019
Skills Overview - Skills in DemandSoftware R&D, design, quality assurance and testing skills are driving much of the demand within the software/product engineering talent space; embedded software and verification & validation (V&V) roles pay higher average salaries than others
Product Engineering Skills
Programming Languages/Skills
Sources: www.paysa.com, The Roles and Skills mentioned above and in the matrix are indicative in nature and have been derived through analyzing job roles and salaries
Top Product Engineering Skills in Demand
Rela
tive
Dem
and
for R
oles
Low
Total Contract Value (TCV)
Positioning of Roles - Demand Vs. Salary
Hig
hLo
w
Average Annual SalaryLow High
Note: The job titles and salaries have been sourced from Indeed.com, LinkedIn, Avance Consulting Internal Analysis. This analysis is specific to the US
Software Dev. Engineer
Sr. Software QA Engineer
Principal Design Engineer
Sr. ASIC Design Engineer
Sr. Consulting Engineer
Verification & Validation Engineer
Software Dev. Consultant
Solution Engineer
R&D Software Engineer Lead
Software QA Engineer
Embedded Software Consultant
Engineer: Product Software Integration
Embedded Systems Engineer
Embedded Software Developer
UI/UX Designer
R&D Software Design EngineerAgile/SDLC
Python
Testing/Test Automation
Software Design
Quality Assurance (QA)
Java/Script
C#
LINUX
XMLVisual Studio
Web Services
C++
Web Applications
/REST
Product Develop-ment
Validation
Req. Analysis
MATLAB
ISO 13485
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Product Engineering Talent Intelligence – US | June 2019
Overview of Roles (1/2) - Mapped to Salaries, Top Employers and LocationsSoftware Development skills form the core area from a recruiting standpoint; there is an uptick in demand for UI/UX and product management talent across levels - Bay Area, BelleVue, Seattle, NY, Houston and Austin are the top locations
Salary Benchmark
Sources: www.paysa.com, www.linkedin.com, Indeed.com, secondary sources, Avance Consulting internal analysis, the above data table is indicative in nature and not exhaustive
Role GroupAnnual Salary in the US (US$)
Top Companies Hiring Top Job Locations (average salaries) Sample Job Roles*
Average Range
Soft
war
e De
velo
pmen
t Rol
es
Software Development Engineer $178,409 $148,289 - $234,054 Zillow, Microsoft, International Rectifier, A10 Networks, Amazoncom
Mountain View (CA) - $201K, San Francisco (CA)- $197K, Redmond (WA) - $191K, Sunnyvale (CA) - $188K, BelleVue (WA) - $183K, Warren (MI)
Associate Software Engineer, Software Development Engineer, Software Engineer, Software QA Engineer (Java), Front/Back-end/fullstack Engineer, Software CO-OP Engineer, UI Design Software Engineer, Software Development Engineer in Test
Software Development Consultant $118,180 $104,364 - $143,924 Microsoft, HP, Oracle, Thomson Reuters, IBM
Seattle (WA) - $140K, BelleVue (WA), Dallas (TX), Atlanta (GA), O'Fallon (MO), DC (WA), Chicago (IL), New York City (NY)
Consultant Software Development Engineer, Application Development Practice Lead, Software Engineering Consultant, Application Developer, C# Developer Consultant, Sr. Principal Architect
Solution Engineer $117,798 $99,191 - $133,329 Apple, Akamai Technologies, Intel, OpenText Corp, Yammer, Attivio
Seattle (WA), Austin (TX), New York, Auburn Hills (MI), Phoenix (AZ), Orlando (FL)
Technical Solutions Engineer, Application Engineer, Sr. Solution Engineer, IAM Product Engineer, NSST Systems Engineer, Process Engineer, Solutions Engineer, Azure DevOps Engineer, Performance Support Engineer, Engineer III Systems
Senior Software QA Engineer $163,877 $136,623 - $214,220 Evernote, Netscape, PayPal, eBay, Cisco Systems
Seattle (WA), New York, Boulder (CO), San Diego (CA), Irvine, Santa Clara, San Jose (CA)
QA Engineer, Manual QA Engineer, Sr. Engineer (Software QA), Sr. QA Engineer, Software Quality Engineer, QA Automation Engineer, QA Validation Engineer, QA Engineer - BIOS
Software QA Engineer $136,250 $112,716 - $179,688 PayPal, Voltage Security, Eventbrite, eBay, NVIDIA, Amazon
Seattle (WA), Newton (MA), Sunnyvale (CA), San Jose (CA)
QA Engineer, Manual QA Engineer, Senior QA Engineer, Software Test Engineer, QA Validation Engineer
Product Manager $112,742 $90,389 - $154,045Microsoft, eBay, Amazon, EA, Ticketmaster, Twitter, Spotify, ADP, Facebook, Seagate Technology
New York, Pasadena (CA), Austin (TX), Menlo Park (CA), Cupertino (CA),
Software Product Manager, Product Development Program Manager, Software Solutions Product Manager, Software Engineering Manager, Senior Software Product Manager
Desi
gn R
oles
Principal Design Engineer $168,365 $147,326 - $207,530 Rambus, NVIDIA, Inphi, Exar Corp., Magnum Semiconductor, Autodesk
Houston (TX), Seattle (WA), Sr. Principal Engineer, Principal Engineer (Design), Principal Design Engineer, Principal Physical Design Engineer, Sr. Principal Engineer, Design Assurance Engineer
Senior ASIC Design Engineer $169,762 $149,589 - $207,343 Open Silicon, Apple, Cisco Systems, NVIDIA, Broadcom, HP, Google
Sunnyvale (CA), Austin (TX), Santa Clara (CA), Seattle (WA), San Jose (CA), Mountain View (CA)
ASIC CAD Engineer, Chip Level Physical Design (CAD Flow), ASIC Engineer (Custom Circuit Design), Design Verification Engineer, ASIC Design Engineer, ASIC Design Verification Engineer, Digital Design Engineer
UI/UX Designer $112,720 $94,721 - 146,099 America Online, Thomson Reuters, Microsoft, Google, eBay
Dallas (TX), Los Angeles (CA), New Orleans (CA), Boston (MA)
UI/UX Designer/Developer, UI/UX Designer, Experience Designer, Visual Designer
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Product Engineering Talent Intelligence – US | June 2019
Overview of Roles (2/2) - Mapped to Salaries, Top Employers and LocationsProduct majors like Google, Facebook, NVIDIA, Microsoft, Qualcomm and IBM have the largest concentration of engineering talent in the US followed by telecom hardware/network, automotive, and aerospace & defense (A&D) manufacturers
Sources: www.paysa.com, www.linkedin.com, Indeed.com, secondary sources, Avance Consulting internal analysis, the above data table is indicative in nature and not exhaustive
Role GroupAnnual Salary in the US (US$)
Top Companies Hiring Top Job Locations (average salaries) Sample Job Roles*
Average Range
R&D
Role
s
R&D Software Engineer $118,909 $100,824 - $152,474 Nokia, Philips, Keysight Technologies, HP, Medtronic, Formlabs
Sunnyvale (CA), Orange (OH), Vancouver (WA), Memphis (TN), Los Angeles (CA)
Software Developer - R&D, Software Development Engineer, R&D Engineer, R&D Embedded Software Engineer, Product Development Engineer, R&D Engineer 1, Software Developer 1 - MME/SGSN R&D, IoT Systems Engineer, Verification Tester
R&D Software Developer $99,801 $91,453 - $115,426 Aruba Networks, Nokia, Daimler, Microsoft
Redmond (WA), Sunnyvale (CA), Irving (TX) Software Developer R&D, Application Software Developer
R&D Software Design Engineer $121,640 $110,390 - $142,670 Daimler, Nokia, Safran, Microsoft, Philips, Google
Sunnyvale (CA), Irving (TX), Irvine (CA), Redmond (WA), San Diego Quality Assurance Engineer, Sr. Software Engineer in Test
R&D Software Engineer Lead $137,251 $126, 068 - $158,186 ADP, Here Technologies, GE, Ansys Mountain View (CA), Chicago (IL) Lead Application Developer, Sr. Principal Engineer,
Engineer - Product Software Int. $144,501 $117,592 - $ 194,271 Qualcomm, Google, Ford Motors San Diego (CA), Mountain View (CA) Consumer Device Engineer - Systems Integration & Debugging, ASIC DFT Implementation Manager, Advanced App Software Er.
Sr. Consulting Engineer $169,594 $139,960 - $224,470 The Ken Blanchard, Apple, Verispan, Juniper Networks, Mongo DB
San Francisco (CA), Seattle (WA) Solutions Engineer
Embe
dded
Sys
tem
s
Embedded Software Engineer $103,244 $87,640 - $132,207 Dolby Laboratories, Airware, Microsoft, Square, Cisco Systems, Bose
San Francisco ($125K), Seattle ($123K), Los Angeles ($121K), San Jose (117K), Atlanta ($116K)
Embedded Firmware Engineer, Firmware Engineer, Embedded Software Engineer, Powertrain Engineer, Embedded Software Design, Embedded Cybersecurity Engineer, Embedded R&D Engineer
Embedded Software Consultant $123,357 $107,439 - $152,974 Capgemini, IBM, Qualcomm, Apple Boston (MA), Cleveland (OH), Reston (VA), Santa Clara (CA)
Applications Consultant, Director of Embedded Systems, Principal Embedded Software Engineer, Agile & Embedded Software Specialist, Java Automation Engineer
Embedded Systems Engineer $105,381 $94,016 - $126,581 Elbit Systems, Johnson Controls, KPIT Technologies
San Diego (CA), Boston (MA), Menlo Park (CA), Santa Clara (CA), Palo Alto (CA)
RF Calibration, Systems Verification, Automation Engineers, Embedded Software Design Engineer, AR System Performance, & Power Optimization Engineer
Embedded Software Developer $109,947 $98,818 - $130,726 Terex Corp. Aptiv, Microsoft, Qualcomm
Redmond (WA), Newark (DE), NJ, Senior Embedded Software Engineering, Embedded Software Design, Software Development Engineer, Embedded C++ Dev.
Verif
icat
ion
& V
alid
atio
n Verification & Validation Engineer $110,461 $95,706 - $137,899 Pfizer, Caterpillar, Intel Chicago (IL), Santa Clara (CA) Sr. Validation Engineer, Validation Engineer
V&V Manager $99,928 $86,098-$125,635 Apple, Microchip Technology New York, Seattle (WA) Sr. Verification & Validation Engineer
Verification & Validation Engineer Lead $150,179 $122,016-$202,269 Pfizer Lake Forest (IL) Sr. Validation Specialist, Hardware Engineer Validation & Test
Salary Benchmark
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Product Engineering Talent Intelligence – US | June 2019Sources: Job Sites - Indeed.com, LinkedIn Jobs, Avance Consulting Internal Analysis, *the functions and the roles mentioned here are not exhaustive and indicative only
Mapping Value Chain & Job Roles - Software ProductsLarge product companies are heavily investing to acquire cutting-edge talent particularly in the domains of software product design & development in medical devices, AR/VR, connected machines and testing & certification roles
Software product engineering services pertain to the development, testing, deployment, and maintenance of software products
Product Ideation & Design
Product Development
Product Testing & Certification Product Deployment
Responsibility Areas
Product Management
Value Chain & Business Areas
• Idea generation• Requirement gathering
& analysis• Market research & user
surveys• Definition and
validation of technology choices
• UI/UX ideation• Prototype creation
• Coding & build management
• Bug fixing and maintenance
• Release Management• Product Engineering• Change Management
• Unit Testing• Functional Testing• Testing Automation• Quality Certifications• Multi-platform
certification• Devise-support
verification
• Product Localization• Document creation• Trial version and
installation guides• Data migration (from
legacy systems)• User testing
• Technical support and troubleshooting
• Product upgrades• Critical defect fixing• Customer Relationship
Management• End-of-life Support
Product Lifecycle Management (PLM)
Process Improvement
Engineering Value Chain - Software Products
Key Roles* (most hired)
§ Product Manager - Platform
§ Product Designer, JIRA§ Product Manager - Mob§ Software Engineer -
Product
§ Product Dev. Engineer§ Software Dev. Engineer§ Product Designer § Product Manager§ App. Engg. Manager
§ Software QA Analyst§ QA Tester§ Software Test Engineer§ QA Analyst - Manual Test§ IT Quality Strategy
§ Product Dev. Program Manager
§ Quality Leader - Strategy§ Senior Manager - IT
Product Delivery
§ Product Manager§ Manager - Business Soln.§ Product Manager§ Software Project Mgmt. § Digital Product Manager
Project Management
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Product Engineering Talent Intelligence – US | June 2019Sources: Job Sites - Indeed.com, LinkedIn Jobs, Avance Consulting Internal Analysis, *the functions and the roles mentioned here are not exhaustive and indicative only
Mapping Value Chain & Job Roles - Embedded SystemsService engagements can help companies facing challenges in terms of product design, domain expertise, resource headcount, reusable accelerators/frameworks and a faster product development journey
The demand for Embedded System Engineering talent is driven by the need to develop smartproducts based on IoT, M2M, Computer Vision, Telematics, Robotics and AR...
Value Chain & Business Areas
Ideation & Design Product Development Verification & Validation Product Maintenance
• Requirement gathering & analysis, Embedded software architecture, UI/UX ideation and CX design
• Firmware development, HMI development, Middleware, stacks and adoption layer, Release Mgmt
• Feature enhancements, Defect tracking & fixing, Maintenance releases, Lifecycle enhancements, OS porting, Real-time Operating System (RTOS)
• Embedded analytics, Remote device management, Technical publications, Power and footprint optimization, Customer field-support
Product Lifecycle Management (PLM)
Process Improvement
Engineering Value Chain - Embedded Systems Engineering
Embedded Software
Engineering
Hardware Engineering
Silicon Engineering
• Hardware architecture, Component layout, Sensor design, PCB layout, Hardware simulation
• Application-specific Integrated Circuit,, Field Programmable Gate Array and System on Chip (SoC) design, ASIC to FGPA and FGPA to ASIC conversion
• Design for Testability (DFT)
• Fabrication & PCB assembly, device drivers & control systems, Modem & sensors (IoT/M2M), Packaging
• Test Plan Design, Test Automation & Scripting, Testing based on Requirements & Safety Levels
• Board bring-up & Diagnostics, Isolation Checks, Design/Functional Verification Tests, Compliance
• EMI/EMC Testing, IP verification, Functional Verification, Protocol Monitors & Checkers
Key Roles* (most hired)
§ 0 § Embedded Systems Designer§ Embedded Systems Engineer§ R&D Engineer (Automotive
Embedded Systems)§ Hardware Design Engineer
§ Energy Design Engineering§ Firmware Engineer§ Hardware, Concept Engineering§ Pixel System Int Validation Engr. § EMC/RF Compliance Engineer
§ Software & Embedded Systems Validation Engineer
§ Hardware System Validation § Systems Validation Engineer§ Silicon Validation Engineer
§ Electronics Product Engineer§ Powertrain Engineer§ Field Service Engineer§ Additive Engineering § UAS Systems Engineer
Project Management
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Product Engineering Talent Intelligence – US | June 2019Sources: Avance Consulting internal analysis, HfS Blueprint Report - Software Product Engineering Services, August, 2018. The providers mentioned are only indicative and not exhaustive
Product Engineering Services - Service Provider Overview The market for outsourced product development/engineering services is highly fragmented with a only a handful of large pure-plays having global presence and a smaller number of specialized providers
ln recent years a large number of smaller providers with niche or vertical-specific capabilitieshave emerged to meet the growing demand for services...
Service Providers Tiers
Comprises of pure-play outsourced software development players and large diversified IT services providers. Players like Altran and Alten are investing in building capabilities in this segments. New technology areas such as DevOps, Agile, and other digital technologies are influencing different areas of software product engineering. ISVs, enterprise customers and internet companies are the important customer groups.
Tier 1: Large
Revenue>US$500mn
Tier 2: Mid Size
Revenue US$100mn - US$500mn
Tier 3: Emerging
Revenue<US$100mn
Similar profiles as Tier 1 players but with smaller footprint and revenue profile. However, these companies generally have a higher growth rate compared to the larger sized providers. Providers are increasingly engaging with their clients as strategic advisors and implementation partners. In some case, service providers are partnering with big consulting firms to fill the consulting gap.
This consists of small players which are concentrating on certain select verticals, geographies, and/or service linesMost are pure-play outsourced software development firms offering niche products/solutionsThere is a significant opportunity for large global players to play their roles in consolidating the market through mergers & acquisitions
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Product Engineering Talent Intelligence – US | June 2019Sources: Secondary Sources, Everest Group - PEAK Matrix Assessment, Software Product Engineering Services
Provider Landscape & Trends (1/3) - Software Product EngineeringSoftware vendors and enterprises are collaborating with service providers, particularly IT heritage service-providers to solve challenges in software development and to accelerate time-to-market and lower the costs
Demand drivers include digital technology themes, evolution of newer softwaredevelopment practices, and the need for higher customer-centricity
Market Growth
▪ Software products is among the leading engineering segments witnessing traction in
terms of global sourcing across Global In-house Centers (GICs, also called captive centers)
and service providers
▪ Global sourcing in this segment expecting annual growth of ~16-18% as both ISVs and
enterprises look to upgrade their software products
Trends
▪ SDx (Software Defined Everything): Blurred traditional boundaries in technology bringing new opportunities for service providers to collaborate with technology vendors
▪ Focus on building software products: Creating suitable opportunities products can be integrated with intelligent systems aided by IoT
▪ Physical + Digital and platformization: Moving from technology products to platforms is enabling enterprises to redefine their business models
Service Provider
Categories
▪ Global Leaders: Offer large-scale engagements, aided by strong project management capabilities, and widespread delivery footprint. E.g. HCL Technologies, Cognizant, Infosys, TCS, Tech Mahindra
▪ Major service providers: Strong capabilities to deliver services. Restrictive portfolios, not as expansive as those of the Global Leaders - in terms of product development value chain, proprietary assets or delivery capabilities. E.g. Altran, Aricent, EPAM
▪ Niche Players: Delivering services to specific niches. E.g. Happiest Minds, Sigma Software
Service Provider Landscape
1 Global Players
2 Major Providers
3 Niche Service Providers
Software-defined
Services differentiation
Intuitive software & interfaces
Lack of in-house talent CostsDemand Factors
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Product Engineering Talent Intelligence – US | June 2019Sources: Secondary Sources, Everest Group - PEAK Matrix Assessment, Embedded Systems Engineering Services
Provider Landscape & Trends (2/3) - Embedded Systems EngineeringThe global Embedded System Engineering services outsourcing market in 2017 was ~US$11.5-12bn and is pegged to grow at a CAGR of 18%-21% between 2018 and 2021
The global provider landscape for embedded systems is led by large IT Consulting and Systems Integration providers while specialty firms are active within specific niches of the value chain
Market Growth
▪ Global Embedded System Engineering Services outsourcing market is valued between US$11.5-12bn in 2017.
▪ Product Development with 34% and Verification & Validation with 39% are the biggest segments by value-chain areas. Embedded Software Development makes up for 63% by service function
▪ Poised to grow at a CAGR of 13%-14% in the period 2018-2021▪ Adoption of Embedded System engineering services is seen across sectors, however the largest
customers globally belong to the Automotive, Telecom, Industrial and Consumer Electronics sectors
Service Provider
Categories
▪ Global Leaders: Strong ability to deliver system-level engagements in this space using their breadth of technology capabilities, strong project management credentials, and sizable delivery footprint. E.g. Altran, HCL Technologies, LTI, and Wipro
▪ Major contenders: Demonstrable ability to challenge the Leaders, and win large deals on the back of their partnership ecosystem, flexibility and early-stage client engagement models - ALTEN, Capgemini, Cognizant, HARMAN, Infosys, QuEST Global, Tech Mahindra & TCS are some of the players
▪ Aspirants: Exhibit strong capabilities in delivering services, for specific niches within Embedded Systems Engineering. Eg. Innomind, Sasken
Service Provider Landscape
1 Global Players
2 Major Providers
3 Niche Service Providers
Time to Market
Adoption of new Technologies
Access to Talent
Cost reduction using Offshoring
Product InnovationDemand Factors
Trends
▪ Connected ecosystem: Driving superior user experience (UX) and enhanced product life for customers while enabling new revenue streams
▪ Embedded intelligence: Need for real-time data analysis is driving the adoption of Edge computing, and embedded AI (eAI)
▪ Embedded security: Product security has become an integral part of product design and development. Embedded systems are now a part of connected ecosystem
▪ Product optimization: Servicing emerging use-cases, focus on optimizing the footprint and power consumption of products and systems
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Product Engineering Talent Intelligence – US | June 2019Sources: Secondary Sources, Everest Group - PEAK Matrix Assessment, Verification & Validation Engineering Services, August 2018
Provider Landscape & Trends (3/3) - Verification & Validation EngineeringAs products become more inter-connected, instrumented and intelligent, the market expectations are likely to shift from the product (features and functionalities) towards ensuring seamless customer experience (CX)
Standardized, one-size-fits-all product development strategy is being replaced by an'on-demand and personalized' approach leveraging various delivery models
Market Growth
▪ Value-chain transformation: Customers are looking for strategic benefits by transforming their entire product engineering value chain rather than just focus on cost. Product companies are adopting next-gen digital methodologies in order to ramp up their V&V activities; likely to move towards DevOpsAgile model
▪ Buyer expectations: Buyer organizations expect service providers to help create leverage in terms of higher profitability, better efficiency and faster time-to-market
▪ The V&V outsourcing services market is expected to grow at a CAGR of 10%-13% in the coming years
Service Provider
Categories
▪ Global Leaders: Differentiated by strong global delivery models, next-gen capabilities, and good depth and breadth of solutions/services portfolio that has helped them become strategic transformation partners to their clients
▪ Major contenders: Lag behind the Leaders in terms of breadth of solutions portfolio, scope and domain expertise. Few of them have a mature solutions portfolio and industry-wide expertise while others have limited offerings, and focused expertise in selective technologies and industry domains
▪ Aspirants: Have limited coverage both in terms of delivery footprint and domain expertise, their investments are mostly focused on a few select areas and particular V&V segments of the value chain
Service Provider Landscape
1 Global Players
2 Major Providers
3 Niche Service Providers
Connected devices
Customer Experience (CX)
Faster concept to productization
Customer-centric products
Higher personalizationDemand Factors
Service Provider Trends
▪ Effective positioning: Providers are building effective positioning in the market by investing in assets (solutions, frameworks, labs), talent upskilling and delivery capabilities
▪ Investments to build capacities: The V&V market saw increased investments from the majority of service providers in Centers of Excellence (CoEs), Innovation Centers, to enhance capabilities in automation, platform-based offerings, connected ecosystems, and next-generation themes
▪ Service providers are collaborating with key technology vendors and enterprises to build additional capabilities
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Product Engineering Talent Intelligence – US | June 2019
AccentureA leading global services provider with strong investment commitment and focus on consulting, implementation and support for software product engineering services
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018
§ Consulting-led delivery: Accenture is leveraging its advisory and strategy consulting services across the software engineering value chain with a specialized focus on connected platform engineering. It enables clients to shift from product mentality to a platform mentality by leveraging APIs and ecosystem strategies for end-to-end future-ready platforms. Has worked with a number of clients to define platform strategy, design, implementation, that includes device engineering, platform enablement, and product management
§ Investments in innovation and lab infrastructure: Has invested in labs (applied R&D, incubating and prototyping new concepts), studios (designing & creating digital services), and innovation centers (demonstrating & scaling industry solutions). It has a built a new asset - 'Platform-in-a-Box', a preconfigured solution for deploying a platform for its clients
§ Focus on partnerships: Accenture is partnering with leading internet and technology ISVs and start-ups across the globe in the areas of cloud platforms, development languages, and software tools. Expanding its solutions portfolio across the digital thread, intelligent product operations, agile, and engineering optimization
§ Strong Europe & APAC focus: Has a significant revenue percentage from Europe and APAC and is one of few service providers with a high delivery presence in onshore and nearshore locations
§ Quality of customers: Has a large number of clients in the top 100 ISVs, and also in the top 25 internet companies list, which demonstrates the quality and size of its customers
Strengths
§ Investing in talent enhancement capabilities: § 800 new positions in Canada: The new Toronto Hub will be
Accenture's 10th such facility in North America. Accenture expects to help solve client's problems through co-ideating, prototyping, and scaling innovative products and services around AI, Blockchain
§ Efforts around training and apprenticeships: Opened an Innovation Center in Seattle , as a part of its expanding apprenticeship program in the US. It provides an immersive environment to help train what Accenture calls 'under represented groups' in digital skills. It facilitates a design-thinking approach and helps turn concepts in to technology prototypes
§ Acquisition-led headcount growth: Accenture is betting big in Manufacturing, particularly in the Automotive sector - its latest acquisition of Zielpuls in Germany is a step towards strengthening its capabilities in the IT Architecture domain. The acquisition will be a part of Accenture Industry X.0 which will enable the company expand its presence in the areas of Automated Car Parking Systems and other technology-driven smart products for the medical devices industry. Accenture adds 190 professionals through this acquisition
Talent Strategies
Acquisitions/Partnerships
Acquisitions• S3 TV (2015)• Mortgage Cadence (2013)
Partnerships• Salesforce, Microsoft, Adobe,
AWS, Google, Atlassian, AppDynamics, Docker, Tableau, IBM Rational
Key Clients
Top 10 ISVs - 6Top 100 ISVs - 25Top 25 Internet Companies - 9Clients include:
• American cloud computing comp.• EU-based Telco service provider • Leading global Enterprise ISV• Leading internet software comp• US-based consortium of cable comp
Global Delivery Centers
Global Headcount: >5,000 (2018)
Locations: 25+ major global service delivery locations including:
North America - US & CanadaEurope - Poland, IrelandAPAC - India
Proprietary Platforms/Tools
Total patents filed/granted: >250Key IPs:• myWizard: Enterprise Automation
Platform • Touchless Testing Platform:
Automated & continuous testing through AI/ML
• Omni-channel testing platform: Testing of digital applications
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Strong consulting & advisory
Large partner ecosystem
Continuous investments in building capabilities and tools, frameworks
Adding logos through acquisitions
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Product Engineering Talent Intelligence – US | June 2019
CognizantIs generally perceived as a digital transformation partner by clients; positions itself as a premium service provider leveraging its consulting capabilities, deep client relationships, and a wide partnership ecosystem
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Digital transformation partner: Is a preferred digital transformation partner for its clients. The company is leveraging its advisory and consulting-led delivery approach along with strong digital engineering expertise. It has developed a number of consulting and implementation frameworks, including tools and accelerators in the areas of digital experience management, automation, and cloud
§ Investments in tools and accelerators: Investing in technology-specific labs and in-house solutions development facilities such as 'Cognizant Digital Collaboratory' to re-imagine businesses using new digital technologies. Its global network of digital innovation spaces is spread across cities such as London, New York, Amsterdam and Melbourne. Client references have also mentioned Cognizant's innovation willingness that often reflects in its engagements
§ Focus on business outcomes: Delivers business outcomes through PoDs consisting of 4-6 team members. PoDs are high-performing Agile teams that implement extreme programming practices and assure high-quality deliverable and speed-to-market to the clients
§ Strong customer relationships: Cognizant has long-term relationships with most of its premier clients in the software product engineering space. Establishing long-term relationships is crucial for the company to ensure recurring revenue opportunities
§ Expansive partnership ecosystem: Is aided by a strong partnership ecosystem for its offerings. Leverages its partnerships to co-develop solutions and joint go-to-market approach within this space
Strengths
§ Focus on all-round workplace development: Strong focus on workforce development within its software product engineering practice. It has undertaken large plans to upskill its workforce through its role-based Cognizant Career Architecture (CAA) program and digital engineering program
§ Acqui-hires: Recently acquired 2,850 digital engineers triggered by digital transformation demand. Digital engineering company Softvision was acquired by Cognizant which provides a strong nearshore presence to the latter. With the acquisition, Cognizant adds capabilities in Financial Services, Retail, Media, Technology and Telecom sectors
§ Reskilling programs - Career Tracks: It has launched specialized career tracks on product engineering under the CAA to nurture full-stack engineers and product engineering managers among other roles
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Hedera (2018)• Brilliant Service (2017)• Idea Couture (2016)• KIS Information Services (2016)
Partnerships• Amazon, Microsoft, Pivotal Cloud Foundry,
IBM, Oracle, MapR, Apigee, SAS, Google, Appian, Adobe, Informatica, Teradata
Key Clients
Top 10 ISVs - 4Top 100 ISVs - 9Top 25 Internet Companies - 4Clients include:
• American Healthcare ISV• German Enterprise ISV• Leading Financial/Tax ISV• Online fashion retailer• US-based Information ISV
Global Delivery Centers
Global Headcount: NA
Locations: More than 25 global service delivery centers including:
North America - US/CanadaEurope - France, Germany, UK, IrelandAPAC - India, Philippines, Singapore
Proprietary Platforms/Tools
Total patents (filed+granted): 100-250Key IPs:• Cog9 VSM: Automated analyzer to
determine cloud readiness for apps• HiveCenter: Integrated automation
ecosystem• COSMOS: Development platform for
microservices design & implementation• Big Decisions: Analytics infrastructure • OneDevOps: Accelerating DevOps journey
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Consulting & advisory leverageInnovative talent management Partnerships/AlliancesStrong client references Investments in tools/frameworks
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Product Engineering Talent Intelligence – US | June 2019
HCLIs a software engineering product leader with a strong innovation-led solutions portfolio, partner ecosystem, and a large client portfolio
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Strong solutions portfolio: HCL has developed organically and has also acquired capabilities. It has a strong portfolio of products, platform tools, and solution frameworks that accelerate customers' entire offering development lifecycle. The solutions also cover a broad portfolio of offerings across the technology stack and multiple industry verticals
§ Patents and innovation credentials: Has solid innovation credentials in the software product engineering space. It has one of the highest number of patents among the comparable service providers. It has invested upwards of US$25mn in over 100 engineering labs focused on software product engineering and is aligned to monetize innovation in the area of analytics, artificial intelligence, IoT and Mobility
§ Transformation partnership initiatives: Has adopted business model-led transformation partnerships through investments in products and platforms. Over the past 18 months, HCL has invested over US$1bn in multiple co-development and IP partnerships to drive products and platform-led innovation to modernize the roadmap and drive revenue uplift
§ Account Management: Has strong account management capabilities in this space. Its average FTE/Client ratio is on the higher side relative to its competition, which reflects positively on the depth and breadth of its engagements. Reference clients have also mentioned HCL's flexible and responsive account management capabilities
§ Client quality mix: Has one of the highest number of clients among the top 100 ISVs, and the top 25 internet companies, which demonstrates its client quality
Strengths
§ New product suite to impact hiring: On the back of large investments in IPs partnerships (such as with IBM for Automation and DevOps solutions), HCL is following a three-pronged strategy in the areas of both IT services as well as Engineering services - these have been launched as stand-alone offerings, strategic IP-led partnerships and acquisitions. HCL's attempt to gain presence in the entire life-cycle - from development to sale would require capacity building and hiring the right talent for new and emerging technologies
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Actian Corporation (2018)• Geometric (2016)• Point to Point (2016)• Trygstad (2015)
Partnerships• IBM, Oracle, Salesforce, SAP, Adobe, Infor,
Amazon, Microsoft, Symantec, Dynatrace, Dell EMC/VMWare
Key Clients
Top 10 ISVs - 8Top 100 ISVs - 41Top 25 Internet Companies - 8Clients (170+) include:
• American Technology company• Global Tech. conglomerate• Leading Cybersecurity software & services
company• Leading networking hardware and telco
equipment company
Global Delivery Centers
Global Headcount: >5,000Locations: 20+ global service delivery centers including: North America - US, Canada, MexicoEurope - Finland, Ireland, Italy, Netherlands, Norway, Poland, UKAPAC - India, Philippines, Singapore, China, Malaysia, Australia
Proprietary Platforms/Tools
Total patents filed/granted: >250Key IPs:• IPs acquired from IBM• ISCM: Supply Chain Solution• GeometricDFX: Automated tool to predict
manufacturing of models• PANGEA Analytics Framework• Intelligent Sustenance Engineering (ISE):
Engineering analytics solution• Intelligent TechSupport (ITS): Analytics
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Innovative solutions portfolio Strong account management and client relationshipsIP and partnershipsStrong client references
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Product Engineering Talent Intelligence – US | June 2019
InfosysAn end-to-end software engineering service provider with strong partnership ecosystem and substantial onshore presence
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ End-to-end service portfolio: Has strong service offerings to support complete software product engineering with end-to-end capabilities for new product development, sustenance, testing, and product management. It has invested in developing in-house DevOps and Agile tools and frameworks. Has built DevOps platform for customized and adaptable integrated tool chains for various technology stacks
§ Nonlinear commercial model: Growth strategy includes transaction and IP-based pricing model for its engagements. E.g. it is working with a leading North American ISV in revenue share model for the development of unified communications product family. It is engaged in outcome-based model for integration and validation of product stack for a US-based technology ISV
§ Partnership ecosystem: Partnering with leading software companies like Microsoft, Oracle, CA and IBM and developing joint solutions in the areas of cloud, DevOps, AI, and Analytics. It is also investing in start-ups through the Infosys Innovation Fund through direct investment in emerging areas such as Data Science, Machine Learning, Neural Networks etc.
§ Expanding global presence: Has a strong presence in APAC and onshore locations. The client proximity has helped Infosys realize a significant percentage of its total revenue from APAC and North American clients. Infosys is also expanding its engineering services footprint in the Bay Area and Israel and other nearshore locations such as Mexico and Canada
§ Ability to deliver business outcomes: Has demonstrated with case studies how it has delivered business outcomes for its clients. These are related to overall R&D cost reduction, faster time to market, performance improvement and better experience management
Strengths
§ Re-skilling efforts: Focusing on talent reskilling at scale partnering with the likes of Udacity on emerging technologies
§ Continued onboarding of talent in the US: Inaugurated two centres in quick succession one in Hartford, CT and another in Rhode Island§ The Hartford Hub houses talent with expertise in InsurTech and
HealthTech and Manufacturing. Infosys is banking on providing services to its local clients and to increase its outreach. It is expected to house 1,000 people with expertise in Blockchain, AR/VR, and Cognitive capabilities such as Design Thinking
§ Infosys has already onboarded 100 employees at its newly launched technology innovation center at Rhode Island (Providence) and plans to increase it to 500 in the next 3 year. The focus here is on strategic design skills
§ Expanding its Digital agenda on campuses: Also building a Digital Lab in association with the Community College of Rhode Island that will teach students new Digital Skills. This will help Infosys create a pipeline of talent. The 'Digital Economy Aspirations Lab' will be located within Infosys' Providence Center
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Wong Doody (2018)• Brilliant Basics (2017)• Lodestone (2012)
Partnerships• Amazon, CA, Microsoft, IBM, SAP,
Citrix, PTC
Key Clients
Top 10 ISVs - 4Top 100 ISVs - 20Top 25 Internet Companies - 2Clients (125+) include:
• American retail company• A large European Bank• Global Industrial company• US-based technology company
Global Delivery Centers
Global Headcount: >5,000Locations: 15+ major locations: North America - US, Canada, MexicoEurope - Germany, Ireland, Switzerland, UKAPAC - India, Singapore, China, Malaysia, Australia, Hong Kong, Japan
Proprietary Platforms/Tools
Total patents filed/granted: 25-100Key IPs:• DevOPs Platform: Solution to accelerate
implementation and adoption of DevOps• Cloud Ecosystem Integrator Hub: To build
and manage a Hybrid cloud environment• DataGrid: Data-as-a-service platform• Device Integrator: Device integration
framework for enabling communication in retail
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
End-to-end service portfolioLarge partnership ecosystem Nonlinear pricing Global delivery presenceIndustry thought-leadership
33Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
TCSA strong software product engineering services provider with a compelling vision, innovation mindset, and demonstrable delivery reputation, it is one of the leaders with a global presence
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Vision: TCS aspires to be the 'Partner of Choice' for its customers for all existing and new product initiatives by focusing on its offerings across the full lifecycle. It is leveraging its Business 4.0 framework, along with digital technology advancements and location-independent agile delivery capabilities to help transform customers' products and platforms. It is also utilizing technical capabilities in AI, Analytics, Agile, automation, and cloud to grow this business
§ Patents & innovation credentials: Has strong innovation credentials with the highest number of patents among comparable service providers. Has a rigorous patent management and IP development process under its Components Engineering Group
§ Quality account management: Gets high marks from the clients for its Account Management capabilities - proactiveness and structured approach over the engagement period and beyond. It also has one of the highest FTE/Client ratios, which shows the depth of its client engagements
§ Delivery reputation: Well known as a service provider that can deliver on its promises. Clients have a high level of satisfaction for its performance on time and within budget
§ Geographic delivery mix: Strong geographic spread with 25+ delivery centers covering all major regions, including North America, Europe and Asia Pacific. In addition, it has one of the highest percentages of resources in onshore and nearshore locations
Strengths
§ Reskilling & training: Has trained 200,000 people on digital technologies and agile methodologies to cater to its clients' requirements
§ Expansion of operations in the US: It has added 200 employees to its facilities in Plano, TX as a part of a deal with Transmerica. It has invested US$3bn in the US since 2015 and is among the top 2 IT services job creators in the country. It has also added 120+ people to its new facility at Denver, CO, taking its total headcount in CO to more than 600. New employees include Computer Science specialists with digital skills in areas such as Agile, Scrum, and Rapid Prototyping
§ Chosen top employer in North America: TCS has been chosen as the #1 Top Employer in NA for its exceptional workforce practices by the Top Employers Institute. It has been ranked high on advanced practices on talent strategy, workforce planning, recruitment and onboarding, skills development, leadership grooming, and employee engagement
§ STEM Training Programs: Engages more than 2mn Americans through its extensive nationwide STEM education programs, academic partnerships, and endowments to schools such as Carnegie Mellon, Cornell Tech and MIT
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Computational Research
Laboratories (2012)• Mitsubishi (JV, 2012)
Partnerships• Symantec, GE, NetApp, HP, EMC, Xerox,
Microsoft, VMWare, Nutanix, Cisco, Citrix, SAP, CA, Informatica, Intel, RedHat, Juniper, AWS, Cloudera, Splunk
Key Clients
Top 10 ISVs - 8Top 100 ISVs - 24Top 25 Internet Companies - N/AClients (100+) include:
• European Telco equipment vendor• European Wireless equipment vendor• Hybrid cloud data services and storage co.• Leading software product development co.• North American enterprise equipment co. • North American semiconductor mfg.
Global Delivery Centers
Global Headcount: >5,000Locations: 25+ major locations: North America - US, CanadaEurope - Finland, Germany, Hungary, Ireland, UKAPAC - India, China, Japan
Proprietary Platforms/Tools
Total patents filed/granted: >250Key IPs:• TCS Mastercraft: Suite of intelligent
automation products for application development, testing & delivery
• Ignio: Cognitive automation solution• Engineering environment-as-a-service • Microservices development & deployment
platform• AI-based radio network optimization
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Account Management and strong delivery capabilitiesWide geographic presence and ramping upStrong patent portfolio
34Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
AltranThe United States is one of major areas of expansion for Altran; it has established itself as a leading product engineering services provider through targeted acquisitions of Lohika, GlobalEdge and Synapse
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Strong solution offerings: Aspires to be a key player in the software product engineering space. It is building competencies in complete ownership of product roadmaps (including end-of-life products), development, test and deployment support. Also strongly monitors business outcomes of the engagements for maximum value realization
§ Outcome-based pricing model: Revenue from outcome-based pricing models is on the higher side for Altran. It is working with a number of large enterprise ISVs in shared revenues and IP-based pricing models for software product transformation projects. Outcome-based pricing is one of the strategic growth areas for Altran. Also leveraging innovative engagement models in particular for legacy products
§ Strengthening offering through M&A: Focused on strategic M&A to build its capabilities. The 2017 acquisition of Aricent, a provider of design and engineering services has enabled Altran to expand its footprint in the software and internet verticals , a good portfolio of assets and a stronger footing in the North American market. Through the acquisition of Lohika, Altran was able to enter newer markets in Eastern Europe and also gets an opportunity to serve customers in the mid-market (revenues upto US$100mn)
§ Client relationships management: Has prioritized an engagement model that includes client proximity and project management with high-end offshore capabilities. This has enabled Altran to deepen customer relationships and increase its delivery presence in new geographical hubs
Strengths
§ Acquisitions-led headcount & business growth in the US:
‒ The quick successive acquisitions of Aricent, Lohika, Synapse, and GlobalEdge has put North America at the core of Altran's North America operations - the region contributes more than 40% of the group revenues
‒ Focusing on the US west coast; Synapse, headquartered in Seattle (headcount of 150 specialists, acquired by Cambridge Consultants, Altran's independent entity in the UK and the recent acquisition of of San Francisco based Aricent is also an attempt to expand its presence in the region. This has boosted its relationship with the local companies, fast-scaling start-ups and has added additional skillsets to its portfolio
§ People growth in other geographies through a mix of acquisitions and focused recruitment campaigns:
‒ Focus on the France market: Reported a 6.1% organic revenue growth in France in FY 2018 backed by focused recruitment campaign and growth across industry verticals
‒ Ramping up operations in Malaysia by filling 250 engineer positions (mask design, pre-silicon validation, structural design and software development) at its new VLSI engineering center. Augmented its pool of talent in embedded hardware and software solutions through the acquisition of NEXT, an Italy-based embedded software company active in the aerospace & defence and rail industries. Similarly the acquisition of Pricol Technologies added 520 people to Altran's rolls whereas the integration of the Cheltenham-based IRM (a cybersecurity services provider) brings in 82 professionals
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Aricent (2018) • Lohika (2016)
Partnerships• HP, Microsoft, Amazon, Cloudera,
Hortonworks, CA, Flutura and CloudHat
Key Clients
Top 10 ISVs - 6Top 100 ISVs - 26Top 25 Internet Companies - 5Clients (250+) include:
• European retail company• Global technology company• Leading internet organization• US-based banking company
Global Delivery Centers
Global Headcount: <2,000Locations: 5+ major delivery center locations: Europe - France, Ukraine, Romania APAC - India
Proprietary Platforms/Tools
Total patents filed/granted: NAKey IPs:• Self Optimizing Carrier Cloud (SOC2):
Closed-loop automation and feedback mechanism
• Lifecycle Service Optimization: Unified orchestration framework
• Test Analytics Framework: Product testing and certification related framework
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Wide solutions portfolioOutcome-based pricingCustomer relationship - high proportion of mid-market customers
35Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
Tech MahindraA software product engineering services provider with wide geographical spread of its business, partnerships with the start-up ecosystem, and a good portfolio of transformational engagements
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ End-to-end product engineering expertise: Well-rounded product development experience, running projects with scales Agile and Agile and with DevOps and Test Case Automation. Also has strong presence in digital technologies such as AI/ML, VR/AR, IoT and Blockchain
§ IP Deals: Secures significant revenue from transformation projects with clients. It has secured large transformational deals with a multi-national media and entertainment company and an American technology company encompassing the areas of product development, future roadmap, and service delivery support
§ Balanced portfolio revenue mix: Tech Mahindra has a balanced geographic mix of clients and is particularly strong in APAC and other regions compared to peers. The APAC market is expected to provide growth opportunities to the company going forward. Tech Mahindra is well-positioned to leverage this trend to its advantage
§ Pricing Mix: Has one of the highest percentages of revenue from IP and gainshare, risk and reward pricing models within the heritage IT service providers group
§ Partnership with start-ups: Tech Mahindra is collaborating with 20-30 start-ups under its program known as TechMNxt. The start-ups primarily work in the areas of networking, communications technologies, and virtual reality. The company already has 30 start-ups working in its network and has plans to expand its operations through additional investments
Strengths
§ Investing in skill development: The company's number of annual training hours is on the lower side compared to its peers. It has plans to augment upskilling initiatives to prepare its workforce for digital technologies
Talent Strategies
Acquisitions/Partnerships
Acquisitions• BIO Agency (2016)• Fixstream Networks (2014)
Partnerships• VMWare, Amazon, Microsoft,
Google, Softlayer, Fixstream, IBM
Key Clients
Top 10 ISVs - 7Top 100 ISVs - 28Top 25 Internet Companies - 3Clients (30+) include:
• American technology company• Global enterprise IT major• Global ISV• Global storage and data management co. • Leading Data Management company
Global Delivery Centers
Global Headcount: 2,000-5,000Locations: 5+ major delivery center locations: North America - USEurope - IsraelAPAC - India
Proprietary Platforms/Tools
Total patents filed/granted: 25-100Key IPs:• Media Codec Optimization: Optimization of
the storage space requirement for voice & coding deployments
• Frameworks for smart drives: Object storage and built accelerator for product validation and automation
• Others: Internally developed frameworks across automation, DevOps, Analytics
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Expertise across value chain Transformational IP engagementsGeographical spread of revenue Innovative pricing and commercial models
36Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
WiproA leading service provider with strong service offerings, a portfolio of high-value client accounts, and a corporate venture arm to collaborate with start-up companies
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Strong service offerings: Wipro has 20+ years of experience of delivering software product engineering services. It has deep domain expertise in the areas of system software, cloud, machine learning, mobility, UI/UX and other areas of digitization. Wipro is also strong in DevOps and agile methodologies. It has built DevOps platform for rapid implementation and is working with 100+ clients in agile projects
§ Investments in labs, solutions and innovation: Has one of the highest number of patents among the service providers. It has invested in multiple labs and centers of excellence (including domain specific, automation, and artificial intelligence) for building POCs, solutions and frameworks. It is also leveraging its own crowdsourcing platform (TopCoder) to implement innovative design and development challenges in niche technologies
§ High-value client accounts: Wipro has one of the highest number of clients with TCV averaging upwards of US$5mn. It also has a good portfolio of clients that have long-term (5 years) contracts
§ Quality of customers: Has one of the highest number of clients in top 100 ISV, top 10 ISVs and top 25 Internet companies list, indicating a strong mix of quality customers
§ Geographic delivery mix: Has a strong presence in onshore locations including multiple delivery centers across Europe. Derives a significant portion of its revenue from the APAC region
§ Partnership with start-up ecosystem: Its strategic investment arm, Wipro Ventures (US$100mn fund) invests in promising start-ups. Some of the companies it has invested in are Avaamo, Imanis Data, and Vicarious
Strengths
§ Resource quality augmentation: Software product engineering training hours per FTE is lower than the industry average. To improve its training metrics, It has built an internal platform to connect its employees to communities and enterprise blogs for continuous learning
§ Investing in new R&D and innovation centers: Opened a new automotive engineering center in Detroit, which helps in leveraging local talent for design, development and validation services. The centre acts as a hub where manufacturers, technology partners auto industry forums and analysts come together to develop and showcase solutions that leverage artificial intelligence, analytics, and IoT
Talent Strategies
Acquisitions/Partnerships
Acquisitions• NA
Partnerships• PTC, Amazon, Microsoft, Google,
Oracle, Siemens, Autodesk, IBM and DiManEx
Key Clients
Top 10 ISVs - 8Top 100 ISVs - 35Top 25 Internet Companies - 6Clients (280+) include:
• American medical device manufacturer
• European healthcare company• European software ISV
US-based internet ISV
Global Delivery Centers
Global Headcount: >5,000Locations: 25+ major delivery center locations: North America - USEurope - Austria, Finland, France, Germany, Ireland, Poland, Netherlands, Romania, Switzerland, Turkey, UKAPAC - India, Australia, Japan, Philippines, Singapore
Proprietary Platforms/Tools
Total patents filed/granted: 100-250Key IPs:• HOLMES: Cognitive automation tool• DevAssure: Device assurance test
automation solution• AppAssure: Application assurance
test automation solution
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Wide breadth of service offerings Strong delivery ethosHigh quality of clientsDistributed delivery footprint Client relationships
37Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
EpamAn experienced software product engineering service provider with a strong European delivery base, full service portfolio, strong account management; strong growth primarily fuelled by acquisitions
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ End-to-end service portfolio: Product development service scope covering digital strategy, use experience design, advanced technology and agile delivery. It focuses on data-driven engineering for digital transformation to provide value from both operational and strategic point of view. EPAM leverages its industry and technology consulting capabilities to define platform and product strategy for its clients. Has provided services to more than 300 ISVs since 1993 and has customers across revenue segments
§ Account Management: Average FTE/client and revenue/client is on the higher side relative to its competitors, which reflects positively on the depth and breadth of its engagements. Multiple positive customer references
§ Patent and innovation credentials: Allocates 3% of its revenue towards its R&D efforts and innovation; has a focused IP strategy that is based on 4 pillars - free and open source, platforms, venture and accelerators (people organization, infrastructure and platforms). Has one of the top 20 contributors to open source projects on GitHub from among the employees on its rolls
§ Capability augmentation through acquisitions:Has acquired more than 10 companies since 2014 in the areas of service design, digital strategy, experience design and analytics. Its vertical focus areas for acquisitions are Healthcare, Life Science and Financial Services. These acquisitions have helped the company to grow its capabilities in some of the niche areas
§ Long-term contracts: The percentage of EPAM's business from log-term contracts is among the highest in the industry
Strengths
§ Large-scale initiatives on cross-functional training: The company's annual software-product engineering related training hours per FTE is less than the industry average, which is an area of improvement for the company. The company has been investing in educational and resource development activities that include competency development and focus on skills. It has also developed a 'Career Development Program' that enables all employees to increase their knowledge in both technical and soft skills. Has established EPAM University to train its resources
§ Relocation as talent acquisition option: Has recently opened a new centre at Malaga, Spain to strengthen its presence in Europe. This is also planned as an attractive relocation and talent acquisition option for top-level engineering talent from the EU, CIS, LATAM and APAC. Plans are on to ramp up the headcount from 50 to over 200.
Talent Strategies
Acquisitions/Partnerships
Acquisitions• Continuum Innovation (2018)• Tahzoo.nl (2017)• Informatix (2016)• Dextrys (2016)• Netsoft (2014)
Partnerships• Adobe, SAP, Sitecore, Oracle,
Microsoft
Key Clients
Top 10 ISVs - 5Top 100 ISVs - 23Top 25 Internet Companies - 4Clients (350+) include:
• IPREO• Liberty Global• SAP• UBS• Workfusion
Global Delivery Centers
Global Headcount: >5,000Locations: 10+ major delivery center locations:
Europe - Belarus, Russia, UkraineAPAC - India
Proprietary Platforms/Tools
Total patents filed/granted: NAKey IPs:• TelescopeAI: Enables IT projects and people
intelligence together in a unified, modular platform to manage projects successfully and drive greater productivity
• InfoNgen: Actionable insights for structured and unstructured data
• Dlab: Toolset for analytics for creating & managing exploratory environments
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
End-to-end software product engineering expertise Account managementLong-term contracts Patents & acquisitions
38Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
GlobalLogicA global engineering services provider with distributed delivery presence, expertise in emerging areas and a strong partnership ecosystem
Sources: Secondary Sources, HfS BluePrint Report - Software Product Engineering Services, August, 2018. The information has been collected from respective websites, annual reports
§ Strong focus on verticals: Collaborates with leading vertical ISVs to develop products and services for business outcome. technology enablement and user experience. Its focus verticals are life sciences, pharmaceutical, and medical device companies where it is looking to accelerate innovation, shorten time-to-market, enable new business models and revenue streams
§ Global delivery presence: Has strong onshore presence. Client proximity has helped GlobalLogic to build strong client relationships. Additionally it has strong presence in nearshore locations including Croatia, Poland, Slovakia and Ukraine. Also has presence in innovation hubs such as California and Israel
§ Emerging areas expertise: Has expertise in DevOps, IoT, Analytics, Mobility, and cloud computing areas. It has built proprietary tools and is working with a number of clients in these emerging areas
§ Partnership ecosystem: Leverages its partnership ecosystem to understand the needs of the end-clients and to develop joint solutions and GTM
§ Acquisition-led growth strategy: Aspires to be a US$1bn company by 2020 and acquisitions is one of the targeted strategies to get there. Its initial acquisitions were mainly focused on geographic expansion and to build its global delivery network. However, it is now trying to focus on targeted providers in specific verticals to expand its capacities
Strengths
§ Hiring for consulting talent: Stepping up its consulting capabilities is a critical step for GlobalLogic's positioning as a end-to-end service provider in the software engineering space. To focus more on the clients' business challenges, roadmap definition and transformation efforts, it expects to increase its bench-strength in the consulting domain
§ Talent management strategies to fuel growth: To sustain the growth it has achieved in the past few years, GlobalLogic has successfully scaled up its software product engineering practice and has the necessary foundations to continue to scale. It is working on its challenges in terms of creating a strong pipeline of technology-competent, industry-ready talent and capability to support growth initiatives
Talent Strategies
Acquisitions/Partnerships
Acquisitions• REC Global (2016) • Method (2011) • Rofous (2011) • Cubika (2010)
Partnerships• NA
Key Clients
Top 10 ISVs - NATop 100 ISVs - NATop 25 Internet Companies - NAClients include:
• American Infotech company• US Enterprise ISV• Leading software company
Global Delivery Centers
Global Headcount: NALocations: 10+ major delivery center locations: North America - Canada & USEurope - Croatia, Israel, Poland, Slovakia, UkraineAPAC - India
Proprietary Platforms/Tools
Total patents filed/granted: NAKey IPs:• Its service offerings cater to product
advisory, product deployment, support and sustenance, localization and professional services
New Product Development
Sustenance
Testing
Deployment
Support
Product Management
Presence in the value chain
Customer Segments
Vertical ISVs
Technology ISVs
Enterprise Platforms
Internet Companies
Practice Highlights
Vertical-specific capabilitiesGrowing capabilities in emerging areas Acquisition-led growth strategy
39Copyright © Avance Consulting 2019. All Rights Reserved
Product Engineering Talent Intelligence – US | June 2019
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Continuous evolution of Digital business models has disrupted the existing norms; new roles are being created while old ones are becoming redundant. Hiring methodologies are changing and re-skilling initiatives have taken the centre stage. Automation, Cloud & Cybersecurity, IoT and Immersive Technologies are driving the next round of change. Businesses are becoming more customer-centric and decision-making being driven by Data.
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