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Top challenges faced by ER&D organisations in 2021
Top challenges faced by ER&D organisations in 2021

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Insights in this report are from NASSCOM-Deloitte Global Engineering R&D Pulse Survey, which spanned a survey of enterprises across North American, EMEA, and APAC regions, with participation from over 100 end user enterprises from eight key verticals across 19 countries.

 

2021 was the year when organisations across the world were adjusting to the post pandemic way of working and started building back the losses they faced in 2020. However, the effects of Covid pandemic were still felt and ER&D companies continue to overcome these challenges in 2021 as well. 2021 also witnessed semiconductor shortages which affected many sectors across the ER&D space.

According to the NASSCOM-Deloitte Global Engineering R&D Pulse Survey, supply chain disruptions continued to be the key challenge for ER&D enterprises as they were still experiencing the aftermaths of the pandemic. Liquidity crunch, which was a top challenge in previous years, was no longer the pressing challenge in 2021 and companies were able to tide over that challenge.  

 

Pulse survey 2

 

Post pandemic, the ecosystem has also evolved. With changing consumer tastes, increased digitalization, there is an increased need for faster innovation cycles and product development to reduce the time to market and produce more products and services to accommodate the changing environment. To combat this challenge, co-creation with start-ups, competitors, ESPs, academia etc. is gaining traction.

The traditional challenges of lack of digital R&D infrastructure for product testing and lack of strong IP protection framework seem to no longer be the most pressing challenges for the global R&D leaders.

Sector wise, there are many different challenges faced which are specific to that sector.

  1. Out of the surveyed companies in hardware and electronics and medical devices sector, the companies are most concerned about inflation/supply chain disruptions and their effects on increasing product costs. This could be primarily due to the semiconductor crisis, thereby affecting production and product redesign. For medical devices, the pandemic put excess supply chain pressures especially when it came to vaccine deployment. 
  2. For the software sector, unsurprisingly, speed of change in technology is the most challenging aspect for the companies in the sector. This has particularly been more relevant post pandemic when companies accelerated their digital transformation journeys.

 

If we look at different regions, the following challenges emerge specific to different regions.

  1. Of the companies surveyed, those with headquarters in APAC and North America cite supply chain disruptions on account of the pandemic as the greatest challenge.
  2. However, companies headquartered in EMEA, addressing accelerated innovation cycles/ product development and faster time to market remained the key priority, especially in sectors such as automotive and industrial sectors in EMEA as they are focusing more on sustainability and disruptive technologies post pandemic.

 

Read more insights in the report – “NASSCOM-Deloitte Global Engineering R&D Pulse Survey 2022”

NASSCOM Community https://community.nasscom.in/communities/engineering-research-design/nasscom-deloitte-global-engineering-rd-pulse-survey-2022

NASSCOM Websitehttps://nasscom.in/knowledge-center/publications/nasscom-deloitte-global-engineering-rd-pulse-survey-2022


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Vandhna Babu
Principal Analyst - Research

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