Pressures to reduce costs will be the primary drivers of decisions by aerospace and defense (A&D) companies to use external engineering services during the next two-to-three years, according to new Accenture (NYSE: ACN) research released recently.

Ninety percent of the executives interviewed cited cost reduction pressures as their top challenge, followed by supplier consolidation (52 percent) and increased competition from new companies (36 percent). Consistent with these findings, the research revealed that 61 percent of these executives are buying engineering services to better manage production costs; 65 percent of them cited the need for improved efficiency and productivity.

“What is changing as a result of mounting cost pressures and efficiency demands is the way aerospace and defense companies are driving engineering services activities, including where these services are sourced and the spectrum of activities sourced,” said Damien Lasou, managing director of Accenture’s Aerospace & Defense business practice.