The product development services market is currently undergoing a fundamental move to a more proactive, solution-based approach, which Forrester defines as product development services 2.0 (PDS 2.0). This report examines this ongoing evolution and identifies the key challenges providers face in pivoting to this new model successfully. It assesses the best practices and strategic investments required in areas such as IP and solution accelerator development, new sales practices, and domain-led solution engineering. And finally, we've provided a self-assessment tool that will help services firms understand their evolution as well as the sophistication of their PDS 2.0 offerings.