Airbus to offload more engineering and design work to India
12 Oct 2009
European passenger plane maker Airbus SAS plans to move 20 per cent of its engineering and design activities to low-cost countries to compete better against its main rival Boeing Co. India is tipped to get the major portion of the work that the aircraft maker plans to move out.
Airbus has an engineering centre in Bangalore with a 120-strong workforce, slated o grow to 450-strong next year. It outsources work to around 20 Indian IT and engineering service providers, including Infosys Technolgies Ltd, Satyam Computer Services Ltd (now owned by Tech Mahindra Ltd), Quality Engineering and Software Technologies Pvt Ltd (Quest) and HCL Technologies Ltd.
Eugen Welte, head of operations at Airbus Engineering Centre India Pvt Ltd, while speaking at an aerospace symposium in Bangalore on Saturdy, said around 60 per cent of the work would be done internally while 40 per cent would be outsourced.
He added that Airbus would increase the work it outsources to Indian firms to save up to 40 per cent on costs.
Aero engine maker Snecma, which is its largest supplier, has also been directed by the aircraft maker to offload more work to India to pare costs either through captive centres or through working with local suppiers. Welte said the engine maker sets price reduction target(s) every year.
Though Airbus operates centres in China and Russia as well, the majority of work will be done out of India, Welte added.
