India can stretch the offshoring industry further
to tap the $750 billion-a-year global engineering
services industry. The country, which enjoys a strong
position in the automotive and high-tech telecom engineering
services market with expected earnings of $25 billion
by 2020, can nearly double it, according to a latest
study was jointly conducted by NASSCOM and Booz Allen.
demand for engineering talent is growing, and emerging
market countries such as India will play a vital role
in expanding capacity," said Kevin Dehoff of
Booz Allen. "Companies will increasingly create
competitive advantage by accessing and building core
innovation capabilities in a world-class global network,"
he said in the report.
offers the greatest potential for expansion, though
it is one of the toughest opportunities to tap because
of its close association with the defence sector,
the report pointed out.
services are a $40 billion opportunity for India by
2020, but to achieve that there is need to create
2,50,000 jobs for Indian engineers and also chalk
out a roadmap for stakeholders to achieve this, said
Harsh Gupta, director, Centre for Design and Research,
Pentair. To capture that market, what is needed is
a brand name for Indian services, same on the lines
of software, he added.
total offshore engineering spend is expected to grow
to $150-$225 billion by the year 2020, and India with
its talent pool and existing experience in engineering
services, is well suited to realise 25 per cent of
this opportunity," said Kiran Karnik, president,
in India have developed capabilities and skill sets,
and invested in technology platforms to leverage this
opportunity. The growth in engineering services signifies
the need for global corporations to expand their R&D
pool beyond their home countries," Mr Karnik
said in the report.
services offshoring presents a tremendous opportunity.
It will not only generate significant revenues but
will also place India on the global innovation map,
industry experts said in the report. They, however,
emphasised the need for training and retaining talent,
which is critical to the county maintaining its current
and telecom are the dominant and fastest growing sectors,
with 30 per cent of the market. And, with traditional
engineering powerhouses - USA, Germany and Japan -
having a lead in engineering spend, the report also
called for greater support from the government to
realise this opportunity.