NASSCOM’s Engineering Forum was set up to accelerate innovation within the Indian engineering industry. The Forum is helping India sustain its competitive advantage as the most preferred destination for engineering services. At the same time, it is helping the country build its engineering capabilities, in sync with the rapidly evolving global Engineering R&D services landscape.
According to a NASSCOM–Booz Global Engineering R&D report released in May 2010, globally offshorable revenues of both traditional verticals (Aerospace, Automotive, Telecom, Semiconductors, Consumer Electronics and Construction/Heavy Machinery) and emerging verticals (Computing Systems, Energy, Infrastructure, Industrial Automation and Medical Devices) are expected to reach USD 90-100 billion. Of this, India ill b garner a share of around 40 percent by 2020, equivalent to USD 40-45 billion. The sector’s existing share stands at USD 7.9 billion.
As the landscape evolves in terms of New Markets, New Industries and Value Chain, and as the Indian Engineering and R&D (ER&D) services offshoring industry enhances its value proposition, it is getting increasingly critical for the sector to augment its existing capabilities. It also needs to enter into engagements that lead to end-to-end product development, in order to reach its set targets.
The future is indeed bright for the engineering services sector, the Global Engineering R&D report indicates. Recent trends show that ER&D activities are moving closer to emerging markets, and that there growing confidence among global customers in India’s supply base capabilities. Growth in local markets and the emergence of new verticals are further spurring the evolution of the ER&D industry. Higher government spending on infrastructure and energy, increased use of electronic components and communications technologies, convergence of technologies and the search for alternative sources of energy are expected to further drive the demand for ER&D services and capabilities in the future.