India is set to become a global giant in design and engineering services (covering CAD/CAM/CAE etc). Several major auto/aero original equipment manufacturers (OEMs) such as GE, GM, Cummins have already established their engineering/R&D centres in India. Engineering process outsourcing (EPO) business is expected to grow to $20 billion in the coming decade. Major players in this area such as Wipro, Infosys, Tata, L&T, TCS, HCL are looking into moving up the value chain through R&D initiatives. 

“To maintain a competitive advantage we will have to look more into R&D activities; partnering with companies for full product life cycle — from concept to end product,” said ProSim R&D Pvt Ltd Managing Director S Shamasundar.

For this companies need to re-focus their strategies, targeting high-end work and not just computer designing. “In coming decades we will be in a position to handle huge volume of outsourcing work,” he told Deccan Herald. 

But Indian companies face challenges of finding skilled and trained engineers, and competition from China, Eastern European — Hungary, Belgium, Romania. To acquire required skilled manpower there needs to be multi-party collaboration between companies, government and academic institutions, he added.

As per Nasscom study engineering services business comprising CAD/CAE & related computer simulation technologies outsourcing to India is poised to grow at 30 per cent to reach $40 billion by 2020 and create employment potential of about 2.25 lakh. Some EPO verticals set to grow in is defence, government, telecom, pharmaceuticals, medical equipments and general white goods.