Engineering services to touch $45 b: Study

Of this export revenues is expected to be US$35-40 billion and domestic revenues US$4-6 billion. It will be the next growth engine for IT-BPO industry.Briefing reporters, Booz & Company Partner Vikas Sehgal said engineering services has expanded to include all hi-tech and emerging verticals such as semiconductor design, aerospace and nuclear engineering.

Releasing the Global ER&D: Accelerating Innovation with Indian Engineering study he said accelerating demand and India’s potential to meet it with increasing workforce and expertise nurtured in its industrial environment, have made India the fastest growing centres for engineering services in the world.  Nasscom President Som Mittal said companies today have emerged from peripheral services to critical portion of it, pointing out that growth in engineering services will not be demand constrained, but depends on ability of Indian industry to take advantage of the opportunities. The Indian Engineering R&D services market registered revenue growth of over 40 per cent in the last three years, with 2009 revenues amounting to US$8.3 billion and an increase in employee base from 54,000 in 2006 to 150,000 in 2009.

“India is now the epicentre for global ER&D services with a compelling value proposition based upon growing depth and breadth of services, flexible business models, large engineering base and global footprint with greater proximity to customers,” Mittal said.