Engg Srvcs Exports (Excluding IT/Telecom) Cross Rs 10000cr

A study by CyberMedia group’s flagship IT magazine, Dataquest says that driven by the offset requirements of India’s defense purchase and the country’s enhanced profile as an engineering base after the launch of Nano, engineering services outsourcing to India will accelerate.

The engineering services exports (excluding software product engineering, semiconductor design, and other high tech/telecom engineering) from India grew 25.6% in 2007-08 to reach Rs. 10,110 crore, according to a study published by Dataquest, the flagship IT publication of CyberMedia group. The Indian third party service providers accounted for 56% of that revenue, while the captives had a share of 41%. The non-Indian third party service providers accounted for the rest.

Aerospace and automotive industries led the engineering design and services outsourcing to India. A few recent developments in these industries have significantly impacted the engineering services outsourcing, says the Dataquest study. Some of these include: high oil prices leading to design of newer fuel-efficient cars, India’s plans to buy 100 plus fighter aircrafts with significant offset requirements (which stipulates that 50% of the total contract value to any supplier will have to be spent locally), and the launch of Tata Motor’s Nano, which has raised the profile of India as an automotive engineering base.

“All these developments have significantly enhanced the action in the engineering services outsourcing area. They have paved the way for the revenues to start flowing in beginning this year when we can expect the growth to accelerate sharply,” said Shyamanuja Das, Editor, Dataquest, who led the research.

The study also outlines that India’s own market as a major automotive market has drawn many of the automotive manufacturers and their tier one OEM suppliers to India. Most of them have also used the opportunity to tap India’s engineering talent. Car manufacturers such as Ford, GM, Chrysler Honda, and Volkswagen and their suppliers such as Delphi, Eaton, and Visteon have all set up engineering design centers in India.

Top Players

The top 15 firms account for 93% of the total engineering services exported by the India-based engineering services firms. India’s top IT services firm, TCS, leads the list, followed by HCL and Satyam. The list itself is a mix of three types of players — the broad-based IT services firms such as TCS, HCL, Satyam, Infosys, and Wipro; the specialized players such as Infotech Enterprise, Quest, Geometric and Neilsoft; and the design arms of Indian engineering companies such as Tata Technologies, Mahindra Engineering Services and L&T Infotech.

Source from: news.moneycontrol.com/india/news/pressnews/
engg-srvcs-exports-(excluding-ittelecom)-cross-rs-10000cr/18/48/353052

Engineering and Architectural Outsourcing at Boom

Domination of India software industry doesn´t need introduction any more. India software development and support services are catering the industry in the best possible manner. And making these more complimentary is the outsourcing process of services and support to India. Big shots gun Like US and UK are outsourcing their work to India. And in the process of outsourcing each and every single work is outsourced and architectural and engineering outsourcing is vital part of this outsourcing process.

Engineering and architectural outsourcing implies producing drawings in India where as the designers are far there in other countries waiting for the drawings produced in India. This is called on-site (design base) where as the production site is called off-shore. As Indian brains are best in the industry countries like US, Europe and Australia are outsourcing engineering and architectural designs and work. They are open to Indian market and this is making our economy more booming and strong.

Successful engineering outsourcing has following points for success:

Great Brains at Minimum Budget: Engineering outsourcing is not an easy job and these engineering designs and work needs lot of input. The ontime delivery and throughput is must for the timely success of the project. Which is very much essential to make any project successful? And keeping in mind the budget and the duration of work involved, Indian market offers best man power with brilliant brains and less costing. Delivering the quality engineering drawings and work at the right time. The main reason for engineering outsourcing to India.

Motivational Factors: Great Indian brains are more motivated showing more productivity for higher rewards and remuneration. As the cost difference between onsite and offshore has great difference. People on offshore production center are highly paid and show more productivity.

Quality and Standard: As engineering outsourcing, engineering works, engineering designs needs great perfection and quality. World knows that India brains are hard to find. And work standards are very competitive and error free. Indians show great level of professionalism, in each and every department of services. Getting the best quality and timely works lure these countries to outsource engineering and architectural work to India.

Pricing: As the pricing of quality work, design and development is very much cheaper in countries like India. Countries like US and Europe get their work delivered at low price.

Brain Drain: As due to bad infrastructure and economy, India suffers brain drain, but due to engineering outsourcing. Indian brains will not be going to leave their country as they will be lured by good salary and prospects by these companies. They will also have all options open to visit the on. Thus attracting the best talent to them these engineering outsourcing firm benefits to maximum.

These points make engineering outsourcing so successful in India. And there are many firms which are offering the best services for engineering outsourcing.
Source from: losangeleschronicle.com

Indian Cities Leading the Outsourcing Pack

A joint study by Cyber Media’s Global Services magazine and investment advisory firm Tholons listing the ‘Top 50 Emerging Outsourcing Cities´ has found India leading the pack listed with six cities while China is listed with five cities and Philippines with one. This is a clear reflection of the potential the IT skills and outsourcing prowess that India wields. Emerging at the top is Chennai followed by Hyderabad at second position and Pune at No.3, Kolkata at No.5 and Chandigarh at 9th position.

Developed infrastructure, highly skilled work force and lower costs and attritions are factors that worked to Chennai’s advantage. The report claims that Chennai is expected to house more than 73,000 workers of the top three Indian Information Technology services companies. Also, it has emerged as an established location for automotive engineering, productive development and healthcare BPO.

Indian cities are attracting outsourcing industry biggies due to various reasons such as infrastructure development which is attracting many foreign investors. Better planned roads and public facilities, cost of living, prominence of educational institutions, lowering operating costs and lower attrition rates are also leading factors for making India a leading outsourcing destination.

Among other cities, Bangalore, Mumbai, Chennai and Hyderabad have been ranked among the best for their application development and maintenance skills. Established destinations, according to the report in the field of business analytics, are Delhi NCR and Mumbai with Bangalore ranking as an emerging destination. For engineering services established leading cities include Bangalore, Chennai and Pune with Delhi NCR ranking as an emerging location.

The cities are ranked according to scale and quality of work force, the inclination towards identifying skill-sets and work force related metrics, and financial, infrastructure and risk environment.