India sitting on engg services offshoring goldmine

Offshoring of engineering services can be $40 billion opportunity for the Indian IT industry by 2020. The largely untapped domain also has the potential to create 250,000 jobs for Indian engineers, according to a study by Nasscom and management consulting firm Booz Allen Hamilton.

The findings of the study titled - 'Globalization of Engineering Services - the Next Frontier for India' were released today. 

"The Indian IT and software industry is continuously renewing itself and seeking to grow by addressing newer service lines; the latest one being engineering services. Companies 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" Kiran Karnik, president of Nasscom said while talking about the report.

"The 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 realize 25% of this opportunity. However, we must ensure that required steps are taken by stakeholders to address possible roadblocks - especially those concerning workforce", he added.

"The demand for engineering talent is growing, and emerging market countries such as India will play a vital role in expanding capacity...  Companies will increasingly create competitive advantage by accessing and building core innovation capabilities in a world-class global network," Kevin Dehoff, VP at Booz Allen, said.

Vikas Sehgal, executive director, Booz Allen Hamilton said: "For India, Engineering Services Offshoring presents a tremendous opportunity - it is not only a significant revenue generator, but will also place India on the global innovation map. Attaining, training and retaining talent will be a critical next step for India to maintain its current advantage."