Outsourcing Engineering Services to India
Potential of ESO:
Engineering services represent one of the largest sections of the industrial world, with an
estimated 750 billion $ worth of value addition per year. These services comprise a vast
swatche of design & support services essential for the functioning of practically every
industry, spread across the entire spectrum of engineering. A significant portion of these
services also are being outsourced, and there is potential for more outsourcing in this
field.
Trends:
1. While cost was perhaps the most important aspect in business process outsourcing, in the
case of engineering services outsourcing, the ability to get better quality from a domain
focussed vendor is an equally important driving factor.
2. ESO is much more complex than BPO because of the complex nature of engineering design.
Engineering services delivery revolves around technical skills, domain expertise and good
engineering judgment. Engineering design work centres on product IPs of manufacturing
companies. Most of the services outsourced are related to design services around patented
products, design specifications or customised interiors of a total engineering solution.
3. Almost 30% of companies have outsourced a piece of their new product development and
introduction (NPDI) process. And another 40% are expected to outsource activities in the
next two years, making offshore outsourced engineering services one of the fastest-growing
outsourcing markets.
4. Unlike many areas of business processes that have been traditionally outsourced,
engineering work is generally not seen as a commodity. It is seen as an iterative process
of design and reevaluation. There are many stages — planning, design, manufacturing or
construction, and then finalization. While the entire engineering process does not seem
conducive to offshore outsourcing, there are pieces that can be outsourced. Typically, a
company outsources projects or engineering tasks to another company within the United
States. However, some of this work is starting to go offshore. Larger engineering companies
would actually set up divisions abroad where they would hire foreign engineers to work for
their company. For example, Boeing has a Russian division designing airplane components.
General Electric employs over 6000 engineers and scientists in Israel, Hungary, India and
China to research and develop.
5. A rather wide range of engineering support services have been outsourced for many years,
but most of these outsourcing assignments have been with onshore or nearshore
partners/vendors. Offshore outsourcing of engineering services is a relatively recent
phenomenon and only a small subset of services are currently being offshored - examples are
CAD outsourcing for a variety of design intensive industries, automobile & other product
designing, testing & analysis of products for various parameters and characteristics.
6. Many companies in offshore locations such as India have begun to make a mark
successfully using the skill-sets, tools and experience from IT software and services, to
evolve from providing basic data conversion, through 2D and 3D CAD/CAM/CAE, advanced
simulation, prototyping, testing, PLM, product design (engineering), process engineering,
plant automation and asset management services. Though most of the initial players in the
segment have emerged from legacy IT services businesses, today the segment has matured with
several of these firms having established an independent engineering services practice
India in ESO:
Offshore outsourcing to India holds enormous promise as new industry verticals are being
explored and manufacturers across the globe face the challenge of integrating technology,
design and management for superior performance, reduced time to market, and improved ROI.
Indian companies have successfully leveraged the skill-sets, tools and experience from
outsourcing IT software and services, to gain a strong foothold in outsourced product
design and engineering.
Market potential for India - About 30 billion $ by 2020
The ESO team can help you to identify suitable Indian vendors. ESO can assist you in choosing a vendor who can be more than a mere vendor and can be a long-term business partner.
Sourcing support for Engineering Services in:
With our excellent understanding of engineering services and our wide network of trusted and reliable industry contacts, Engineering Services Outsourcing is uniquely positioned to support you in your quest for finding the right supplier / consultants.
Contact Us
For more information, contact:
Narsi Santhanam
Mobile: +91-98413-48117
Email: info@clixoo.com