Info-tech

Nasscom pegs engineering design market at $40 b by 2020

Our Bureau Pune | Updated on March 12, 2018

Mr Som Mittal, President, Nasscom.





India is ranked first in the global Engineering Research and Development and Design (ER&D) outsourcing industry with a 22 per cent share in the revenue, and a study by Nasscom projects the market for these services to quadruple over this decade to touch $40-45 billion by 2020.

“Indian ER&D service has played a pivotal role in accelerating innovation and is establishing India as a design and innovation hub. I am sure, with this exponential growth, India will fast climb the services ladder with greater domain capabilities and establish its leadership in the ER&D space,” Mr Som Mittal, President, Nasscom, said.

With over 400 service providers employing nearly two lakh people and revenue of $9-10 billion, ER&D currently contributes 15 per cent of the $60 billion strong Indian IT-BPO export industry. During FY 2011, the cost savings by India-based ER&D Centres was over $20 billion.

Design is issue was no longer about cost arbitrage, but access to resource who can reduce cost to market and provide end to end design, Mr Mittal said, adding that some of the drivers for this industry were companies moving to countries where geography-specific products had to be designed and the need to be energy efficient.

Mr Ravi Pandit, Chairman, KPIT Cummins, said globally ER&D was a trillion dollar industry. While in India engineering design for the auto sector was happening for a long time, medical electronics, consumer electronics, telecom and energy were now emerging as important sectors.

Nasscom today kick-started the two-day ‘Engineering Summit 2011' here. The theme of the Summit is ‘Innovation and High Value Engineering – India as a Strategic Partner.'

Published on October 12, 2011

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