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Potential for outsourced
services estimated around $10 b-12 b
Among the global firms that have set up base here, UK's
Rolls-Royce Group Plc has already established a
wholly-owned subsidiary in the country to manage the
growing volume of engineering work that it is
sub-contracting to India.
The growing shortage of core-sector engineers across the
globe has international firms flocking to tap Indian civil
and mechanical engineering skills. India, which had nearly
four lakh engineers graduate in 2005 as against just
70,000 passing put in the US, is seeing jobs of
transactional engineers coming in, especially in the core
infrastructure sectors. While engineering work currently
being executed by India-based vendors is estimated to be
around $500 million, analysts estimate the market
potential for outsourced engineering services is estimated
to be around $10 billion-$12 billion.
Overseas consultancy
Besides the engineering outsourcing pioneers such as L&T,
Thermax, Mahindra and Hero Global Design, firms such as
NTPC Ltd and Power Grid Corporation India Ltd (PGCIL) are
now betting big on overseas consultancy assignments. NTPC
is offering training to power engineers of Aluminium
Bahrain and technical personnel of Oman Refinery Company
at its facilities here and has deputed shift engineers to
power stations in Nigeria in lieu of sizeable consultancy
charges. PGCIL is in the process of roping in retired
engineers on a contractual basis to execute projects at
home as it is putting several of its regular engineers on
overseas consultancy assignments due to the huge demand
for heavy engineering skills abroad.
The India subsidiary of the US-based Quality Engineering
and Software Technologies (QuEST), which employs around
700 engineers in Bangalore, is executing direct
engineering work packages and sub-contracting projects
from India for clients abroad, including several Fortune
500 firms. The company offers concept design to drafting
and modelling, to analysis and product realisation
solutions in sectors such as aerospace, automotive
engineering, energy, industrial products and the petroleum
domain.
Among the global firms that have set up base here, UK's
Rolls-Royce Group Plc has already established a wholly
owned subsidiary in the country to manage the growing
volume of engineering work that it is sub-contracting to
India.
Based in Bangalore, Rolls-Royce Operations India Pvt Ltd
would tap domestic engineering analysis and design
capability skills in developing aero-engineering
solutions. Analysts predict that the country is also set
to get a bigger piece of the auto offshoring business.
According to an AT Kearney online survey of American
Automotive Executives, India leads the outsourcing market
when it comes to auto-outsourcing with 24 per cent of auto
manufacturers giving it the thumbs-up for outsourcing,
much higher than those favouring China, Mexico and the
Philippines. Eicher Motors has also forayed into
engineering services outsourcing with the acquisition of
the US-based company Design Intent Engineering (DIE) and
the company expects new business to contribute revenue to
the tune of $100 million in the next four years.
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http://www.thehindubusinessline.com/2006/04/10/stories/2006041002960100.htm |
