Engineering, R&D export revenue may touch $45 billion by 2020: Nasscom
- Livemint" target="_blank">Livemint
- October 9, 2014
Mumbai: Engineering and research and development (ER&D) export revenue from India may touch $37-45 billion by 2020, up from an estimated $12.4 billion in financial year 2014, according to software idnsutry lobby body Nasscom.
With over 600 local and 400 global ER&D centres, employing over 200,000 engineers from service providers and engineering firms, India is fast emerging as a solution provider to the global challenges in the engineering and design arena, Nasscom said in a statement on Wednesday.
Some examples include L&T Technology Services—a unit of India’s largest engineering and construction company Larsen and Toubro Ltd (L&T), which on Wednesday announced its plans to buy the engineering services division of US-based Dell Inc. for an undisclosed sum.
On Wednesday, Ramco Systems Ltd, yet another software services firm, specialising in aviation engineering announced it had bagged three deals from clients in the US, UK and Dubai.
According to the ‘Global R&D Service Providers Rating 2013’ annual study by advisory firm Zinnov Management Consulting, global companies are expected to spend over $27 billion on engineering analytics by 2017, with Indian service providers accounting for over 23% of the global ER&D market.
Big- and mid-sized Indian information technology (IT) services providers like Tata Consultancy Services Ltd (TCS), Infosys Ltd, HCL Technologies Ltd, Wipro Ltd, Tech Mahindra Ltd, KPIT Technologies Ltd and Tata Technologies Ltd also have big clients in the engineering vertical, and partner with networking companies to provide similar solutions that take advantage of technologies like M2M or Machine-to-Machine (where information is collected by a sensor transmitted across a network of wired or wireless devices), and smart meters—that monitor consumption and use analytics.
“The next decade will largely be driven by disruptive technologies, changes in competitive landscape and consumer preferences, increased digitization and demand for mobility. We are positive that these opportunities will continue to be addressed by engineering companies to establish India as a strong destination for innovative solutions,” said B.V.R Mohan Reddy, vice-chairman of Nasscom.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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