Engineering services, the next growth frontier: NASSCOM study

Bangalore, Aug 3 (UNI) Offshoring of engineering services will chip in an additional opportunity of US Dollars 40 Billion for India by 2020, according to a joint report by NASSCOM and Booz Allen Hamilton, a management consulting firm.

The study ''Globalisation of Engineering Services-the Next Frontier for India'' was the first one to take a systematic and comprehensive view of the role of emerging markets in engineering services and assess the evolution of the engineering market between 2005 and 2020.

It outlined the existing and potential opportunities along five verticals and four service lines.

NASSCOM President Kiran Karnik said the Indian IT and software industry was continously renewing and seeking to grow by addressing new service lines. The latest one was engineering services.

''Companies in India have developed capabilities and skill sets, and invested in technology platforms to leverage this opportunity,'' he said, adding that the growth in engineering services signified the need for global corporations to expand their R and D pool beyond their home countries.

''The total offshore engineering spend is expected to grow to US 225 billion by the year 2020, and India with its talent pool and existing experience in engineering services, is well suited to realise 25 per cent of this opportunity. However, we must ensure that required steps are taken by stakeholders to address possible roadblocks-especially those concerning workforce'', he added.

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