India has potential to emerge ESO powerhouse: NASSCOM

Bangalore, Aug 6 (UNI) The strong track record of IT services and BPO operations, coupled with highly talented engineers, can propel India into a potential powerhouse of emerging Engineering Services Outsouring (ESO).

According to the just released NASSCOM-Booz Allen Hamilton study on ESO, considered the next frontier India should conquer, ''if it is handled well, India's share of the global ESO market can take off at the same time as worldwide demand for ESO increases.'' It said ''India has the potential to control 20 to 25 per cent of the global market for offshored engineering services by 2010 (from the current level of 12 per cent)''. By 2020, that number could be 25 to 30 per cent or 50 billion Dollar of the expected US dollar 150 to 225 billion.

Another positive factor for India was that many of the vendors, who would evolve into engineering services providers, already have a great deal of experience winning and retaining BPO and ITO contracts, the study said.

''The delivery models from India are well established, and after a decade or more in business, these vendors are likely to have developed the ability to maintain a very high level of quality control. Indeed, quality levels among current Indian providers of engineering services are already high and climbing fast,'' the study said.

Citing an example, the study said an Automotive Tier-1 supplier that offshored more than 20 per cent of its engineering services to India found that in a single three-year period, the number of 'first time right' designs produced by its Indian ESO partners increased dramatically from 45-55 per cent of all designs in 2001 to 89-92 percent in 2004, matching or exceeding the 'first time right' levels of the firm's own engineers.

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