The Next Growth Frontier - $40 billion opportunity for India by 2020
spending on engineering services ($750 billion in 2004) is projected to
increase to $1.1
trillion by 2020.
*India's GDP in 2004 was less than $750 billion
NASSCOM the premier trade body and the
“voice” of the Indian IT industry, and management consulting firm Booz
Allen Hamilton, today released the key findings of a study “Globalisation
of Engineering Services – the Next Frontier for India”.
This is the first study 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.
Discussing the report, Mr. Kiran
Karnik, President NASSCOM said, “The Indian IT and software
industry is continuously renewing itself and seeking to grow by
addressing newer service lines; the latest one being engineering
services. Companies in India have developed capabilities and skill
sets, and invested in technology platforms to leverage this
opportunity. The growth in engineering services signifies the need
for global corporations to expand their R&D pool beyond their
“The total offshore engineering spend is expected to grow to US$150 – US$225 billion by the year 2020, and India with its talent pool# and existing experience in engineering services, is well suited to realize 25% of this opportunity. However, we must ensure that required steps are taken by stakeholders to address possible roadblocks - especially those concerning workforce”, he added.
Read Full Report Summary at NASSCOM