- BPO in engineering services could be next
big opportunity for India: Nasscom
Bangalore , June 20
THE National Association of Software and Service Companies (Nasscom)
said on Monday that outsourced engineering services with market
potential of $7-12 billion could be the next big opportunity for
India.
At present, the value of work undertaken by India-based vendors
in this space was around $500 million, which highlights the significant
untapped potential.
The Nasscom Chairman, Mr S. Ramadorai, said the engineering services
currently offered from India are around product design, process
engineering, plant operation and enterprise asset management among
others.
Several Indian IT firms as well as niche-engineering firms and captive
units were doing high-end work in verticals such as automotive and
aerospace, he said.
Till now, engineering services were divided into IT services (R&D
services) and ITES-BPO (engineering BPO) services.
"However, as this market evolves, and increases in terms of
maturity, we will consider it as a separate segment," Mr Ramadorai
said. The target verticals for Indian firms in engineering services
were automotive, aerospace, pharmaceuticals, construction, manufacturing
and embedded software and chip design, he said.
The Nasscom President, Mr Kiran Karnik, said the apex industry body
plans to set up an Engineering Services Forum that would focus on
building a brand for India as the outsourcing destination for engineering
services and also set standards for this space.
The Nasscom Vice-Chairman, Mr B. Ramalinga Raju, said competition
from China was a concern for the industry. However,
India could compete with China by harnessing its strengths, he said
adding, the success in India's IT services could be replicated in
the engineering services space.
Countries such as Germany, the UK, France and the US dominate the
outsourced engineering services industry. About 13 per cent of the
outsourced engineering work is carried out in India whereas China
and other Asian countries account for 19 per cent, according to
Nasscom.
Replying to a query, Mr Karnik said though China has emerged as
the destination for mass manufacturing, India with its high engineering
base and IT expertise could emerge as the destination for high value
manufacturing.
http://www.thehindubusinessline.com/2005/06/21/stories/2005062101050400.htm
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