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Potential for
outsourced services estimated around $10 b-12 b
Among the global firms that have set up base here, UK's
Rolls-Royce Group Plc has already established a wholly-owned
subsidiary in the country to manage the growing volume of
engineering work that it is sub-contracting to India.
The growing shortage of core-sector engineers across the
globe has international firms flocking to tap Indian civil
and mechanical engineering skills. India, which had nearly
four lakh engineers graduate in 2005 as against just 70,000
passing put in the US, is seeing jobs of transactional
engineers coming in, especially in the core infrastructure
sectors. While engineering work currently being executed by
India-based vendors is estimated to be around $500 million,
analysts estimate the market potential for outsourced
engineering services is estimated to be around $10
billion-$12 billion.
Overseas consultancy
Besides the engineering outsourcing pioneers such as L&T,
Thermax, Mahindra and Hero Global Design, firms such as NTPC
Ltd and Power Grid Corporation India Ltd (PGCIL) are now
betting big on overseas consultancy assignments. NTPC is
offering training to power engineers of Aluminium Bahrain
and technical personnel of Oman Refinery Company at its
facilities here and has deputed shift engineers to power
stations in Nigeria in lieu of sizeable consultancy charges.
PGCIL is in the process of roping in retired engineers on a
contractual basis to execute projects at home as it is
putting several of its regular engineers on overseas
consultancy assignments due to the huge demand for heavy
engineering skills abroad.
The India subsidiary of the US-based Quality Engineering and
Software Technologies (QuEST), which employs around 700
engineers in Bangalore, is executing direct engineering work
packages and sub-contracting projects from India for clients
abroad, including several Fortune 500 firms. The company
offers concept design to drafting and modelling, to analysis
and product realisation solutions in sectors such as
aerospace, automotive engineering, energy, industrial
products and the petroleum domain.
Among the global firms that have set up base here, UK's
Rolls-Royce Group Plc has already established a wholly owned
subsidiary in the country to manage the growing volume of
engineering work that it is sub-contracting to India.
Based in Bangalore, Rolls-Royce Operations India Pvt Ltd
would tap domestic engineering analysis and design
capability skills in developing aero-engineering solutions.
Analysts predict that the country is also set to get a
bigger piece of the auto offshoring business.
According to an AT Kearney online survey of American
Automotive Executives, India leads the outsourcing market
when it comes to auto-outsourcing with 24 per cent of auto
manufacturers giving it the thumbs-up for outsourcing, much
higher than those favouring China, Mexico and the
Philippines. Eicher Motors has also forayed into engineering
services outsourcing with the acquisition of the US-based
company Design Intent Engineering (DIE) and the company
expects new business to contribute revenue to the tune of
$100 million in the next four years.
Source :
http://www.thehindubusinessline.com/2006/04/10/stories/2006041002960100.htm
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