The engineering design and products development segments generated export revenues of USD 10 billion in FY2012; growing by about 14 per cent, driven by increasing use of electronics, fuel efficiency norms, convergence of local markets, and localised products. The Indian IT-BPO industry has invested significantly to strengthen their customer outreach and build engineering capacity and capability not only across new and existing verticals but also across the full spectrum of product development value chain.
Key Highlights during FY2012
ER&D exports cross USD 10 billion, a growth of about 14 per cent over FY2011 driven by competitive markets and decline of skilled workforce in Western countries
ER&D firms are increasingly developing capabilities that are enabling them to participate across all stages of ER&D, thereby delivering high-end services to customers
SME firms in ER&D ingraining the ‘innovation mindset’; exploring growth opportunities by addressing whitespaces across various verticals
Traditional verticals – automotive and semiconductors increasing ER&D offshoring as also emerging verticals like energy and utilities
Demand is being driven by an increasingly competitive market and changing demographics among the Western countries – availability of skilled engineering workforce is on the decline