The offshore Indian Engineering,Research and Development (ER&D) market is expected to reach $37-45 billion by 2020 and will create over 1 million jobs. These projections were given by National Association of Software and Services Companies (Nasscom) at its engineering summit held in the city on Thursday.
Delivering the welcome address,Som Mittal,President,Nasscom,said, The Indian IT-BPO industry has witnessed exponential growth over the past decade. The industry,over the years,has invented,transformed and reinvented to increase operational efficiencies,reinvent and embrace new business models offering its customers a transformed business proposition. Indian ER&D service has played a pivotal role in accelerating innovation and is establishing India as a design and innovation hub. The speakers noted that the exponential growth in the Indian ER&D services is a result of flexible business models,short product life cycles,decreasing time to market and flexible capacity driving ER&D sourcing. Growth in this area is being driven by need for new products to meet the growing demand in emerging economies as well as fast evolving customer preferences, the speakers said at the conference.
Chairman,Nasscom Engineering Services,Pune and Chairman and Group CEO,KPIT Cummins,Ravi Pandit,said over the past decade the global ER&D spend has been growing steadily and the industry is targeting new growth engines,driving globalisation of the ER&D structure across verticals and gaining a foothold in ER&D services off-shoring.
Though the Indian engineering services industry has been a leader,it needs to drive concerted initiatives to strengthen the innovation capacity and research capabilities through specific domain focus and by encouraging R&D collaborations, said Pandit.
The incremental growth for the sector will be driven by newer verticals and markets. Significant opportunity exists for supply base to develop product-based solutions that encompass other service offerings. Domestic Indian ER&D market is expected to add to future growth with infrastructure,automotive,aerospace and energy and increasing focus on promoting local manufacturing, he added.
The speakers while adding that ER&D services industry has been growing by leaps and bounds pointed out that certain challenges grip the space and require immediate redressal. The summit emphasised that the country needs to sustain its cost competitiveness and fill its abscence of linkages to manufacturing capabilities. It was also reiterated at the summit that collobrative action is required for ensuring future growth.
The Nasscom summit also noted that ER&D is strategic to India and has the potential to bring a steep change to the economy.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines