Global Trends In Engineering Services Outsourcing

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Global Trends In Engineering Services Outsourcing

Amk

The modern day engineering services sector is a growth oriented market. The present spending in engineering services is likely increase up to $1.1 trillion by 2020. The market is described to be a fragmented one. The CEO s have been viewing overseas as a method to counter market forces that are creating pressure on engineering services. While at one hand, the cost is an issue they are also seek availability to a quality talent that can produce engineering capacity and maximize productivity. Being able to get of a quality engineering firm in such a fast evolving market also offers a chance to an expanding market of consumers and can also lessen the time to market. Whilst in FY05, the percentage of engineering services offshored was $10-15 billion; the market is estimated to increase up to $150 -225 billion by 2020.

Presently India s share of outsourced

engineering services

market is approximately 12 percent, which is relatively small when compared to the figures in technology and business process outsourcing domains. It has been also researched that India is in a strategic position to increase its market share of

engineering services outsourcing

from 12% to 30% by 2020. However, the potential market share can also exceed $40 billion by 2020.

All these aspects, made

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global engineering companies

foray into the country and produce innovative and technologically upgraded engineering products that needs precision and expertise and that caters to the demands of the end users. In order to reduce the production risks, today there is a need for smart engineering services. These global engineering companies offers the following services:

* Resources that substitute or augment the in-house staff

* Engineering analysis

* Design and detailing

* Manufacturing engineering

* Sustenance engineering

* Technical publications

* Special services

* Embedded systems

* Plant and process

* Eases out the cost and margin pressures

* Offers quicker turnaround time ensuring quicker time to market of products

* Works as per pre-specified SLA s that are mutually beneficial

These global engineering service providers engineering and outsourcing solutions that come from their track record of multiple man hours of offering engineering services. This has made them come up with Global Product Development (GPD) centers for OEM s. Over the past few years, leading companies in engineering services outsourcing has ranged from various concepts such as detailing, design and product realization solutions in the aerospace, power generation, civil structures, oil and gas, transportation and other industrial products. Their GPD s allow them to offer value added and optimized solutions.