Press release from Business Wire India
Source: Frost & Sullivan
Tuesday, September 07, 2010 01:42 PM IST (08:12 AM GMT)
Editors: General: Consumer interest; Business: Accounting & management consultancy services, Automotives, Business services, Media & entertainment; Automotive
40 Percent of Automotive Engineering Services to be outsourced to Service Providers by 2015, reaching USD 101.6 Million – says Frost & Sullivan
At GIL 2010: India, The Global Community of Growth, Innovation and Leadership
Mumbai, Maharashtra, India, Tuesday, September 07, 2010 — (Business Wire India) — Frost & Sullivan, recently concluded their 2nd annual flagship event GIL 2010: India – The Global Community of Growth, Innovation and Leadership, at The Leela Palace, Bangalore. The Congress, besides focusing on CEOs perspective on growth, had specific industry think tank sessions and several panel discussions, that were held parellely. The Automotive think tank focused on Opportunities in the Automotive Engineering Services Market.
Engineering services until recently had been aggregated either under Information Technology services (as Research and Development services) or under Information Technology Engineering Services – Business Process Outsourcing (as engineering BPO). However, the evolution of market demand and increasing maturity of the vendor landscape for engineering services has highlighted the need for examining this as a separate segment.
India with its natural competitive advantage is likely to play a huge role in various segments of the Engineering Services industry. The Indian engineering industry is rapidly growing as a major outsourcing hub with a compound average growth rate of more than 30 percent. Automotive, telecom and aerospace are the major verticals that spend heavily on outsourcing engineering services.
According to V.G. Ramakrishnan, Senior Director, Automotive and Transportation Practice, Frost & Sullivan, South Asia, Middle East and North Africa who presented the CEO 360 Degree Perspective on Opportunities Shaping in Automotive Engineering Services in India, “By 2015, the automotive industry will start to outsource 40 percent of its engineering activities to the engineering service providers. Nearly 15 percent of the total outsourced automotive engineering services were catered to by subsidiaries of Indian Original Equipment Manufacturers (OEMs). This is where India needs to concentrate and take advantage by developing domain expertise to cater to the requirements of the OEMS”.
Frost & Sullivan reported the Global Automotive Engineering Services market to be USD 210.0 Billion in 2009 and the Indian Automotive Engineering Services market at USD 423.0 Million in the same year. Business done in India, out of this, is about USD 74.4 Million. The market is expected to reach USD 101.6 Million by 2015 growing at a CAGR of 7.9 percent from 2010. Most companies in India have advanced capabilities and skill-sets, and have invested in technology to take advantage of this opportunity. The growth in engineering services signifies the need for global companies to expand their R&D centers beyond their home countries.
Global OEMs are increasing R&D spend to meet regulatory and customer demands in India. Cost arbitrage along with increasing skill-sets is a major driver in channelizing business to India.
Mr. Tarak Balaji, Director, Delphi Technical Centre, India, presented the keynote address on a Growth Success Story – Five Things That Indian Off-shoring Companies Need to Do to Retain Competitiveness. Mr. Prashant Kamat, CEO, Mahindra Engineering Services, presented a Growth Success Story on In-house / Captive Competency of Vehicle Manufacturers – A Threat to Engineering Service Providers.
This was followed by an Interactive – Roundtable Discussion on the Role of Engineering Services Companies in helping Indian OEMs go Global. Panelists on this session were Mr. Nagaraj Siddegowda, Senior Project Manager, Altair Engineering; Mr. Narayan Shenoy, General Manager, Consumer Electronics Engineering, Wipro Technologies; Dr. Prakash Kamath, General Manager, Head, Engine Development, Mahindra & Mahindra Ltd.; Dr. Rao Chalasani, Director, AVDC, General Motors Technical Centre; Mr. Subu D Subramanian, CEO and Managing Director, Defiance Technologies; and Dr. Venkat Srinivas, General Manager (PD), Design Validation – CAE/Testing, Ashok Leyland Ltd.
Frost & Sullivan, along with the members and partners and the Strategic Partnership Consortium – a comprehensive alliance of visionaries, innovators and leaders, are all engaged in sharing, inspiring and creating a continuous flow of new ideas and fresh perspectives, which leverage innovation as a resource to help shape a better future for the growth of attending companies.
Member companies and organizations include: IFS, Liveperson, BrighTalk, Lenos Software, Schneider Electric, SCIP (Society of Competitive Intelligence Professionals), Underwriters Laboratories Inc., Intel, Bulldog Solutions, Eloqua, and Global Spec, Inc. Through this cooperative effort, participants within the GIL community are taking monumental steps toward the development of a long-term growth strategy enabling them to effectively learn how to leverage innovation as a resource to help shape a better future for their companies and their careers.
For GIL 2010: India, HP was the Strategic Event Partner, 3M and DHL were the Event Partners. Delphi was the Industry Track Partner for the Automotive think tank. Wall Street Journal was the Official Newspaper Partner, Mint, the National Newspaper Partner and Outlook Business, the National Magazine Partner. Auto Monitor, Autocar Professional, Engineering Review, The Machinist and Machinist360.com supported the think thank as the media partners.
If you are interested to know more on the Automotive think tank or other insights shared at GIL 2010: India, then send an e-mail to Ravinder Kaur, Corporate Communications, at [email protected], with your full name, company name, title, telephone number, company e-mail address, company website and country.
About Frost & Sullivan:
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company’s Growth Partnership Service provides the CEO and the CEOs Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com
Ravinder Kaur, Corporate Communications – South Asia, Frost & Sullivan, +91 (44) 42044760/ +91 9940141714, [email protected]
Nimisha Iyer, Corporate Communications – South Asia, Middle East & North Africa, Frost & Sullivan, +91 (22) 40013404/ +91 9820050519, [email protected]
CONSUMER, CONSULTANCY SERVICES, AUTOMOTIVE, BUSINESS SERVICES, MEDIA, AUTOMOTIVE
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