Mumbai: India has become the preferred destination for engineering outsourcing. The engineering R&D business outsourced to India in 2014 for heavy engineering was $1.2 billion, which is 40 per cent of the total value of ER&D outsourced globally, whilst for aerospace, it was $0.9 billion. For the medical industry, engineering R&D outsourced to India was $0.7 billion which is expected to grow to $1.9 billion by 2020.
Speaking to this newspaper about India’s high value exports, Cyient founder and executive chairman B.V.R. Mohan Reddy said that in the case of the consumer industry, India addressed $1.3 billion of engineering R&D, and this has the potential to grow to $2.3 billion by 2020.
Cyient Ltd. is one of the largest independent exporters of high-value R&D services from India with over 12,500 employees across 38 locations worldwide. “The potential for engineering exports is increasing as Indian corporates are coming up with new business models, like risk-rewards,” said Mr Reddy.
The future trend will be to outsource like Boeing did for its Dreamliner aircraft, where 30 per cent of its components come from outside of the US, while Japan worked on wings, the UK on landing gears, Sweden on cargo access doors, etc.
