India has established its name as one of the best destinations for IT Outsourcing by delivering eminent and pioneering services across different industry verticals to a global clientele. Furthermore, as recent trends go, the world is looking at India as an engineering knowledge hub, which implies that along with IT, Indian companies can mark a distinct niche for itself in another service stream currently referred to as ESO (Engineering Services Outsourcing).
In recent decades the ESO market has witnessed a gradual rise, but still the potential is unexplored. The ESO market in recent years has evolved to encompass a broad array of new product development, engineering consulting, and value-based engineering functions. If viewed from the global perspective, ESO spend is proportionally shifting from different mature global markets to emerging markets in India, and therefore it can be expected that the Indian vendors would be able to exhibit their accomplishments soon.
India – The Potential ESO Market
The ESO market has been segregated into two major types of verticals. The traditional ones encompass semiconductors, telecom, heavy machinery, electronics, construction, automotive and aerospace, while the emerging verticals subsume medical devices, industrial automation, infrastructure, energy and computing systems.
As per a recent survey, it has been shown that around $990 Billion are spent on ESO services every year, and only the services of approx. 50 – $55 Billion is currently being offshored. By 2020, it is expected that global expenditure on these services will reach around $1.4 Trillion, and the services of approx. $120 – 125 Billion would be outsourced, out of which India is expected to glean around 50% of the share. This would be a significant rise in the services being outsourced to India.
The Scope of ESO
Today, the scope of ESO has expanded much beyond usual R&D services and product design to include a broad spectrum of newer industrial services including New Product Induction, right from the conceptualization phase to the final product development & validation.
Among the emerging nations having the capability to take these outsourced projects, such as India, Russia and China, India has the biggest pool of the engineering talent (28%) when compared to Russia (11%) and China (10%). The five ESO sectors which have the highest global demand are Construction, Utilities, Telecom, Aerospace and Automotive. India is expected to be able to provide high value and reliable offshoring services to the global firms in these sectors in the coming future. Offshoring projects are also expected to rise, both in number and the revenue generated each year.
There is a plethora of benefits of outsourcing ESO projects to India apart from the access to the biggest talent pool. Low cost, high value & quality focused services, easy communication and English speaking capability are among the top ones of these.
Flatworld Solutions is one of the best providers of the offshore engineering services at highly affordable prices. It offers a broad array of specialized and tailored mechanical engineering services including CAD conversion & migration services, 3D modeling & rendering services, mechanical 3D product animation and much more. We aid our clients to gain an edge over their competitors by delivering immaculate services within shorter turnaround times. You can share your requirements or queries in the form of the comment in the below given box and our executives will contact you with the most ideal solutions and quotes.
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