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ADVANTAGE INDIA: Gateway to Global Engineering R&D and Innovation

October 6, 2021 6611 0 Engineering Research & Design

ADVANTAGE INDIA: Gateway to Global Engineering R&D and Innovation

In the last two decades, great strides have been made in the Indian Engineering R&D services sector, and it is expected to reach USD 63 billion by 2025, up from USD 31 billion in 2019. India's current share of the global Engineering R&D outsourcing market is 30 percent and is expected to reach 50 percent within a decade. In an era of rapidly accelerating digitization and technology transformation, India is uniquely positioned to tap into this opportunity and support global MNCs with their digital transformation efforts. India is today a home to 1300+ ER&D GCCs across industry verticals operating at a scale which makes them amongst the largest technology hubs for the parent organization. India has emerged as a global powerhouse for Engineering R&D and is steadfastly committed to ushering future growth and innovation for global enterprises. Across sectors and technologies, India provides differentiated Engineering R&D services that have global enterprises in the context of driving revenue growth, operational excellence, competitive differentiation, product innovation and regulatory compliance. Over the years, Indian ER&D has evolved from providing engineering support to end to end ownership of engineering and product development initiatives. The India ER&D success story has been made possible by its large qualified technology and digital talent pool, a progressive and vibrant start-up and university ecosystem, strong focus on innovation and service delivery . This report, "Advantage India: Gateway to Global Engineering R&D and Innovation," is a testimony to the achievements and value propositions of the Indian Engineering R&D ecosystem that has led to India becoming a destination of choice for Engineering R&D. The report highlights stories of innovation, talent excellence , service delivery excellence, resilience from the Indian Engineering R&D players.

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Key highlights

  1. India as a destination of choice for global ER&D enterprises – The key pillars and value propositions that fuel India's attractiveness as the destination of choice include the ability to drive strategic business impact, a strong focus on innovation, a large and diverse talent pool, and focus on differentiated service delivery.
  1. Indian Engineering R&D players play a crucial role in driving the digital strategy for global enterprises – The market size of Engineering R&D GCCs in India is expected to reach USD 19.75 billion in 2021. Engineering Service Providers (ESPs) also form a vital cog of the overall Engineering R&D landscape. These enterprises have moved ahead in the value chain and are taking end-to-end ownership of products/solutions designed both for Indian and global markets.
  1. Unmatched talent - India's young skilled talent is unmatched by any other country. India has one of the largest Engineering R&D talent pools in the world to address the scalability needs of global enterprises. Thousands of engineers are engaged in India's Engineering R&D sector across various mechanical, embedded, and digital domains. Apart from the specialized talent skilled in some of the high-growth technology areas, a culturally diverse workforce is an inherent attribute of the talent available in India.
  1. Indian Engineering R&D ecosystem is at the forefront of innovation - The robust Indian Engineering R&D ecosystem, with a strong focus on collaboration, has truly nurtured the culture of innovation, which has placed India as a global hub for innovation and technology. GCCs and ESPs have invested in several initiatives and formulated various policies to sustain and drive the culture of innovation.
  1. Progressive initiatives launched by the Indian government such as Digital India, Make in India, Skill India, Start-up India, Stand-up India, and Atmanirbhar Bharat, and infrastructural investments such as National Infrastructure Pipeline (NIP) and implementation of GST to strengthen the business ecosystem and improve the country's attractiveness and business-friendliness quotient. In addition, India has undertaken substantial steps to tackle climate change and build a sustainable future by exploring and adopting green and clean energy sources, accelerating electric mobility adoption, and undertaking blue-green infrastructural reforms.

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