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NASSCOM-Deloitte “The Future Growth Sectors in Digital Engineering”

September 14, 2022 2489 2 Engineering Research & Design

NASSCOM-Deloitte “The Future Growth Sectors in Digital Engineering”

In the recent years, digital platforms and tools have been recasting relationships between organizations, customers, workers, and employers. 'Digital transformation' has dramatically become a means to boost growth and competitiveness. To thrive in a post-COVID-19 world and ensure long-term success, businesses have recognized that their workforce and processes must be robust and adaptive of emerging technologies. The NASSCOM-Deloitte “The Future Growth Sectors in Digital Engineering” report highlights the role of Digital Engineering in the Engineering R&D sector, which is slowly becoming the lead player over traditional engineering. In this report, ‘Digital Engineering (DE)' is defined as something that builds smart, connected, and intelligent products with the aim to elevate customer centricity and embrace the concept of device-as-a-service by using digital technology as the backbone. Our research in the report indicates the ongoing evolution of DE in India and its deployment specifically in the context of four upcoming sectors: Banking, Financial Services and Insurance (BFSI), Healthcare, Consumer Packaged Goods (CPG), and Retail.

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Key Findings

  1. Growth of Digital Engineering
  • Digital Engineering has been growing across all sectors and has shown distinct growth specifically in Banking, Financial Services and Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, and Health care. All these sectors have one aspect in common, i.e., they use DE creatively in both their engineering operations and as part of their final products/solutions.
  • India has stepped up as a leading destination for DE. The share of DE in overall ER&D revenue in India continues to be in the range 28-30% as on FY22.
  1. Enablers of proliferation for DE
    • Availability of talent
    • Rising quality of talent
    • Ecosystem collaboration across startups, fintech, and academia
    • Growing support from the government institutions
  1. Use cases across the 4 chosen verticals
    • BFSI – Intelligent middleware, Next-gen banking, Digital marketplace, Hardware in BFSI
    • Healthcare – Medical manufacturing, Hospitals of the future, Connected health
    • CPG - Performance optimization, Industry 4.0, Customer experience and brand recognition
    • x`Retail – Smart stores, Integrated business planning
  2. Challenges to future growth of Digital Engineering in India
    • Finding the right talent
    • Data protection and privacy
    • Patents and IP protection
    • Digital infrastructure
    • Policy and regulatory gaps
  3. Recommendations for promoting DE growth
    • Connect both hardware and software to take a product to market
    • Utilise technical skills considering functional/industry knowledge
    • Develop workforce as well as the physical work environment
    • Make use of domain fungibility when developing solutions

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