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Top Engineering activities delivered by Indian ER&D Engineering Service Providers (ESPs)
Top Engineering activities delivered by Indian ER&D Engineering Service Providers (ESPs)

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Insights in this blog are from NASSCOM-Deloitte Global Engineering R&D Pulse Survey, which spanned a survey of enterprises across North American, EMEA, and APAC regions, with participation from over 100 end user enterprises from eight key verticals across 19 countries.

 

In addition to GCCs, Indian engineering R&D landscape is also home to multiple engineering service providers (ESPs), working seamlessly to deliver differentiated services to their global customers across locations. Twelve of the top 50 ESPs are headquartered in India and 44 of top 50 service providers have Engineering R&D operations in India.

As per the NASSCOM-Deloitte Global Engineering R&D Pulse Survey, 78% of the companies surveyed provided positive feedback on the performance of their India ESPs. Nearly 80% of them are planning to ramp-up or maintain their ER&D budget allocated to ESPs in the coming year. Companies prefer Indian ESPs due to the availability of scale in the ecosystem (academia, peer presence, start-ups).

 

Top ER&D activities delivered from India ESPs

Pulse 8

 

  • Software design and engineering’ have been delivered by India ESPs due to its strength in software development, product management, and mechanical analysis, coupled with the presence a robust start-up ecosystem, an enormous talent pool, cost competitiveness, globally the second highest English-speaking population and state of- the-art technologies. India is also a top destination for outsourcing activities such as software design, and engineering and testing, and validation.
  • Apart from core activities, ESPs are progressively being used for additional activities that require scale, velocity, and flexibility and companies are now driving activities such as ‘research and advanced engineering’, ‘driving innovation out of the centre,’ and ‘product/technology strategy’ through their India ESPs.
Pulse 9

 

Complete independence and ownership are the biggest improvement areas for India ESPs as per the survey.

  • Companies expect their India ESPs to own a larger part of the overall project value chain and efficiently own and deliver products and solutions outsourced to them.
  • There is also a need to ramp up the present R&D infrastructure for product testing / prototyping.
  • High attrition across sectors in the Indian market is another major challenge for knowledge retention within India ESPs. However, ESPs are addressing this issue through various partnerships and skilling initiatives.

Indian ESPs are a crucial stakeholder for the global areas of investments, such as building a technology ecosystem, developing key skills and talent, and improving the ER&D productivity and performance by digitalising the end-to-end product development lifecycle. The future of the engineering R&D sector looks promising right now. India is poised to be at the forefront of this revolution, playing a key role in shaping the overall R&D strategy of global companies.

 

Read more insights in the report – “NASSCOM-Deloitte Global Engineering R&D Pulse Survey 2022”

NASSCOM Community https://community.nasscom.in/communities/engineering-research-design/nasscom-deloitte-global-engineering-rd-pulse-survey-2022

NASSCOM Websitehttps://nasscom.in/knowledge-center/publications/nasscom-deloitte-global-engineering-rd-pulse-survey-2022


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Vandhna Babu
Principal Analyst - Research

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