Engineering and Design

Outsourcing
Vinu D. fk-3044
Karthik R. fk-3149
Sunil C. Sunny fk-3054
Jeffin Joseph fk-3035
Benefits of Outsourcing

Faster time to market the product or machine.

Not having enough CAD licenses

Reduced cost of product or machine by minimizing the engineering

cost

Core Engineering Team of the company can focus on Technology

and the other activities can be outsourced less critical work to
Engineering Service Company
Benefits of Outsourcing
Engineering Services Company can work as an extended design
office

Hiring of Engineering Resource for shorter duration can be avoided

Difficulty in hiring suitable expertise in a short span of time

Hiring expertise may be expensive

Key points in Engineering and Design Outsourcing
Speed of Deployment: Outsourcing can be an immediate solution for hot projects
to kick off the project within a month. Outsourced engineering services afford a
quicker time to market and lower overall costs.

Focus: Outsourcing the project help you to focus on the Project requirements,
Critical activities and deadlines. Otherwise engineers get disturbed with multiple
projects and doing maintenance engineering.

Knowledge Transfer: Engineering Services Companies follow the well- defined

process and do documentation on training to ensure attrition not impact the
existing cusstomers
In India, the Engineering Services are offered by four different categories of
companies:

1. IT Companies, which also offer Engineering Services

2. Manufacturing companies, which offer Engineering Services

3. Large MNCs who have their own captives in India

4. Third party vendors, plain Engineering Service Provider

First category of the company includes TCS,

● Wipro
● Infosys
● Mahindra Satyam
● iGate
● KPIT
● Accenture
● Cognizant
● Capgemini, etc.
The second category includes

● Tata Technologies
● Tata Autocomp
● Mahindra Engineering Services
● L&T
● Samtel
● Hero Group
● TVS Group
● Bajaj Group
● Ashok Leyland Group,
● Eicher Group
The third category includes such as

● GE
● Genpact
● Boeing
● Airbus
● Rolls Royce
● Scecma
● Honeywell
● EDAG
● Emerson
● Whirlpool
● Ford
● Caterpillar
The fourth category includes companies such as

● Cyient
● QUEST Global
● Geometric Software
● Onward Technologies
● Symphony
● Ashley
● Defiance
● Automotive Robotics
● Plexion Technologies
● AxisCades
Types of Services offered
1. Professional Outsourcing. Professional Outsourcing includes accounting,
legal, purchasing, information technology (IT), IT or administrative support
and other specialized services. ...
2. IT Outsourcing. …
3. Multisourcing. …
4. Manufacturer Outsourcing. …
5. Process-Specific Outsourcing. …
6. BPO. …
7. Project Outsourcing. …
8. Offshore Outsourcing.
 Statistics for Indian Scenario
● USD 12.4 billion ER&D (Engineering, Research and Design) export revenue
estimated from India in FY 2014
● USD 37-45 billion ER&D revenues from India – NASSCOM 2020 vision
● By 2030, India’s labour supply will reach 630 million from 470 million which is
today. This will make India the single-largest source of incremental labour
supply throughout the globe. Since we produce a higher number of science
and engineering graduates than nations like the US, we could capture a
greater global opportunity in the field of technology and other knowledge-
intensive areas.
At present, India accounts for 28 percent of all of the available ESO and BPO
talent in low-cost countries. The next largest sources of low-cost supply, Russia
and China, contribute only 11% and 10%, respectively.

India has the potential to control 40% of the global market for offshored
engineering services by 2020, that number could be US$ 50-60 Billion of the
expected US$ 125-150 Billion market.
Strategies for Success
● Build the “Engineered & Manufactured in India” brand
● Build domain expertise through symbiotic relationships with experts
● Focus on infrastructure creation
● Undertake initiatives to improve workforce
● Align government policy and incentives
Thank You