Engineering services market may touch $45 billion

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Bangalore: The National Association of Software and Service Companies (Nasscom) in association with management consultancy Booz & Company, released on May 21 the findings of the study “Global engineering research and development: accelerating innovation with Indian engineering” at the Nasscom engineering services conclave in Bangalore.
Nasscom forecasts that global engineering research and  development (ER&D) spending to total $1.4 trillion in 2020, from $1 trillion in 2009. The study noted that the Indian ER&D market had grown at a compounded rate of 40 percent between 2004 and 2009 – from $1.2 billion to $8.3 billion. It forecast that the Indian ER&D services market would be about $40-45 billion by 2020, of which $4-6 billion would be in the domestic market. The study predicted that infrastructure, aerospace and energy segments would account for about 80 percent of the domestic market.
Som Mittal, president, of Nasscom, said India was at “the epicenter of the global ER&D market,” because India offered a “compelling value proposition” that was based on a large and diverse engineering base and flexible business models.
Vikas Sehgal, partner, of Booz & Company, said the industry could potentially employ more than five million persons when revenues reached $45 billion in 2020.

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