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New Drivers of Engineering Outsourcing

New Drivers of Engineering Outsourcing

The executive who ran Hewlett Packard’s India product development operation was recently interviewed by Indian media about his take on the current state of Indian R&D outsourcing. Here are key takeaways from his interview.

What started earlier as engineering outsourcing for cost reasons has changed.

  • Customers are realizing that growth has  now shifted to emerging markets.
  • Globally, product life cycles are becoming shorter, hence time to market is short. So its no more about cost but adding that additional value to our customers across the segments.
  • What has also changed is the fact that customers are talking about designing all the way up than just components.

” The next phase of growth will be design-led manufacturing” he says.

Nasscom, the trade association he heads up, projects that India’s engineering R&D services market will approach $40 billion by the year 2020.

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