Brand India engineering is making a headway, says Frost & Sullivan

With some part of each vehicle of the world having some touch of India, the ‘India as a brand in engineering’ is making headway, thanks to global original equipment manufactures (OEMs), who in a catch 22 situation are looking at low cost destinations like India as outsourcing hubs.

The Indian automotive engineering services outsourcing industry is expected to grow at a compounded annual growth rate of 32% (CAGR) by 2012-13. “The industry has generated revenues to the tune of $500-600 million last year and there is $2.2 billion potential outsourcing opportunity in the next two years,” said VG Ramakrishnan, director, automotive & transportation practice, Frost & Sullivan talking at the “Opportunities in the Automotive Engineering Services Market” seminar here.

He, however, added that there was a need at the industry association level to spin off automobile engineering services from IT sector, furnishing an example of Satyam Ventures, which is totally into automotive engineering services. (Read more..)


Source :Financial Express