ENGINEERING

SERVICES

“Globalisation of engineering services-

the next frontier for India.”

By:-
• NIDHISHA MONGA
• NIKHILESH BIDWAI
• MOHD. AARIF KHAN
 Introduction
It is almost impossible to determine when engineering starts or ends.
From solutions in the particular field of engineering to the regulation
and standardization of the design process, engineering plays an
essential role.

Engineering :
The function of determining the integrity of material and services in
order to measure and maintain operational reliability, approve design
changes, and assure their conformance with established
specifications and standards.

Engineering Services :
Organizations primarily engaged in applying physical laws and
principles of engineering in the design, development, and utilization of
machines, materials, instruments, structures, processes, and
systems.
 GDP OF INDIA & SERVICES
CONTRIBUTION

SECTORS EMPLOYMENT GDP

CONTRIBUTION CONTRIBUTION

AGRICULTURAL 60% 28%

SERVICES 28% 54%

(15% is on engg.
services)

INDUSTRIAL 12% 18%

 Scope / Importance of Engineering
Services

• Engineering services is a growth market.

• Current spending on engineering services ($750 billion) is
projected to increase to $1.1 trillion by 2020.

• The market is highly fragmented by industry, with :

1. Automotive at 19%
2. Aerospace at 8%
3. Utilities at 3%
4. High-Tech/ Telecom is the
dominant and fastest growing sector,
with 30% of the market.

• While today only $10-15 billion of

engineering services is offshored, the
market is expected to grow
to $150 -225 billion by 2020.
• India's current revenue base in the offshored
engineering services market is about $1.5bn –
relatively small as compared to its information
technology and business process outsourcing
sectors.

• India is well-positioned to increase its market

share of engineering services offshoring from
12% to 30% by 2020.

• The potential engineering market in India

could exceed $40 billion by 2020.
IT is linked to the entire value chain
but engineering sits at the head of it

Sales &
Finance
Marketing

Product
IT Engineering
Strategy

Manufacturing Sourcing

Strong linkage

Tertiary linkage
Engineering landscape is evolving
more rapidly
Past: Extent of Engineering (1900s)

Dominant region for engineering activity

Emerging regions for engineering activity

Engineering – Present
Present: Extent of Engineering

Dominant region for engineering activity

Emerging regions for engineering activity

 The Future
Future: Extent of Engineering (2015)

Dominant region for engineering activity

Emerging regions for engineering activity

 So yes, it is a big opportunity
Market Potential for India
(2004 – 2020)

$40
Revenue Potential ($ Bn)

$35
Defense
Opportunity
$30

$25

$20

Commercial
$15 Opportunity

$10

$5

$0
2004 2006 2008 2010 2012 2014 2016 2018 2020
 TOP TWENTY ESO VENDORS

2007 RANK COMPANY 2007 RANK COMPANY

1 SATYAM 11 Mahindra Eng

2 QUEST 12 HCL
Technologies
3 eServ Perot 13 Hoyt
Engineering
4 Ranal 14 Infosys

5 Plexion 15 Tata group

6 Wipro 16 Hero Global

Design
7 EASi 17 Entegee

8 NeilSoft 18 Onward Tech

9 Eicher 19 Rolta

10 Geometric 20 Patni
 Where The Engineering Work
Is Coming From

Originator of ESO Percent Total

Work
US Engineering Firms 27.3 %

International Engineering 25.8 %

Firms
International Manufacturers 22.4 %

UK Engineering Firms 16.3 %

US Manufacturers 5.3 %

Japan Manufacturers 2.9 %

Where the Engineering Work
is Headed Offshore

ESO country of Percent of total

service origin
INDIA 95.9 %

CHINA 2.6 %

RUSSIAN & EASTERN 1.2 %

EUROPE

NIGERIA 0.1 %

VIETNAM 0.1 %

OTHERS 0.1 %
 Yes, India leads the pack for
engineering services, currently
Competitive Index of Countries –
Engineering Services
(Present)

5
Competitive Index

0
India China Mexico Russia Czech Poland Hungary Thailand Philippines Egypt Ukraine Bulgaria Brazil Vietnam Romania Turkey South
Republic Africa
 …but others are catching up
Competitive Index of Countries – Engineering Services
(2015)

6
Competitive Index*

0
China India Russia Mexico Thailand Czech Poland Philipp. Hungary Egypt Ukraine Bulgaria Brazil Romania South Vietnam Turkey
Republic Africa
 Various Engineering
Services

• Civil engineering services

• Architectural Engineering Services
• Mechanical engineering services
• Integrated engineering services
• Global engineering services
• Electrical engineering services
• Contract Engineering Services
• Design Engineering Services
• Electronics Engineering Services
• Structural Engineering Services
• Fabrication Engineering Services
ENGINEERING SERVICE
CUSTOMERS
- Daimler - Chrysler Nissan

- Navistar - Toyota

- Fiat - Seabird Aviation

- Bentley Visteon - Audi

- Ford - Honda

- Mazda - Volvo Construction

Equipment
 Indian Engineering
Services
• Indian Engineering Services are the Technical Services that meet the
technical and managerial functions of the Indian Government.
Government spending comprises more than 15 percent of India's GDP.

• Given the extent of tasks and functions managed by the public sector
this extends to a fairly broad segment of the economy covering the
Railroads, Military, Public works, Power, Telecommunications, etc.

• Like in most countries, the Government of

India recruits its civil servants and officials
on the basis of merit. The middle management
positions in the bureaucracy are filled through
competitive exams. Large number of people
take these exams competing for limited seats.
Some seats are Reserved in India for the
underprivileged sections of society.

• A combined competitive examination is

conducted by the UPSC; for recruitment
to the Indian Engineering Services (IES).
Dilip Chhabria – An Inspiration for
Many !!

Dilip Chhabria - A big name in Engineering Services

Industry , is a design guru and represents the design
face of Indian automobile industry.
Dilip Chhabria has many firsts to his credit since he
launched his venture „Dilip Chhabria Design Private
Limited‟, back in 1995.
A pioneer in providing Design and Prototyping
services to the Indian OEM industry, the company has
earned repute as a customised one-off solutions
provider to individual car and multi-utility vehicle
buyers.
Engineering Services offered by his
Company :

• Styling! Vehicles, Aviation and CAS

• Show car and prototype build.
• Customized and Armored vehicles Builds.
• Special purpose vehicles Builds.
• Bespoke Furniture.
Aston Martin Vanquish
OPPORTUNITIES

• There is a great opportunity in the global market for

offshore engineering services. It is not only a significant
revenue generator, but will also place India on the global
innovation map.

• Engineering services offshoring could facilitate creating

150,000 to 200,000 additional jobs, up to 1,000,000 with
multiplier effect. India needs to invest now to yield the
required number of engineers and management
professional having good knowledge of engineering
services by 2020.

• Geospatial technology and data will be required and play

an important role for development, especially in sectors
likes, airports, ports, highways, bridges, town planning,
municipal, environmental, utility distribution, etc.
• Both, conventional power generation and refining capacities
are expected to double in the next decade, in India.
Additionally, it is envisaged that almost 40,000 MW of power
generation capacity will be added through nuclear energy in
India. This is expected to result in investments of over US $
100 bn.

• The Indian Defence and Homeland Security sector has

emerged amongst the top spenders worldwide and is
expected to spend over US $ 100 Billion in the next 5
years.
• Engineering outsourcing Market from India to grow to
$ 40bn p.a by 2020.
CHALLENGES

• Technology is changing everyday, so you

have to change faster than the market.
• Customers are becoming more professional
and demanding.
• Attaining, training and retaining talent is
difficult.
• It requires high cost investment in training
and development.
• Engineering services mainly deals with B2B
customers and thus its difficult to perform.
• Engineering services need high skilled
labour.