“Indian ESO To Touch $50 Billion By 2020”
In the November 18 issue of The Economic Times, Booz & Company Partner Vikas Sehgal (India/North America) said cost arbitrage and availability of skilled professionals in India is driving more customers to increase offshoring of engineering services. “Besides semiconductor and telecom, we expect consumer electronics, automobile and aerospace to be pulling their own ground by 2020,” said Sehgal in an address to the National Association of Software and Services Companies (NASSCOM) Global Engineering Summit in Mumbai. As part of the Summit, Booz & Company and NASSCOM stated in a joint study that the Indian engineering services outsourcing (ESO) industry will achieve $50 billion in revenues by 2020, and generate employment for 25-to-30 million professionals for delivering these services. Currently, India exports engineering services worth $7 billion to $9 billion annually, according to the report, with half the ESO revenues by 2015 to come from the U.S., Europe contributing 40 percent, and the rest from Japan.