The National Association of Software and Services Companies (NASSCOM) has showcased the findings of the its report on the engineering and R&D sector titled – Impact of Digital on ER&D. The report was jointly published by NASSCOM, Strategy& and PWC, and was launched on the sidelines of the 10th edition of the Design and Engineering Summit 2018, held in Bangalore.
The report highlights that the Global ER&D spends continue to be on an upward trajectory and are projected to touch US $2 trillion globally by 2022, out of which 38% will be contributed by top 1000 corporates. There are six major trends that have been identified that are currently driving digital ER&D across multiple sectors globally. These are Internet of Things, Big Data Analytics, Artificial Intelligence & Machine Learning, Cybersecurity, Advanced Robotics, Mobile Applications and Digital Reality.
With the Indian ER&D industry taking huge strides over the past and now focused on digital services to sustain its leadership position, Indian service providers and GICs are stepping up the value ladder in capturing global opportunities. Adapting to changing customer needs, business models, organizational structures and talent. Outsourcers have a positive outlook for offshoring ER&D services work from India across vertical, with the overall market in India is expected to grow to ~42Bn USD by FY2022. The key growth drivers for the industry are going to be India’s capabilities in the Automotive and Construction & Heavy Engineering (C&HE) market, which is being accentuated by local talent and rising domestic demand.
Expressing his thoughts at the occasion, KS Viswanathan, Vice President, Industry Initiatives, NASSCOM, said, “India has always displayed a very dynamic and rapidly growing technology ecosystem. As digital technologies reshape businesses, this industry is constantly innovating to emerge as the hub for digital solutions. The industry is at the optimum position with the right talent, expertise and global market access and huge potential to grow. With a clear-cut focus on these newly identified technologies, we hope to witness a systematic approach in reaching the projected targets in the years ahead.”
From a vertical perspective, Indian firms are investing in automotive digital ER&D across autonomous, connected, shared & electric cars, and the digital spend in the sector is set to increase to 30-40% by 2025. Additionally, Indian firms are also investing in C&HE digital ER&D across IoT, telematics and autonomous vehicles.
