ENGINEERING SERVICES

By:-• NIDHISHA MONGA• NIKHILESH BIDWAI• MOHD. AARIF KHAN

“Globalisation of engineering services-the next frontier for India.”

IntroductionIt 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 EMPLOYMENTCONTRIBUTION

GDPCONTRIBUTION

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

FinanceSales & Marketing

Product Strategy

Sourcing

IT

Manufacturing

Engineering

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 opportunityMarket Potential for India

(2004 – 2020)R

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2004 2006 2008 2010 2012 2014 2016 2018 2020

CommercialOpportunity

DefenseOpportunity

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 Work

Percent Total

US Engineering Firms 27.3 %

International Engineering Firms 25.8 %

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 service origin

Percent of total

INDIA 95.9 %

CHINA 2.6 %

RUSSIAN & EASTERN EUROPE

1.2 %

NIGERIA 0.1 %

VIETNAM 0.1 %

OTHERS 0.1 %

Yes, India leads the pack for engineering services, currently

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India China Mexico Russia CzechRepublic

Poland Hungary Thailand Philippines Egypt Ukraine Bulgaria Brazil Vietnam Romania Turkey SouthAfrica

Competitive Index of Countries – Engineering Services

(Present)

Com

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…but others are catching up Competitive Index of Countries – Engineering Services

(2015)

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China India Russia Mexico Thailand CzechRepublic

Poland Philipp. Hungary Egypt Ukraine Bulgaria Brazil Romania SouthAfrica

Vietnam Turkey

Com

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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.