With automakers Renault, Volkswagen and Harley Davidson planning to outsource their complex design engineering projects to India, the engineering services outsourcing industry is set to clock USD 55 billion in revenues by 2020.

Traditionally, aviation and defense companies, such as Airbus, Boeing and Bombardier have leveraged Indian suppliers, including TCS, Mahindra Satyam, Infosys and QuEST Global, for outsourcing of design services, making it around USD 7 billion to USD 9 billion businesses for India.

The new entrants want to reduce their costs by up to 30% to 40% as well as shorten their lengthy design cycles.

Service companies have already started diversifying to take advantage of these opportunities.

Several automakers are also reportedly seeking to outsource projects for niche capabilities.

Mr Dataram Mishra, an aviation and defense expert who founded engineering design firm Cades Digitech said that "New partnerships are also being formed on new technologies, such as noise and emission reduction.”

(Sourced from Exim News Service)