30 Years – India’s Strategy Boutique
30 Years – India’s Strategy Boutique

Automotive

Mapping the Engineering Services Outsourcing Industry in India

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Client Challenge

The client, a leading multinational diesel engine manufacturer with over 100 years of experience, supplies engines for a wide range of applications, including tractors, seagoing vessels, construction equipment, agricultural equipment, and generator sets. To reduce product R&D costs, the client sought to leverage its presence in India by gaining a comprehensive understanding of the Indian Engineering Services Outsourcing (ESO) landscape. Specifically, the client wanted insights into:

  • The overall engineering service outsourcing industry in India
  • Detailed mapping of engineering processes in embedded software design, hardware design, etc.
  • Major ESO companies, including their size (revenue, employees), service range, strengths, and major global clients

Our Approach

To develop an assessment of the engineering service outsourcing industry in India, UC adopted a structured approach:

  1. Research and Analysis:
    • Conducted primary and secondary research to understand the outsourcing landscape in India, focusing on:
      • Engineering service outsourcing and its various segments
      • The global Engineering and R&D market, the outsourced Engineering and R&D market in FY16 and FY20, and the split between captive R&D partners and outsourcing partners
      • India’s contribution to the global Engineering and R&D market in FY16 and projections for FY20, identifying key growth drivers
  1. Industry Mapping:
    • Analysed initiatives undertaken by large MNCs concerning the outsourcing of operations
    • Examined competitive moves within the diesel engine segment related to outsourcing R&D facilities
  2. Company Profiling:
    • Identified leading Indian players in the engineering services outsourcing domain, detailing their key capabilities, M&A activities, revenue, number of employees, and business focus
    • Assessed major ESO companies’ information, including company size (revenue, employees), engineering service range, strengths, and major global clients

Our Impact

The client received a detailed and comprehensive snapshot of the ESO market in India, including:

  • An overview of the Indian ESO landscape
  • A mapping of engineering processes in embedded software design, hardware design, etc.
  • Profiles of key ESO players in India, including their global clients in the automotive segment

This strategic insight enabled the client to make informed decisions about leveraging India’s engineering services outsourcing capabilities to reduce R&D costs effectively and enhance their competitive edge in the global market.