Outsourced Engineering Services Driving Growth in Demand for Engineering Software
2/27/2008
According to the latest figures released by engineering and enterprise IT applications market research and analysis consultants, Cambashi, in 2007 the Indian market for engineering applications software grew 31% to US $186m (7.7 Bn INR). Cambashi expects growth to continue at similar rates to the end of the decade with the market growing to over US $400m (16.5 Bn INR) in 2010.
Following India’s rise as an outsourced services centre for software development, the ready availability of well trained engineers of all disciplines is now creating a new boom for engineering services. In some cases, Western headquartered companies have set up engineering centres. In other cases, local firms such as Tata are bidding for outsourced engineering contracts. These developments are driving demand for engineering software to make India one of the fastest growing markets worldwide.
All engineering disciplines involved
Today, most projects involve mechanical and civil engineering but highly skilled engineers in all disciplines are available and specialist design services of all types are already on offer.
While full product design services are offered, currently most projects are concerned with drafting and detailing of outline designs.
Today, engineering software is often provided by the outsourcing clients but these shifts in the types of project are likely to increase the local purchase of software. Cambashi predicts that Indian growth will outpace the region’s growth for the rest of the decade.
Allan Behrens, Business Development Director at Cambashi, comments: “At the recent COFES India conference I realized the vast diversity of skills that India offers. With a growing middle class we recognise that India’s contribution to the worldwide engineering applications software community will be a major factor in the next few years.” Indian engineering software development
Nearly all the global engineering software providers develop some parts of their portfolio in India. Some of these operations come from acquisitions, others were started from scratch. The best-known Indian engineering applications software developer is GSSL. They have a joint venture with Dassault Systèmes, some products of their own, and provide outsourced software development services to most major global providers.
There is a long history of Indian surveying and map production, going back to the British East India Company – The Survey of India is the oldest scientific department of the Government of India, dating back to 1767. Hence there is a well-developed Indian geospatial community, offering services to both global and Indian clients. As well as spatial encoding, Indian developers provide many low-cost or add-on tools that turn GIS technology into geospatial applications. Registered in England and Wales No. 1360554. Registered office as above. VAT No. 393 1001 82
Indian developers have been active in structural engineering applications since the early 1980’s. Bentley Systems’ purchase of STAAD from REI shows that global providers recognize that these applications are world class.
Indian companies acquiring overseas
There is a recent trend for Indian companies to acquire Western companies in manufacturing areas such as steel and automotive. Cambashi also sees Indian companies buying players in the global engineering applications market. Infosys acquired geospatial specialist Dataview and Tata Industries acquired mechanical engineering specialist INCAT. Cambashi believe these are just two examples indicating the beginning of a trend.
About Cambashi
Cambashi, based in Cambridge, provides independent research and analysis of the business reasons to use of IT in industry world-wide. Its specialist fields include Engineering and Enterprise applications and the infrastructure to enable industrial firms to use IT effectively. Cambashi publishes market size estimates in the Engineering Applications Market Observatory. Its clients vary in size from small to large and include most of the leading software vendors and many pioneering IT users. Cambashi is a member of CATN, an international association of consultants.
Neil McLeod McLeod Marketing The Limes Tetbury Gloucestershire GL8 8EF United Kingdom Tel: +44 (0)1666 504293
email: neilmcleod@btopenworld.com
The information in this press release is from a wide variety of sources that represent the best information available to Cambashi Limited. This report includes our interpretation of information in the public domain or released by responsible officers in relevant organisations. Some information is from sources we cannot verify. We survey judgement samples, and results are not statistically significant unless so stated. Cambashi Limited cannot guarantee that the report is accurate or complete. Information changes with time. The analysis, opinions and estimates in this report reflect our judgements as of writing but are subject to change without notice. Cambashi Limited shall not be liable for any loss or injury resulting from use of this information. All trademarks are the property of their respective owners. Cambashi Limited may have a consulting relationship with a company being reported on. It is not an offer to sell or a solicitation of an offer to buy any securities. Cambashi Limited, its staff, their families and associates may or may not have a position in or with respect to any securities mentioned herein.
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