Presently around 3.5 lakhs engineering students come out from engineering colleges.But very few are employable. There is a wide gap between what industry expect and what can a fresh engineer can offer. This gap is filled by the Industry by conducting training at there own cost.
It is estimated that an average engineering graduate requires 14-16 weeks of training, with cost running as high as Rs 2,50,000 per person.
IT/ITES industry alone requires 16 ,00,000 engineers in the current year.
Wednesday, March 14, 2007
Monday, March 5, 2007
Design opportunity in global world
Engineering outsourcing is next big business opportunity in India.
World market
The worldwide market for outsourced engineering design services is expected to touch US$ 123.9 billion in 2006. The US engineering BPO market alone is expected to reach US$ 63.7 billion by 2006.
Indian market
The value of work currently undertaken by India-based vendors in this space is around US$ 400-500 million, indicating the untapped opportunity that still exists for the companies playing in this market.
Major area of Outsourcing
Broadly speaking, the key services being provided by Indian outsourcing companies are in the areas of electronic and mechanical Product Design (engineering analysis and design, electronics and embedded software, knowledge-based engineering, PLM solutions); Plant design/process engineering (detailed design, construction and commissioning support); plant automation services (control system integration, production optimization, manufacturing execution systems) and enterprise Asset Management (TPM solutions, product implementation and OEM solutions).
Automotive design is stated to represent the largest chunk of this market, accounting for around 65-70 percent of the revenues generated through outsourced engineering services. Automotive companies invest around 3-5 percent of their annual revenues in R&D, which in turn is centered around engineering design. The aerospace segment is the other high potential vertical, contributing around 15-16 percent of the total revenues of the outsourced engineering services pie, with electric/electronic machinery design pitching with 10-12 percent. Other verticals that are outsourcing their engineering services include utilities, equipment manufacturing and pharmaceutical companies.
World market
The worldwide market for outsourced engineering design services is expected to touch US$ 123.9 billion in 2006. The US engineering BPO market alone is expected to reach US$ 63.7 billion by 2006.
Indian market
The value of work currently undertaken by India-based vendors in this space is around US$ 400-500 million, indicating the untapped opportunity that still exists for the companies playing in this market.
Major area of Outsourcing
Broadly speaking, the key services being provided by Indian outsourcing companies are in the areas of electronic and mechanical Product Design (engineering analysis and design, electronics and embedded software, knowledge-based engineering, PLM solutions); Plant design/process engineering (detailed design, construction and commissioning support); plant automation services (control system integration, production optimization, manufacturing execution systems) and enterprise Asset Management (TPM solutions, product implementation and OEM solutions).
Automotive design is stated to represent the largest chunk of this market, accounting for around 65-70 percent of the revenues generated through outsourced engineering services. Automotive companies invest around 3-5 percent of their annual revenues in R&D, which in turn is centered around engineering design. The aerospace segment is the other high potential vertical, contributing around 15-16 percent of the total revenues of the outsourced engineering services pie, with electric/electronic machinery design pitching with 10-12 percent. Other verticals that are outsourcing their engineering services include utilities, equipment manufacturing and pharmaceutical companies.
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