<div>The next phase of development of IT-BPO industry will be led by innovation and the industry will need to target new growth engines. As a result, despite a slowdown in the world economy, Indian engineering service providers (ESPs) will witness continued growth, focussed on innovation, says a Nasscom report. Increased digitisation and demand for mobility will drive increased engineering and R&D (ER&D) spends in several sectors. Meanwhile, increased patent filings from India indicate a rise in innovation activity. At 18 per cent, India has the second highest growth rate of patents after China (21 per cent).</div><div> </div><div>Also, compared to other offshore services like IT and BPO, ER&D services are much more conducive to vertical specialisation. However, in case of India, building scale while ensuring utilisation remains a challenge. Building deep domain expertise in specific verticals help build credibility and transition to high value ER&D services.</div><div><br />"ER&D is strategic to India and has the potential to bring a steep change in the Indian economy. It is important for major stakeholders of the industry to take a focused and clear approach to sustain India’s competitiveness in the ER&D services industry." says Ravi Pandit, chairman, Nasscom engineering forum, Pune and chairman & group CEO, KPIT Cummins. </div><div><img width="500" vspace="6" hspace="6" height="225" src="/image/image_gallery?uuid=38ea1886-a1ac-4230-934a-33518911321c&groupId=222922&t=1349955234246" alt="" style="font-size: medium; line-height: normal; " /></div><div>This and many other interesting perspectives were discussed at the Nasscom roundtable on the global ER&D landscape presided over by Ravi Pandit, Sangeeta Gupta, senior vice-president, Nasscom, and Suvojoy Sengupta, partner, Booz & Company and co-head of the India practice. The group also shared the key findings of the Nasscom-Booz & Co.Global ER&D report 2012.<br /><br /><div><strong>Key Findings<br /></strong></div><div> </div><div>• ER&D exports at $10.2 billion</div><div> </div><div>• CAGR of ~10.5 per cent over last 4 years</div><div> </div><div>• 15 per cent share in Indian IT-BPO exports</div><div> </div><div>• 400+ players with >200,000 engineers </div><div> </div><div>• 50:50 exports of service providers and GICs</div><div> </div><div>• 45:55 exports from Embedded and Engineering services</div><div> </div><div>• 90 per cent exports from North America and Europe</div></div><div> </div><div>According to the report, despite the turbulent headwinds, global ER&D spend surpassed $1.3 trillion in 2011 and is expected to $1.6 trillion by 2020. This growth was largely driven by strong recovery in corporate ER&D post 2009, reaching $541 billion in 2011. The Asiatic region is expected to contribute approximately 45 per cent of the global ER&D spends by 2020. The key verticals with the maximum share in this ER&D spend will be automotive, consumer electronics and telecom surpassing semi-conductors, computing systems, and machinery. The report also identified the themes that are driving the ER&D spends: drive towards efficiency, product localisation & innovation, mobility and digitisation.</div><div> </div>
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