Engineering Services

Outsourcing
Design
Tool design
Component/Assy design
System design
Structural design

Methodizing
Quality
Collection of data
Work Supporting Engineering
Process optimization
Lean Manufacturing
Supply chain
Stores management

PLM support
ERP support

 Global R & D industry: $1.1 trillion per year, it is

less than 2% of world economy.
Expected to increase $ 1.4 trillion by 2020.
Engineering services less than 10% of total
market share is being outsourced currently.
Vendors have the capability to double this figure.
Roughly 30% of international companies have
outsourced aspects of their new product
development.
All of these figures are expected to see significant
growth within the next few years.

 several factors were cause for concern when companies

considered ESO.
The largest concerns include turnaround time, quality and trust.
ESO vendor can be your competitor also in near future, if he
learned from you. E.g. TAAL, Alfa Tocol, Kalyani, Elastomer etc
have become the competitors of HAL.
ESO involves a higher level of functionality within a company and
is strategic to a companys value proposition, as it drives
innovation.
Due to this, companies tend to keep engineering services on-site
and leverage outsourced services for lower-level functions, such
as finance, accounting and manufacturing
However, because of the economic climate and cost-saving
potential, many companies can no longer justify keeping their
engineering services in-house.

 Another primary concern with ESO is the

perceived slow turnaround time.
In todays market there is ever-increasing demand
for faster delivery of products and services.
Due to technology advancements significantly
decreasing product lifecycles, clients are
increasingly demanding faster delivery of services
to obtain a competitive advantage over rivals.
ESO vendors have realized this, and are now able
to deliver their engineering services as fast as, or
faster than, companies would be able to internally.

 The final cause for hesitation is quality concerns.

In the past, firms would hesitate to outsource engineering services due
to the inferior product that outsourcing returned;
however, ESO vendors invested in increased quality awareness to
produce a quality outcome, and now firms that leverage ESO are able to
obtain high-quality services.
While ESOs greatest weaknesses in the past have become strengths,
the potential for additional cost savings remains.
Recent growth is partly due to the economic hardships many companies
face.
Perhaps the most significant push for companies to outsource their
engineering services remains the cost reduction aspect outsourcing
provides.
Outsourcing engineering services allows companies to get the most out
of tighter budgets and increase concentration on more pressing
matters, such as executive management decisions.

 Of the $1.1 trillion R&D market, less than $100 billion is currently
offshored as a service.
Major offshore locations include Mexico, Eastern Europe, China and
India, with India consisting of approximately $13 billion (includes
captive operations), or 10% to 13% of the offshored market.
By 2020, offshored engineering services is expected to grow to more
than $200 billion, while Indias share is expected to increase to $45
billion to $50 billion.
Indias largest asset in ESO growth potential lies within its people. India
has the largest amount of engineering graduates with the appropriate
skillsets compared to all other emerging, low-cost countries for ESO;
however, India lacks the infrastructure needed to support the
increasing demand.
Among Indian ESO vendors, HCL leads the group with the highest
revenue and largest percent of total revenue.

 The Engineering Services Outsourcing market is expected to see

significant growth during the next 10 years.
The primary driver for outsourcing engineering services is cost
reduction benefits as macroeconomic headwinds cause budget
austerity.
To capture the growing market demand, offshore competitors
have emerged as strong players, particularly in India.
With modern technology, offshore ESO vendors provide services
of equal or better quality in a timely fashion.
They do so while offering lower prices than onshore outsourcing
options, stemming from lower wage rates in low-cost countries.
HCL has emerged as the leading IOP ESO provider, committed to
capturing the growing market and embedding ESO into its
company strategy.

 Engineering Services Outsourcing (ESO) industry is at the beginning

stages of a growth trajectory.
We believe ESO vendors, particularly in India, are positioned to capture a
larger share of the market due to the alignment of their current
capabilities and increased focus on the ESO market.
HCL, for example, has utilized its product-focused background and
specialized knowledge in IT to become the largest ESO vendor in India.
TBR believes companies reliant on manufacturing and engineering need
to predict needs and prepare for opportunities they may not be able to
address on their own.
By partnering with an ESO vendor committed to expanding capabilities,
constantly improving its track record, and pushing the current limitations
to bring about the next wave of products, opportunities become limitless.
An array of sources indicate the global offshored ESO market will increase
from less than $100 billion currently to at least double that amount by
2020, 15% to 20% of which will be from Indian companies

 HCL successfully leveraged strong

partnerships with industry leaders to
penetrate the ESO market. It has received
top partnership awards from prestigious
companies such as Symantec, Boeing,
Microsoft, Cisco and Hamilton Sundstrand.
HCLs top IOP competitors in the ESO
market space are Wipro, Infosys and TCS.
The three companies combined saw more
than $1.4 billion in ESO revenues in 2011.

 Major aerospace organisations are located around

Bangalore, including HAL, National Aerospace
Laboratories (NAL), QuEST Global, Taneja Aerospace
and Aviation Ltd, Dynamatic Aerospace, Air Works
India Engineering Pvt. Ltd.,
QuEST's expertise in outsourced engineering services
ranges from concept design, detailing and analysis, to
product realization solutions in aerospace, civil
structures, power generation, industrial products, oil
& gas and transportation. Through our Global Product
Development framework, we provide better, faster
and more value-optimized solutions.

 Solutions and services provided by QuEST

Global
Design and detailing
Engineering Analysis
Manufacturing engineering
Technical Publications
Sustenance engineering
Embedded Systems
Special Services
Plant and Process

 Benefits of outsourcing
engineering services to QuEST
Focus on core activities
Flexibility on manpower
Faster time to market
Reduced product development costs
Knowledge retention
Move to a variable cost model