Engineering Final

8/8/2019 Engineering Final

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Engineering Service

BY GROUP 5

PRACHI RANJAN SWAIN(14) PAWAN KUMAR(26)

SARAD GUPTA(47) MAYANK SHOUCHE(25)

NEETHU VARKEY(27) NAMITA KADAM(


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OBJECTIVES

To analyze whetherIndia can becomea global hub for Design andEngineering Services .


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Path to follow

Market overview of engineering anddesign services.

Type of engineering services

Indian engineering service .

Indian service achievement

SWOT analysis of engineering

servicesRecommendation

Conclusion

References


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Engineering :

The function of determining the integrity ofmaterial and services in order to measure andmaintain operational reliability, approve designchanges, and assure their conformance withestablished specifications and standards.

Engineering Services :Organizations primarily engaged in applyingphysical laws and principles of engineering in thedesign, development, and utilization of machines,materials, instruments, structures, processes, and

systems.


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E i i i k


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Engineering services market-INDIA

The value of EPO in India is expected to rise with17,6 % CAGR, and to be approx $20 billion in theyear 2010 (in FinPro 2008 cited E valueServe).

R&D and engineering was at 2008 approx $4,5

billion.

With software product license exports were worthof &6,3 billion in 2008.

Current market for ESO (Engineering servicesoutsourcing) in India is around 2 billion US dollars

The industry employs approximately 100 000engineers in India


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Various Engineering

Services

Civil engineering services Architectural Engineering Services

Mechanical engineering services

Integrated engineering services

Global engineering services

Electrical engineering services

Contract Engineering Services

Design Engineering Services


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TYPES OF ENGINEERING SERVICES


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Service offerings andthe Value Chain

he complexity is highest when outsourcing the core.esign and lowest in modeling and drawing


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Market segment

Players can be divided into different clusterson the basis of their strategic operationalorientation:

Captive engineering centers (mostlyMNSs),

IT organizations (dominated by large

Indian firms)Concentrated on EPO services

OEMs with engineering capability.


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Players across segment


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The market is dominated by big players, 93% ofthe total revenue is contributed by the 12% of

total of organization in the market.


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Sector wise report


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GDP OF INDIA & SERVICESCONTRIBUTION

SECTORS EMPLOYMENT

CONTRIBUTION

GDP

CONTRIBUTION

AGRICULTURAL 60% 28%

SERVICES 28% 54%(15% is on engg.services)

INDUSTRIAL 12% 18%


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INDIA ACHIEVEMENT INSERVICE SECTOR


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Examples of captive R&D centres of MNCs

1. IntelIntel set up its India development centre inBangalore already in 1998.

The largest non-manufacturing site for Intel.

2. General Electronics, GE

Has R&D centre in Bangalore since year 2000.

Divisions are divided in energy infrastructure and

infrastructure. They solely do in house research.

The centre employs 3000 engineers in India.


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3. Boeing India

Working on key technologies in India for improvingthe aircrafts efficiency .

Has opened own research centre in Bangalore inthe end of March 2009.

Has collaborations with several institutions fordevelopment of aerospace

Technology in India like Indian Institute of Science(IISc) for research .


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4. ABB

ABB has set up R&D centers in Bangalore andChennai. ABBs biggest R&D centre is in India,with 600 highly educated engineers, PhDs and M

Techs.

Do detailed engineering work for global projects,including support-system commissioning.

The company plans to set up the countrys biggestR&D centre by 2010. four).


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Design outsourcing contracts are sweeping intodiverse industrial sectors like .

Caterpillar (construction machinery) has set up itsdesign hub at Chennai.

Intel (semiconductors) is working on chipsets inBangalore.

Apple has approached National Institute of Design(NID) to work on a handheld computing device.

Ranbaxy (pharmaceuticals) is working on newshapes and colors for the capsules.

Some Nokia (telecommunication) mobiles aredesigned here.

Whirlpool Corp. (consumer durables) is askingIndian design houses to develop new washingmachines.


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Dilip Chhabr ia An Inspirat ion forDilip Chha br ia An Inspirat ion for

M any ! !Many ! !

Dilip Chhabria - A big nam e in Engineering Serv icesDilip Chhabria - A big nam e in Engineering Serv ices

Industry , is a design guru and represents the designIndustry , is a design guru and represents the design

face of Indian automobile industry .face of Indian automobile industry .


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Engineering Services offered by his Compan::

Styling! Vehicles, Aviation and CASShow car and prototype build.

Customized and Armored vehicles Builds.

Special purpose vehicles Builds.

Bespoke Furniture.


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Engineering Design

Automobile Design : India is one of the few countries outside the US,

Europe, Japan and Korea with a proven capabilityto design and build automobiles.

Employee strength : 40,000 in 2010 from about12,000 in 2005.

Export : US$ 1 billion by 2010 from US$ 270-300million in 2005.

Eg: Tata -Nano ,Indica ..Harita Infoserve Ltd. -GM.

Plexion Technologies - DaimlerChrysler bus.


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Contd.

Semiconductor design:US$ 3.25 billion semiconductor design servicesmarket in India is expected to reach US$ 14.4billion by 2010.

200 semiconductor companies operating in India,

about 120 of these are into chip-designing.Texas Instruments, IBM Microelectronics Inc.,

Advanced Micro Devices Inc. (AMD), Intel Corp.,Broadcom Corp., Cisco Systems Inc., MicrosoftCorp, HCL Technology Ltd., ST Microelectronics,

Sankalp Semiconductor, among others.Indian electronics production expected to reachUS$ 58 billion by 2010 from US$ 10.99 billion in2005 (a CAGR of 26.4 per cent), the chip designsegment is witnessing huge growth.


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SWOT ANALYSIS

7 5 0 0 0 0


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STRENGTHS Talent pool

500 PhDs, 200,000 engineers, 300,000 non-engineering postgraduates and 21,00,000 othergraduates each year

The Indian workforce is fluent in English, flexible towork in shifts, dedicated, and can work under pressure

to meet project deadlines.

Strategic expertise

Long-term partnerships with internationalorganizations;

They adapt quickly to changing global trends

Achieving quality certifications such as SEI CMM Level5, COPC, PCMM, ISO 9001:2000.

Outsourcing Vs establishing captive centres

6 9 0 0 0

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4 7 0 0 0

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3 5 0 0 0 0

4 0 0 0 0 0

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6 0 0 0 0 0

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I n d i a C h i n a J a p a n U S A E u r o p e a n

c o m m un it


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WEAKNESSES

Infrastructure and domain expertise

Skill is not par with demand

Lack infrastructure development

Lack of impetus in R&D

Need to gear up their research and developmentactivities.

Not utilizing their full potential and have lessoperational autonomy

Regulatory support

Lacks full-fledged governmental support as inother developing economy


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SWOT ANALYSISTHREATRising wage levels

Wages for highly skilled workers in India are risingas the economy develops.

Competition from other economies

India faces stiff competition from developingeconomies such as China and Malaysia.

The Malaysian government is striving to positionthe country as the hub for technology andservices innovation


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SWOT ANALYSIS

THREATCompetition resulting from market

concentration

Foreigndesign / CAD service providers are setting

their foothold, result in market concentration andincreased competition.

Information safety issues

European OEM manufacturers feel threatened thatif outsourced, their product designs would becopied by other manufacturers.


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OPPORTUNITIES

Automotive companies launching new models at

shorter times..OEMs would prefer to outsource the entire processthat ranges from design to engineering to a singlecompany,

Aerospace offers the greatest potential forexpansion

Companies in India have developed capabilities andskill sets, and invested in technology platforms toleverage this opportunity.

Engineering services off shoring could facilitatecreating 150,000 to 200,000 additional jobs, up to1,000,000 with multiplier effect.

Engineering outsourcing Market from India to grow

to


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Government Initiatives

The Union cabinet has also approved the

National Design Policy in 2007 with the aim toglobally position and brand Indian designs andmaking "designed in India" a by-word for qualityand utility. The policy also envisages:

Setting up of specialized Design Centers of"innovation Hubs".

Enhancing the status of the National Institute ofDesign (NID) as a global centre of excellenceand setting up two-three undergraduate design

centers.Launch the Good Design Mark to promotedomestic designs.

Setting up of new institutes and sector-specificdesign education centres.

Setting up an India Design Council (IDC).


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CONCLUSION


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but others are catching upompetitive Index of Countries Engineering Services( )015

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Engineering landscape is evolving


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Engineering landscape is evolvingmore rapidly: ( )ast Extent of Engineering 1900s

Dominant region for engineering activity

Emerging regions for engineering activity


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Engineering Present

:resent Extent of Engineering




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The Future

:uture Extent of Engineering( )015



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Engineering Final