The Financial Times

Engineering 'next frontier' of outsourcing

August 4,  2006

    Engineering jobs outsourced to India could create $40bn in annual revenues and 250,000 positions in the country by 2020 as demand for more sophisticated services grows, according to a report released yesterday. However, poor infrastructure and a shrinking talent pool are hurdles to potential expansion. A report released yesterday by Nasscom, India's IT industry trade group, and consultancy Booz Allen Hamilton, says engineering work such as designing and testing cars, consumer products and military equipment is the "next frontier" of outsourcing for India. The global offshoring engineering industry is expected to grow to $150bn-$225bn by 2020 from $10bn-$15bn last year, according to the report. It estimates India could claim a 25 per cent market share of the industry by 2020 across a range of sectors.

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