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India: A Promising Nation To Offer Engineering Services Outsourcing/ EPC services

India is opening up to the third major service stream after ITES (Information Technology Enabled Services) and BPO (Business Process Outsourcing) and this sector is predicted to rapidly boost up the economy of the country. The service we are talking about here is the Engineering Service Outsourcing.

ESO is a huge market and its global spending is almost equal to India’s GDP. If India builds up its capacity and infrastructure, then its international reputation will become better and it will become the most preferred destination for this high-value service.

According to survey, total spend on engineering services was $930 billion in 2012 and by 2020 it is expected to reach $1.4 trillion. Total amount spent on outsourcing of engineering services in 2012 was $325 billion and is estimated to grow 3-4 times the rate of total amount spent on engineering. Major offshore locations include Eastern Europe, Mexico, China and India, with India consisting of approximately $13 billion.

Statistics for Indian Scenario
  • USD 12.4 billion ER&D (Engineering, Research and Design) export revenue estimated from India in FY 2014
  • USD 37-45 billion ER&D revenues from India – NASSCOM 2020 vision
  • By 2030, India’s labour supply will reach 630 million from 470 million which is today. This will make India the single-largest source of incremental labour supply throughout the globe. Since we produce a higher number of science and engineering graduates than nations like the US, we could capture a greater global opportunity in the field of technology and other knowledge-intensive areas.

Engineering Services Outsourcing – India’s Strengths

  1. India has the largest pool of engineering graduates with appropriate skill and talent among other emerging countries that are capable of taking up this kind of work. It can even beat China and Russia combined.
  2. India has the advantage of English language skills unlike China, cultural compatibility with the West and a robust legal and political system.
  3. India’s time zone proves beneficial to the outsourcing countries to provide continued service to clients.
  4. India is developing strong partnerships with other nations so as to compete in a fast-changing global market and is actively creating a business model that is necessary to deliver value to all the clients who are located thousands of miles away from the country.
  5. The strong track record of Indian companies in the ITES and BPO sectors is likely to boost the confidence of global clients in the capabilities of the nation.

Engineering Services Outsourcing – Challenges India Faces

  1. Although India has trained resources in ITES and BPO services, not everyone is equipped with the right skill sets required to succeed in this market. We need to improve domain expertise.
  2. India does not have the physical infrastructure to achieve growth in engineering services.
  3. The country needs enhanced manufacturing capabilities.
  4. To achieve success in ESO, India will require a serious commitment and political leadership even from private businesses to make this nation an attractive business destination.
  5. It must develop smart cities with world-class infrastructure over the next few years.
  6. Opportunities for engineering education must be expanded and cutting-edge research must be the main area of focus. Institutions that are devoted to excellence in teaching must be established.

We cannot let Engineering Services be a missed opportunity for growth. Therefore, if the public and private sectors join hands to plan serious investments in this sector, we an observe an unprecedented growth.

Engineering Services – Top Demand Sectors

Industries, which represent a high percentage of global engineering spend include:

  • Manufacturing clients from Chemical, Specialty Chemical, Agrochemical and related industries
  • Oil & Gas
  • Utilities
  • Construction
  • Automotives
  • Aerospace
  • Telecom

For each of these sectors, trends across service offerings which require engineering services include plant design, product design, process engineering, plant maintenance, innovation services.

Reasons To Outsource Engineering Services To India

Many companies and nations use offshoring primarily to cut costs. While some also do it with the aim of opening up new markets and boost the overall quality and productivity.

With various campaigns of the government like Make in India, Skill India, etc., we have made efforts to create awareness of our country’s engineering expertise. This in turn could multiply and amplify opportunities for the growth of ESO firms in India.

Engagement Model

Engagement Model

At SES, we serve international clients through various engagement models that can be customized depending upon client project requirements. To begin with, client may start a pilot project with fixed price model having a dedicated project team. Once relationship matures over period of time and work processes are standardized, a dedicated offshore engineering development centre would be set up with resources assigned on long term basis.


Apart from engineering services outsourcing, India’s vast manufacturing base also offers low cost sourcing advantage for overseas buyers for process equipment (pressure vessels, heat exchangers, pre fabricated skid mounted plants etc.) for Oil & Gas, Chemicals, Specialty Chemical and related industries.

With our vision of being one of the leaders in the engineering & construction services business and to provide global, flexible, speedy, low cost and innovative technology solutions and best in class quality services to the industry, we believe our company is poised to grow in coming years. With our resources who have worked with overseas clients and understand outsourcing modality, Shiva Engineering is striving towards making a difference to this sector globally.

We are continually putting in more efforts to add value and offer mature engineering services to our clients worldwide!