Mumbai, India · February 13, 2008 Booz Allen Hamilton – NASSCOM Presentation This material was used by Booz Allen Hamilton...
Engineering lies at the very heart of organizations Note:  Based on top engineering spenders/key innovators in Automotive,...
IT is important – but engineering is in a league of its own Percentage of Respondents Considering a Function Core/Strategi...
IT is linked to the entire value chain but engineering sits at the heard of it Finance Sales &  Marketing Product  Strateg...
Companies such as Toyota are built around engineering QRD Cost PRODUCT STRATEGY PROGRAM MANAGEMENT ENGINEERING SOURCING PR...
Engineering landscape is evolving more rapidly Past: Extent of Engineering (1900s) Source:  Booz Allen IC Dominant region ...
Engineering – Present Present: Extent of Engineering Source:  Booz Allen IC Dominant region for engineering activity Emerg...
The Future Future: Extent of Engineering (2015) Source:  Booz Allen IC Dominant region for engineering activity Emerging r...
Following the shift, companies are increasingly utilizing global model for engineering Share of Foreign R&D Sites  –  All ...
Companies view engineering services through a global lens  Sites Under Active Consideration for Engineering Services Note:...
Business of engineering offshoring is competitive—many want a piece of this pie Government Support for Engineering Offshor...
Countries like China are formulating policies that are aggressively geared towards attracting high value add services Comp...
So yes, it is a big opportunity Market Potential for India (2004 – 2020) Revenue Potential ($ Bn) Commercial Opportunity D...
Yes, India leads the pack for engineering services, currently Competitive Index of Countries – Engineering Services (Prese...
…but others are catching up  Competitive Index of Countries – Engineering Services (2015) *  Competitive Index based on a ...
Questions for the panel <ul><li>What is the future of off shoring of engineering services to India </li></ul>What are the ...
Q & A
Upcoming SlideShare
Loading in …5
×

Meeting the challenges in off shoring of engineering services, Vikas Sehgal, Principal and Director, India Business, Booz Allen Hamilton

5,457 views

Published on

Meeting the challenges in off shoring of engineering services, Vikas Sehgal, Principal and Director, India Business, Booz Allen Hamilton

Published in: Business, Design
4 Comments
3 Likes
Statistics
Notes
  • http://www.slideshare.net/mohammadaarifkhan/engineering-services?next_slideshow=2
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Nice presenation.
    Any recent (2009/10) presentation on Manufacturing challenges - India specific ?
    Need this to take up for policy measures. Will be of great help, if any.
    Can contact on dave3h@gmail.com
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Nice ppt
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • The US companies should not be allowed to outsource American jobs to any country, including the non-Englisih countries such as India.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
5,457
On SlideShare
0
From Embeds
0
Number of Embeds
55
Actions
Shares
0
Downloads
684
Comments
4
Likes
3
Embeds 0
No embeds

No notes for slide

Meeting the challenges in off shoring of engineering services, Vikas Sehgal, Principal and Director, India Business, Booz Allen Hamilton

  1. 1. Mumbai, India · February 13, 2008 Booz Allen Hamilton – NASSCOM Presentation This material was used by Booz Allen Hamilton during an oral presentation; it is not a complete record of the discussion. No part of this document may be circulated, quoted, or reproduced for distribution without prior written approval from Booz Allen Hamilton.
  2. 2. Engineering lies at the very heart of organizations Note: Based on top engineering spenders/key innovators in Automotive, Aerospace, Telecom, Semiconductor, Consumer electronics and Pharmaceuticals verticals Source: Booz Allen IC, Booz Allen Innovation 1000 database, Booz Allen analyses
  3. 3. IT is important – but engineering is in a league of its own Percentage of Respondents Considering a Function Core/Strategic (2007) Source: Booz Allen IC, Booz Allen client engagements
  4. 4. IT is linked to the entire value chain but engineering sits at the heard of it Finance Sales & Marketing Product Strategy Sourcing IT Manufacturing Working Relationships B/W Different Functions Engineering Source: Booz Allen IC, Booz Allen client engagements Strong linkage Tertiary linkage
  5. 5. Companies such as Toyota are built around engineering QRD Cost PRODUCT STRATEGY PROGRAM MANAGEMENT ENGINEERING SOURCING PRODUCTION Conservative Investment Design Re-use CE as Integrator Creative Tension Strong Functional Engineering Production Orientation Incre- mentalism Discipline and Schedule Maintenance Long-term Supplier Competition Supplier Capability Development JIT and Kanban Supplier Engineering Follower Configuration Simplicity Reveal Problems Continuous Improvement Long-term Supplier Relationship Bundled Outsourcing Toyota Business Model Source: Booz Allen IC, Booz Allen client engagements
  6. 6. Engineering landscape is evolving more rapidly Past: Extent of Engineering (1900s) Source: Booz Allen IC Dominant region for engineering activity Emerging regions for engineering activity
  7. 7. Engineering – Present Present: Extent of Engineering Source: Booz Allen IC Dominant region for engineering activity Emerging regions for engineering activity
  8. 8. The Future Future: Extent of Engineering (2015) Source: Booz Allen IC Dominant region for engineering activity Emerging regions for engineering activity
  9. 9. Following the shift, companies are increasingly utilizing global model for engineering Share of Foreign R&D Sites – All Companies – Top Reasons for New Site Planning Note: Based on survey of companies with home base in Europe Source: Booz Allen Survey of leading companies Percentage of Sites Technology Clusters or Academic Institutes (20%) Markets or Customers (24%) Proximity to Production Facilities (12%) Qualified Workers (18%) Low-Cost Skill Base (18%) Business Environment (9%)
  10. 10. Companies view engineering services through a global lens Sites Under Active Consideration for Engineering Services Note: Weighted average scores based on client ratings Source: Booz Allen client study; Booz Allen analysis Satellite Site Global Service Site Sao Paulo Bangalore Hyderabad Pune Gurgaon Mysore Johannesburg Budapest Mexico City Moscow St. Petersburg Beijing Shanghai Changchun Guangzhou Bangkok Manila Chennai
  11. 11. Business of engineering offshoring is competitive—many want a piece of this pie Government Support for Engineering Offshoring (Present) Source: Booz Allen IC Forced Support Active Support Passive Support Policy Support for Engineering Offshoring
  12. 12. Countries like China are formulating policies that are aggressively geared towards attracting high value add services Comparison of Incentives Offered by Countries for R&D/Engineering Services (Relative Scale) Thailand Hungary Russia Czech Republic Poland India China Philippines Training & Education (e.g. grants to train employees for new roles, grants to R&D institutes) Infrastructure Improvements (e.g. access to communication, power, water supply, roads, etc.) Subsidies & Grants (e.g. Subsidy on percentage of total cost) Tax Reduction (e.g. tax abatement in SEZs) Mexico Strong Support Moderate Support Passive Support Policy Support for Engineering Offshoring
  13. 13. So yes, it is a big opportunity Market Potential for India (2004 – 2020) Revenue Potential ($ Bn) Commercial Opportunity Defense Opportunity Source: Booz Allen NASSCOM study; Booz Allen IC; Industry research, Expert Interviews
  14. 14. Yes, India leads the pack for engineering services, currently Competitive Index of Countries – Engineering Services (Present) Competitive Index* * Competitive Index based on a range of 0 – 7 (0 – Minimum, 7 – Maximum) Note: Scores for countries are based on scores for components in Country Assessment framework Source: BAH analyses
  15. 15. …but others are catching up Competitive Index of Countries – Engineering Services (2015) * Competitive Index based on a range of 0 – 7 (0 – Minimum, 7 – Maximum) Note: Scores for countries are based on scores for components in Country Assessment framework Source: BAH analyses Competitive Index*
  16. 16. Questions for the panel <ul><li>What is the future of off shoring of engineering services to India </li></ul>What are the challenges that you have experienced in off shoring Are there differences in challenges when dealing with vendors vs. captives What are the most attractive attributes of vendor, and captive 1 2 3 4 Which countries are you looking to source the technical services from – apart from India 5
  17. 17. Q & A

×