engineering indusrty

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Chapter 03

Industry Profile


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Indian Engineering Services Industry Profile:

Every economy consists of three sectors. They are primary sector (extraction such as

mining, agriculture and fishing), secondary sector (manufacturing) and the tertiary

sector (service sector). Economies tend to follow a developmental progression that

takes them from a heavy reliance on primary, toward the development of

manufacturing and finally toward a more service based structure. Historically,

manufacturing tended to be more open to international trade and competition than

services. As a result, there has been a tendency for the first economies to industrialize

to come under competitive attack by those seeking to industrialize later. The resultant

shrinkage of manufacturing in the leading economies might explain their growing

reliance on the service sector. However, currently and prospectively, with dramatic

cost reduction and speed and reliability improvements in the transportation of people

and the communication of information, the service sector is one of the most intensive

international competition. The service sector is the most common workplace in India.

The service sector consists of the soft parts of the economy such as Technology,

insurance, government, tourism, banking, retail, education, and social services. In

soft-sector employment, people use time to deploy knowledge assets, collaboration

assets, and process-engagement to create productivity, effectiveness, performance

improvement potential and sustainability. Service industry involves the provision of

services to businesses as well as final consumers. Services may involve transport,

distribution and sale of goods from producer to a consumer as may happen in

wholesaling and retailing, or may involve the provision of a service, such as in pest

control or entertainment. Goods may be transformed in the process of providing a

service, as happens in the restaurant industry or in equipment repair. However, the


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focus is on people interacting with people and serving the customer rather than

transforming physical goods.

Service Sector in India today accounts for more than half of India's GDP. According

to data for the RBI, the share of services contributes to 55.1 per cent of the GDP,

where as industry, and agriculture in shares 26.4 per cent, and 18.5 per cent

respectively. This shows the importance of service industry to the Indian economy

and as service sector now accounts for more than half the GDP marks a watershed in

the evolution of the Indian economy and takes it closer to the fundamentals of a

developed economy.

Indian service industry covers a wide gamut of activities like trading, banking &

finance, infotainment, real estate, transportation, security, management and technical

consultancy among several others. The major sectors that combine together to

constitute service industry in India are listed below

Information Technology

Trade

Education

Financial services

Media

Hospitality, accommodation and food services

Entertainment, culture and recreation

Transportation and warehousing

Storage


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The IT & ITes sector includes IT services, engineering design and R&D services,

ITES (IT-enabled services) or BPO and hardware. Today IT and ITeS sectors lead the

economic growth in terms of employment, export promotion, revenue generation and

standards of living. As per NASSCOM estimates, IT/ITeS sector (excluding

hardware) revenues are estimated at USD 87.6 billion in FY 2011-12; and the industry

is expected to grow by 19 per cent during FY 2012-13. ER&D contributes 16.7

Billion USD to Indian economy.

For the purpose of this study an engineering process is defined as a complete

engineering design cycle activity for a product or a service from the conceptualization

stage till the pre-manufacturing cycle including the design of the prototype. It also

extends beyond the manufacturing stage: this includes application like Product Life

cycle management (PLM) solutions and product reengineering solutions, etc.

Engineering processes also entail design and R&D activities across industry sectors.

Besides the design elements of a product or service the engineering process also

include the infrastructure, equipment and processes used in delivering the service.

The service offerings in this study are divided into three groups:

1. Product engineering and R&D

2. Engineering /Industrial design

3. Process engineering and R&D

The decision on what to outsource is based on the company strategies, perceived

market capabilities and costs.


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The value chain of EPO services indicates that engineering process outsourcing is

done at various level of complexity. According to the chart below, the complexity is

highest when outsourcing the core design and lowest in modeling and drawing.

Recently, with increasing globalization and growing engineering expertise of the

suppliers, outsourcing has risen remarkably. As consequent to shrinking product life

cycles, and increasing pressure to lower costs and retain engineers involved in core

engineering activities, global engineering outsourcing has been moving up the value

chain over the years. Overall less complicated engineering process work is still being

outsourced in higher volumes.

However, what is essential to the companies, it not to look at the volumes of

outsourcing of a certain application (such as 3D modeling), but rather to concentrate

on the drivers, which are changing along with the company/product strategies.

Companies who have decided to outsource their services to India have normally more

Product engineeringand R&D

Product design

Productdevlopment

Engineering/Industrial design

Industrial designservices

Structural designservices

MechanicalElectrical Plumbing

services

Process engineeringand R&D

Process design

Process devlopment


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than one driver to backup the decision. Thus it is essential to have ER&D activities

constitutes of CAD, CAM, CAE, Automation services enough experience from the

own product development processes, comprehensive and updated knowledge of the

markets and availability of skill level, and finally, a company should have clear idea

what they want to do and what they expect from the outcome. Organizations can

provide needed market information and background checks (of the vendors), and

assist firms to find out the best models for outsourcing.

Core Design/

Consept/Idea

High end Engineering

Testing and analysis likeFEA/CFD

Embedded Software

PLM solution

Product design

Design Analysis

Test Simulation

2D/3D modeling

Engineering Chage Order

Documentation and Control


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SERVICE OFFERING:

1. CAD:

Concept Development

Product design

Solid and Surface Modeling

Engineering Data Porting

Manufacturing Drawing

Reverse engineering

Engineering Change Management

Plant Layout engineering

Engineering

analysis

CAM,

processplanning

3D modeling,

geometric

designProduct Life Cycle Management

CPE

Surface

modeling

Integrated product

design & PDM

solutions

2D drafting &

drawing

detailing

Reverse

engineerin

g

Mechanical CAD/CIM/CAE

Conceptual

& eng.

design

Legacy

data

conversion

Design

automation


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2. CAE:

Finite Element Meshing

Static Analysis

Dynamic Analysis

Thermal Analysis

Motion Analysis

Sampling simulation

Computational Fluid Dynamics

3. Plant Engineering:

Feasibility Study and Facility Audit

Basic and detail engineering

Procurement support

Commissioning Support

Plant Optimization

Post project report

Factory Acceptance Test

Vendor Co-ordination

4. Design Automation:

Application development

Application Migration

Software re-engineering

Software customization


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Consultancy.

5. Plant Asset Management:

Asset Information Management

Document Management System.

6. CIM:

Jigs/Fixture Design

Tool/Die/Mold Design

NC Code Generation

Robotic/Human Simulation

Work cell Design

Offline Programming.

Software Technologies:

CAD: Pro-E/Wildfire, CATIA V4, V5,iDEAS,Unigraphics, CADDS 5, Inventor

Series, Solid Designer, Microstation, ME 10, SolidWorks

CIM: Delmia, FIDES, emWorkplace, ROBCAD, Pro/NC, Unigraphics, Delcam

CAE: ANSYS, iDEAS Simulation, Pro/Mechanical, ABAQUS, LS DYNA,

Hypermesh, Nastran, FEMAP, SOFY, CFX

Plant Assessment Management: Visual Studio, Oracle, SmartPlant P&ID, INTools

Design Automation: CATIA V4 IUA/GII, CATIA V5 CAA VC++, Pro-Toolkit


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The ER&D services is divided in to 10 major verticals, where each verticals are

distinguished depending on the type of products, manufacturing, application,

technology used. The list is as shown below,

Automotive

Telecom

Consumer Electronics

Heavy Machinay

Semiconductor

Computer Systems

Aerospace

Medical Devices

Energy

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