Continued...
 
 GS100: 2011 Global Services Compendium
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According to a recent survey conducted by ValueNotes Sourcing Practice, drafting & 3D modeling is considered to be the most popular area for outsourcing. Aerospace engineering is a big opportunity area as the outsourcing of machine parts is currently on a high. 

There is also a change in the nature of deals that are being companies are getting into. Engineering companies are now taking their outsourcing agreements beyond the traditional core areas. The nature of work currently undertaken by service providers calls for a substantial portion of the actual design activity. This is more on the back of buyers' realizing the fact that to fully utilize the outsourcing value and have a competitive edge they need to think beyond just the cost saving factor. At the same time, service providers are also coming up with technology innovations and building their expertise across different areas that now enables them to offer a full package of engineering services. The global engineering services partnership between Tata Consultancy Services and Rolls-Royce is a recent example of this. As a part of the deal, TCS will be offering various engineering services to the company across the entire product life cycle.

ESO requires years of knowledge and skill-building to acquire scale. Growth through acquisitions is therefore a faster route to establishing market presence in ESO. Symphony has acquired Proteans for its expertise in PLM and its client base captive. The company was earlier focused on the software product development market and has now forayed into PLM for automotive and aerospace markets with the Proteans acquisition. Service providers are acquiring MNC R&D centers in India to obtain exclusive access to product knowledge or professional services business. MindTree’s acquisition of Kyocera Wireless India center and Cognizant’s acquisition of Invensys captive in Hyderabad are steps in this direction.

 

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 GS100: 2011 Global Services Compendium
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