A 2016 report by management consulting firm Accenture says that in the last decade, India has emerged as the location of choice for offshoring engineering, research and design (ER&D) services for global corporations. Today, 46 of the top 50 ER&D spenders and 45% of the top 500 global R&D spenders have their centres in India.
India’s Engineering R&D (ER&D) Globalization and Services market reached US$ 22.3 billion in 2016 and is set to rise to US$ 42 billion by 2020.
India has a total of 25 innovation centres in the country and has been ranked as the top innovation destination in Asia and second in the world for new innovation centres. The country accounts for 27 per cent of Asia’s new innovation centres.India has moved up to the 60th position in the 10th edition of Global Innovation Index (GII) in 2017 and will likely get into the list of the top 25 nations in the next 10 years.
India ranks second amongst the countries with highest increase in contribution to high-quality scientific research.
India-based R&D services companies, which account for almost 22 per cent of the global addressed market, grew much faster at 12.67 per cent.
The market for Engineering R&D (ER&D) companies in India is mainly structured across pure play PES companies such as Cyient, QuEST, eInfochips and the larger IT companies with a PES play such as Wipro, TCS, HCL. India’s ER&D services market is expected to reach US$ 15-17 billion by 2020 and North America continues to be the largest market contributing to 55 per cent of revenues.