How Indian engineering services industry could sustain it's Current Leadership Position

India with its strength in outsourcing business and a relative stronger position in Automobile, Hi-tech telecom and Aerospace industry is well saddled to become an indomitable force globally for Engineering services outsourcing work.

Various Industry surveys suggest that the current value of design services, which is US$700 billion, and the expected value of design services, by 2020 will be US1 trillion with Design, R&D, Product development and Innovation as some areas of focus. For instance with R&D focus industries like IT, health life sciences, defense systems, telecom, aerospace, automobile and industrial engineering the opportunities are growing amidst major corporations setting R&D centers (even terming them as ODCs sometimes) in various offshore locations.

The main purpose for the global companies to outsource is for improving their bottom lines by getting things done from the low cost countries, and also to tap the young talent from across the boundaries and Geographies for the better competitiveness in the technology and product pricing.

With the increasing costs and overheads in the ODC’s (Offshore development Centers) due to raise in salary levels, competition etc, and also with the tremendous competition from other developing countries like Brazil, China, South Africa, how Indian engineering services industry is equipped to sustain in its leadership position?

Also what ways could Indian engineering services industry could offer better services to attract more integrated solutions so that it stays more competitive even after India enters to a stage where it’s  no more a low cost country.