A new report from Research and Markets, “Offshoring of Automotive Design and Engineering Services to India," says that offshoring of automotive design and engineering work will result in double-digit growth for firms in India for the next five years. Revenues are expected to climb from $270 to $300 million in 2005 to more than $1 billion by 2010. Employment in the industry is expected to grow by 30% per year for the next three years from its current level of 12,000.

Analyst Niranjan Natu described auto design and engineering services as “a huge emerging opportunity that India is well positioned to exploit” based on its proven offshoring capability and the maturation of its automotive industry.
Offshore Indian vendors include captive units of firms such as GM, Delphi and Ford; subsidiaries of Indian OEMs, including Mahindra, Hero and Eicher; independent engineering design firms like Plexion Technologies, DC Design and Neilsoft and Indian IT services firms such as TCS, Wipro and Infosys.