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News >> Technology >>
Outsourcing designs boosts auto software sale
By agencies
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Monday, 07 November 2005, 20:30 IST
BANGALORE: Outsourcing car designs to India by automobile manufacturers has boosted sales of related design engineering software, according to Narendra Reddy, Managing Director (India Operations), UGS, an engineering services company that offers CAD-CAM solutions and PLM solutions.
He said, The total design outsourcing market is $500 million and it is expected to touch about $12 billion in the next five years. With a growth rate of 12 percent, the manufacturing industry is contributing to adoption of CAD-CAM products.
With General Motors and Ford entering the country, as well as Tata Motors and Mahindra and Mahindra setting up design labs, the necessity for engineering service solutions is increasing. Reddy said, Manufacturing companies will also require PLM solutions in the near future. The basic requirement is to produce products in time.
The Indian automotive industry, consisting of both foreign and homegrown players, has been at the forefront of adoption of the latest CAD/CAE/CAM technology and processes. Supply chain companies are also implementing them. Tier I-III suppliers who form the automobile ecosystem in cities such as Chennai, Pune and Bangalore are adopting these solutions.
UGS derives 40 percent of its revenues from the automotive sector, 24 percent from engineering services and 11 percent from industrial machinery. The company has a headcount of 6,800 people worldwide, with 500 in India. In the next two years they are planning to double the headcount.