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KPIT Cummins bets big on engineering services
By siliconindia
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Wednesday, 02 December 2009, 14:59 IST |
11 Comments
Mumbai: KPIT Cummins, a Pune based technology solutions provider, expects half of its revenues to come from engineering services over the next 3-4 years.
"We are looking at a 50:50 kind of mix between our IT solutions practice and our engineering offerings," Girish Wardadkar, President and Executive Director, KPIT Cummins, told Business Line on the sidelines of an industry conference recently.
Currently, the BSE-listed company generates one third revenues from the engineering services outsourcing practice. Despite the troubles faced by U.S. carmakers, Wardadkar feels that the automotive engineering practice would continue to drive growth for his company.
"We have a natural benefit of working in the automotive space through our relationship with Cummins, the world's largest diesel engine maker. Moreover, most U.S. companies are now beginning to do their manufacturing and engineering outside of the U.S. As long as we work with their counterparts in Europe, Japan or Korea we should be fine," he said.
In 2002, KPIT Infosystems had merged with Cummins Infotech the software development arm of Cummins, to form KPIT Cummins. Moreover, the company is bullish on capitalizing on the technology spend by the Indian defence establishment. However, KPIT Cummins is not keen to enter into the aerospace engineering market largely due to lack of certified engineers in this domain and the restrictions surrounding outsourcing of engineering work.
"If I have one dollar today and I have the choice of putting it either in automotive or in aerospace, I would rather put it in automotive engineering," he said.
