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Baker’s Dozen as identified by Dataquest for the Engineering Services Industry

 
Data Quest, July 31, 2007
 
 
Company Positioning Revenue
(Rs crore)*
TCS The top Indian IT services players tops in engineering services too, with a well-balanced portfolio in automotive, aerospace, and industrial machinery. Getting serious about construction too 725.3
Tata Technologies The Tata Motors subsidiary made it big through acquisition of INCAT, a Detroit-based engineering firm 675.8
Satyam The unsung hero of engineering services. Satyarn follows a TCS-type model and has a fairly well-balanced vertical break-up with automotive, aerospace, consumer products and plant, and industrial automation contributing significant parts to its revenue 450.5
HCl Though HCl's engineering capability as an engineering service provider is more well-known, it draws most of its revenue from aerospace, where it is an undisputed leader 314.4
Infosys Its engineering services is fairly low-profile, very much unlike Infosys. It draws most of its revenue from the manufacturing segment 222.5
Patni Patni is fairly serious on engineering services as its growth engine. In addition to its well-balanced industries portfolio (with most revenue coming from medical devices), it is the only player that has penetrated the Japanese market, a large engineering services market, fairly well 216.2
Infotech Enterprises Focused on aerospace with high-end design work, with Airbus and Boeing as major clients 205.9
Rolta It is one of the few players well-entrenched in construction. It also has a thriving ship-design services practice 195.1
Ouest A new generation engineering services firm, Quest is modelled along the large IT services firms except that it is completely focused on engineering services, with aerospace being a major focus. It also draws its revenue from automotive and industrial products 153.2
Wipro Wipro, a global leader in telecom and semiconductor design services features so low in this list, primarily because we have excluded these segment from this research 141.9
l&T Infotech The only successful company among the spin-ofts of engineering companies in India, l&T Infotech, is strong in construction and manufacturing segments 128.4
Neilsoft Neilsoft draws most of its revenue from construction, industrial automation and transportation (including automotive and marine) 65.3
Geometric Software Geometric's strength lies in automotive and consumer products 52.3
*From engineering services only 1$=Rs 45.05
 

These thirteen companies account for 84.3% of the third party engineering services industry

 
In the traditional IT services space, learning and un­learning of skills are fairly rapid. Also, it is possible to ro­tate large number of employees across verticals. In engi­neering services, that is not so. It is unrealistic to expect an automotive engineer to do construction design. Also, the number of people in a project team having in-depth domain knowledge is just about 10%-15% in IT; whereas it could be as high as 45% in engineering services.

Recruitment poses a challenge, especially in fields where Indian engineering is not that developed. Most companies hire locally, though acquisitions have helped in getting the right skills, to some extent.

Internal training is something that even the smallest of players spend heavily on. Unless there is a mechanism to address this challenge, acquiring and nurturing talent could be a bottleneck.

 
-Shyamanuja Das
shyamanujad@cybermedia.co.in
 
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