From cars to aircraft, the world runs on Indian software and digital tech
Summary
Lower cost of Indian talent drives offshoring from developed countries.As the software content in vehicles is growing, with systems like smart cockpits becoming an integral part of the auto ecosystem, India has become the go-to place to source digital engineering and talent, ET reported recently.With its combination of readily available skilled engineers and ER&D (engineering research and development) hubs that offer low-cost solutions, India has become the destination for auto OEMs, or original equipment manufacturers, such as Renault, BMW, Jaguar Land Rover and Honda to secure their digital content needs, according to a recent JP Morgan Equity Research report.The demand has been so high that last year, L&T Technology Services (LTTS), which provides engineering research and development services, set up a delivery centre in Krakow, Poland, to meet the requirements of a leading US-based auto OEM.ER&D services companies provide support to auto OEMs and tier-1 component suppliers in vehicle product design and development of electric motors, car infotainment systems and algorithms for autonomous driving.The urgency among auto OEMs to move towards EACV (electric, autonomous and connected vehicles) is pushing them to work with services providers to hasten product development cycles and eventual rollout in the market. “India is in a sweet spot because in no other geography can enterprises get digital talent at scale and cost-effective price points,” Pareekh Jain, CEO, EIIRTrend & Pareekh Consulting, told ET recently.While Western auto majors have taken to Indian tech recently as vehicles increasingly use sophisticated digital solutions, aerospace companies have been relying on Indian tech for long.Boeing Co. and Airbus SE are increasingly looking to India for highly-skilled, low-cost engineers to meet a boom in demand for aircraft and expand their manufacturing presence in the world’s fifth-largest economy, news agency Bloomberg reported recently.With about 1.5 million engineering students graduating annually, India is a rich source of talent for plane makers facing record orders from airlines as travel surges again after the Covid pandemic, Bloomberg reported. Boeing can hire an engineer in Bengaluru, India’s southern tech hub, for 7% of the cost of a similar role in Seattle, according to salary data compiler Glassdoor. “A great example of this is the progress Indian startups have made in enabling step-change innovation in aerospace," she told TOI in an interview two years ago. The first statement might come true in the not-so-distant future as cars and aircraft use more and more digital technology with the rise of artificial intelligence, virtual reality, autonomous mobility, etc.