Automotive Design outsourcing

Tag: Auto design and engineering services is a huge emerging opportunity that India is well positioned to exploit

India is voted as Choice No.1 as hub of global outsourcing. Automotive design outsourcing industry, which is valued near to 9 billion $, India enjoys top-of-mind recall. Despite of agony generated against outsourcing, India, is believed to be the most prefer destination for autodesign industry, is way ahead of China, Barzil, Thailand and mexico.
According to survey conducted by AT Kearney, 24% of the respondent gave a thumps up for India.
Result of survey :
India 24%
China 15%
Mexico 12%
Bazil 10%

India has a greater attraction in Engineering and technical service segment which is valued just around 2 billion $. 39% preferred India as a top-notch outsourcing center for
E&D(Engineering and design). Remember 2 billions is just a small pie of 440 plus billion $ automotive market. This statistic turned around many Designing/CAD industry to setup there facilitation in India. Satyam, tata technologies , geometric and M&M are major player and have a strong growth plan in future.
Even many MNC have setup there bank end R&D workshop in India. Toyota has already outsourced its power transmission from its Indian counter part. GM and Ford’s in-house outsourcing center made a good cost advantage alternative for those downward growing market in USA.

Few market Players In India:
Offshore Indian vendors can be categorized into four groups:
? Captives - GM, Delphi, Ford,
? Subsidiaries of Indian auto OEMs - Mahindra, Hero, Eicher
? Independent engineering design firms - Plexion, DC Design, Neilsoft
? Indian IT services firms – Tata Technologies, Satyam, Wipro, Infosys

For more info visit this
http://economictimes.indiatimes.com/articleshow/580344.cms

Sourcing Benefit:
Rising costs. Increasing labor costs, especially in North America, are resulting in a surge in overall costs.
Shorter product cycles. Growing pressure on auto companies to launch new models and variants within a short span of time.

Dropping profitability. New and emerging players are adding fresh capacity, which is, in turn, leading to price competition and hence affecting profitability of companies.

Expansion of capabilities and winning non-domestic business. Stagnant growth in home markets is forcing players to focus on expanding capacities and capabilities in emerging markets. Given the cost advantages, many of these centers are being leveraged to serve other markets.

Sourcing Chain:
Various automotive original equipment manufacturers (OEMs) and Tier I suppliers have started offshoring design and engineering services to India. Typically, OEMs outsource design and manufacturing of certain components or systems to their Tier I suppliers. Both, OEMs and ancillaries, establish offshore captive centers, some of whom are involved in high-end design and engineering services. In addition, the OEMs and Tier I suppliers tend to offshore low-end services to third party providers initially, before moving up to high-end services.

Service Chain:
The design and engineering services offshored to India are mainly of the mechanical type. These mechanical design services include data, analysis/validation and manufacturing engineering services. Electronics design services, which include embedded systems, are not so easily offshored. However, with the electronics content increasing in vehicles, this area offers significant growth potential for vendors with the requisite capabilities

PLM:
PLM, or product lifecycle management, could be defined as an information strategy that provides software solutions to help companies digitally transform their entire product lifecycle and maximise the business value of the product portfolio. Or, you could call PLM an enterprise strategy that lets organisations innovate, develop, support and retire products as one company, while capturing best practices and lessons learned along the way.

Now, CAD, CAM, PDM and the manufacturing process are converging through PLM. Yet, PLM is unique from other enterprise software because it focuses on driving top-line revenue from a repeatable innovation process. PLM is currently enabling the sort of convergence that ERP and CRM prompted in the past.
Product life cycle management involves the use of software like CAD, CAM, CAE — used to design models during the development of products in the manufacturing industry. This is not IT, but use of IT by mechanical and electrical engineers to design their products.

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