| Source: | | | | Technologies Ltd's aerospace practice, |
| Indian software firms say they are well | | | | said. |
| placed to grab a bigger share of the | | | | HCL Technologies, India's fifth-ranked |
| aerospace market as airplane makers and | | | | software services exporter, has over 30 |
| defence companies look to control costs | | | | aerospace customers including plane |
| by outsourcing design and management | | | | makers Boeing Co and Airbus. "Given the |
| systems. | | | | current business scenario, we're highly |
| Asia's fourth-largest economy is already | | | | optimistic that the future is bright and |
| a hub for global corporations to | | | | the sky is the limit," Kumar said. |
| outsource software services from | | | | Boeing would increasingly use Indian |
| application development and system | | | | companies to get technology work done |
| integration to supply chain management. | | | | cheaper, Dinesh Keskar, senior vice |
| Global spending on engineering services | | | | president of Boeing's commercial |
| was $750 billion in 2004, with aerospace | | | | airplanes division, told Reuters at the |
| accounting for 8 percent, and could rise | | | | Aero India 2007 earlier this month. |
| to $1.1 trillion by 2020, according to | | | | The services provided by Indian software |
| the National Association of Software and | | | | companies to aerospace firms include |
| Service Companies, India's IT industry | | | | aircraft design, development of on-board |
| lobby group. | | | | electronics systems such as flight |
| The total offshore engineering spend is | | | | control and engine control, and ground |
| expected to grow to $150-$225 billion by | | | | systems like air traffic management. |
| 2020 and India, with its talent pool and | | | | Offset Policy Boost |
| experience in engineering services, | | | | Analysts say Indian's 2005 offset |
| could pick up 25 per cent of that, | | | | policy, which requires foreign aerospace |
| according to the association. | | | | firms to spend a percentage of the value |
| "Aerospace as a vertical is being | | | | of any Indian orders in India, such as |
| focused more than the others, especially | | | | in establishing a training centre or |
| by companies like ours whose core | | | | buying services and supplies from local |
| strength lies in engineering," M Ashok | | | | companies, was also likely to boost |
| Kumar, executive vice president of HCL | | | | outsourcing. |