ER&D Sub-sector: at a glance

ER&

D has established India as a design

Engineering and R&D (ER&D) services are those that augment or manage processes that are associated with the creation of a product or service, as well as those associated with maximising the life span and optimising the yield associated with a product or asset

Engineering-intensive industries such as Telecom (30 percent), Semi-conductor (20 percent) and Automotive (12 percent) are the biggest contributors to ER&D sub-sector’s revenues, contributing to almost 60 percent of the revenue base

Broad range of service offerings, including embedded software and hardware design services, testing and V&V, prototype building, etc.

North American market is the biggest customer base, contributing almost 50 percent of revenues. Globally, there are about 400-500 customers that account for 80 percent of the global ER&D spend

Vertical Profile

Horizontal Profile/Service Offerings

Customer Profile

Profile

ER&D Sub-sector: an overview

Number of people directly employed in the ER&D sub-sector

Expected revenue from ER&D services by 2016

Total amount of ER&D sub-sector exports in FY2012(E)

India's share of the global ER&D market

Number of organisations in the ER&D sub-sector

India's position in global ER&D landscape

Growth of the ER&D sub-sector from FY2012 to FY2013(E)

Total contribution of ER&D sub-sector in IT-BPM exports

>2,00,000

>USD 15 Billion

USD 11.2 Billion

22 percent

400+

1

9.2 percent

14.8 percent

and innovation hub

Occupational Analysis for Engineering and R&D 1717

Key Trends

Addressing white spaces across service offerings

Invest in building end-to-end ER&D capabilities in select service offerings

Innovation mindset Innovating across offerings at product and process levels

Hyper-specialisation approach in the sub-sector

High-end offerings like knowledge-based engineering or engineering consulting

Higher value-adding service Prototyping, tooling, manufacturing support, programme management, supplier management

Locational advantage of industrial hubs

Leveraging on locational advantage of industries in Tier I cities to attract talent, resources

With the changes occurring in the global manufacturing space, the Indian ER&D sub-sector has become more dynamic and flexible to respond to changing customer needs across the full spectrum of product lifecycle.

Key

Tre

nds

in t

he E

R&

D

Sub-

sect

or

The ER&D sub-sector in India employs about 3,00,000 engineers across the country. While major part of the workforce is hired locally, 3-4 percent of this is also getting hired from other geographical locations for providing on-site support. Key talent trends in the sub-sector are as follows.

Shift in talent model from designation-based to role-based Development of skills in high-growth areasDevelopment of strong partnerships with universities and other institutions Increase in domain-specific hiring Increased requirement in Product Design, PLM, R&D Increase in talent in Energy and Utilities, Medical Devices, etc.

ER&D sub-sector is very knowledge-intensive and requires a lot of specialised skills across an array of occupations. It requires the employees to be constantly focused on innovations. The sub-sector offers its employees learning opportunities through different sources.

Emerging Talent Trends

Learning Opportunities

Certifications

Training materials

(online/class room)

Focused learning

programmes

On-the-job learning

opportunities

Occupational Analysis for Engineering and R&D18

Industry Knowledge and Skills

The availability of a skilled talent pool with strong communication skills and English language capabilities makes India a favoured country for hiring.

Qualifications, Knowledge and Understanding

SkillsWhile the core skill still remains pure engineering, there is an increasing focus on hiring candidates with knowledge of design principles and work experience in CAD/CAM and CFD.

unique ‘Occupations’

unique ‘Tracks’

unique Job roles at the Entry Level

unique Job roles at the Middle Level

unique Job roles at the Leadership Level

Problem solving | Analytical skills | Communication

Strong knowledge of design principle | CAD/CAM/CFD skills | Simulation and prototyping |

Full product development | Product lifecycle management | Verification and validation |

Product design and optimisation

Key Generic Skills

Key Functional Skills

Professionals are expected to grow in D

omain,

1315

1648

54

In Summary

Technology, Process and Project Managem

ent

Educational qualification, especially engineering, is the main criteria for absorbing workforce

A significant focus is also placed on the analytical ability of the individual

Functional skills and domain expertise are often added through rigorous on-the-job training

Lateral hiring happens at many levels, and movement across organisations is not uncommon

Many multinationals are also queuing up to hire PhD scholars for their GICs located in India

12

34

5

Occupational Analysis for Engineering and R&D 19

The major industry verticals and service offerings have been captured in the following table.

Industry StructureEn

ergy

an

d U

tiliti

es

Con

stru

ctio

n &

Hea

vy

Engg

. (C

&H

E)

Sem

i–C

ondu

ctor

Indu

stry

Ve

rtic

als

Eng

inee

ring

Ana

lysi

s

Emer

ging

Ve

rtic

als

Emer

ging

O

ccup

atio

ns

Occupations in the ER&D Sub-sector

Pro

duct

Eng

inee

ring

Des

ign

Pro

duct

Man

ufac

turin

g S

uppo

rt

Pro

duct

Life

cycl

e M

anag

emen

t (P

LM)

Sof

twar

e Te

stin

g

Qua

lity

Ass

uran

ce a

nd E

ngin

eerin

g

Tele

com

Aut

omot

ive

Con

sum

er

Elec

tron

ics

Sof

twar

e D

evel

opm

ent

Med

ical

D

evic

esA

eros

pace

Occupational Analysis for Engineering and R&D20

For most entry-level job roles, there is a possibility of a vertical or horizontal movement in their tracks and also into other occupations.

TracksOccupation Entry-level Job Roles

Occupations, Tracks and Verticals

Engineering Analysis Engineering Analysis Design Engineer - EA Engineer Trainee

Hardware Development Hardware Development Hardware Engineer Engineer Trainee

Software Development Software Development Software Engineer Engineer Trainee

Product Engineering Design Product Engineering Design Design Engineer Engineer Trainee

Product Manufacturing Support

Product Manufacturing Support Design Engineer - PMS Engineer Trainee

Product Marketing Product Marketing Market Research Associate

Management Trainee

Product Lifecycle Management

Product Lifecycle Management Engineer - PLM

R&D R&D Research Associate

Software Testing

VerificationTester/Test

Engineer - Software Engineer Trainee

Validation

Hardware Testing

VerificationTester/Test

Engineer - Hardware Engineer Trainee

Validation

Quality Assurance and Engineering

Quality Assurance and Engineering Quality Engineer Engineer Trainee

Technical Documentation/Writing

Technical Documentation/Writing Technical Writer

Technical Support Technical Support Associate Operations Engineer

Associate Network Engineer

Occupational Analysis for Engineering and R&D 21

The horizontal career movements from one occupation to another occupation within the sub-sector, and to another sub-sector or to another industry occurs typically at Middle or Leadership levels after a professional has acquired expertise in one particular occupation or more than one related occupations at Entry Level.

Horizontal MovementsOccupation

To Other Occupations To OtherSub-sectors To Other Industries

Product Manufacturing

Support– Aerospace, Automobile,

Electronics and HardwareEngineering Analysis

– – Semi-conductor, Consumer Electronics, TelecomHardware Development

– ITS, SPDSemi-conductor, Consumer

Electronics, Telecom, AutomobileSoftware Development

Product Lifecycle Management – Aerospace, Automobile, Heavy

MachineryProduct Engineering Design

– ITS -Software Testing

Product Lifecycle Management –

Aerospace, Automobile, Electronics and Hardware,

ConstructionProduct Manufacturing Support

– – Semi-conductor, Consumer Electronics, TelecomHardware Testing

– SPD Aerospace, Automobile, TelecomProduct Marketing

Testing ITS, SPD –Quality Assurance and Engineering

– SPD Aerospace, Automobile, Electronics & Hardware, TelecomProduct Lifecycle Management

– ITS, SPD –Technical Documentation/Writing

– – Aerospace, Automobile, Electronics & Hardware, EnergyR&D

– ITS, BPM –Technical Support

Horizontal Movement

Occupational Analysis for Engineering and R&D22