India-based TVS Launches Engineering Outsourcing Service
India-based TVS Launches Engineering Outsourcing Service
Jason Sandefur
The TVS Group, which owns India-based Sundram Fasteners, has launched engineering design services, touted as the next biggest outsourcing opportunity for India following Information Technology services.
The Economic Times reports that TVS tapped IT hardware architect Gopal Srinivasan, director of Harita Infoserve, to head the project. Harita Infoserve has a team of 230 engineers with a development center in Bangalore and a wholly owned subsidiary in Troy, Michigan, as a near shore facility. The company caters exclusively to the global auto industry. Harita already boasts of clients like General Motors, Eaton, Textron, Federal Moghul and Johnson Controls in the US; GE Digital and Oerlikon in Euorpe; Hitachi in Japan; and Indian companies like Tata Motors, Motorola and Ashok Leyland.
“We are committed to making India the design services hub for the global automotive industry,” Srinivasan stated. “Harita has been involved in developing applications in the areas of instrument clusters, vehicle control and remote diagnostics.”
Many global automobile OEMs are pushing their Tier I and II suppliers to participate in the process of research and design engineering for their future products, cutting R&D costs for the OEMs. “This new trend has resulted in tier I and II suppliers outsourcing design engineering services from third party service providers. Many OEMs are also open to this option. When this service is outsourced offshore from a country like India, the customers could expect a cost saving of five to six times,” noted Srinivasan.
The global automotive industry spends an estimated $12 billion each year on design. The outsourcing potential is pegged at $5 billion annually. harita.com �2004 FastenerNews.com
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