By financial year 2022, engineering R&D revenues are estimated to register a compound annual growth of around 8% with multinationals driving growth across products and services, said property consultant Cushman & Wakefield.
Going forward, Engineering R&D revenues are expected to surpass revenues from business process management (BPM) services, thereby consolidating the former’s position as the second-highest contributor to software revenues, after information technology.
Moreover, Indian technologies and applications such as artificial intelligence, cloud, predictive analytics smart devices, etc. As of financial year 2019, Engineering R&D centres accounted for around 20% of cumulative software revenues multinational corporations caught routed around half of Engineering R&D revenues.
This is expected to have a favorable impact on the development of the RMD systems. In India, as well as, job creation over the medium to long term.
According to Cushman & Wakefield, several tier-II cities are showing potential for the establishment of Global Capability Centres (GCC). Most of these are state capitals and are able to attract fresh talent besides better connectivity, superior physical and social infrastructure, while these cities are also ranked higher on ease of living and doing business.
The Indian GCC ecosystem is being driven by digital engineering or Engineering R&D centres across several industry verticals, such as software, automotive, and banking financial services and insurance over the medium to long term.