Institutional Scenario

Lack of quality faculties and facilities in most private engineering colleges/polytechnics is a cause of concern not only for the government but also for the current/passed out engineering graduates. Industry needs professionals who are capable of facing the challenges of bringing innovation into every aspect of R&D and Manufacturing in the era of modern industrial thoughts. It is rare to find an engineering graduate from self-financing institutions with adequate analysis and design skills which are essential to handle the job of engineering design and manufacturing. Hence a need for providing training in the right direction to evolve an unemployable graduate into an employable and productive professional has arisen.

Under this scenario, many private training/placement service companies mislead the unemployable graduates by providing them false information and promises. This situation again puts the opportunity seeking graduates into a mode of confusion and misery. Most engineering graduates of self financing institutions lack the vision to prepare themselves to become employable.

Industry needs an engineering graduate with a strong foundation of theoretical and practical knowledge of his chosen field. But the engineering graduates don’t meet the requirements of industry due to poor foundation in their chosen field.  This situation of vacuum in basics in the minds of engineering graduates has created an opportunity for thinkers to create opportunities for the interested and dedicated fresh engineering minds.

Industry Scenario

Today’s economy is mainly driven by Information, Communication and Technology (ICT). Advancements in the field of electronics have accelerated the operating modes of every business. Penetration of various functional electronics such as VLSI, EMBEDDED and DSP into automobile, aviation, communication, consumer and instrumentation industries ensures the evolution of world as a global village. Under such a scenario, automation of every operation and services assumes top priority. This leads to the demand for new products and services.

With the economy growing, demand for new products and services generate demand for skilled manpower in engineering and technology. Developed nations face shortage of technical manpower due to aging population. On the other hand developing nations have huge young dynamic population. Developed nations look towards India and China for young skilled manpower to support their economic activities and development. To sustain higher economic growth, domestic industries also demand huge pool of skilled manpower in the field of engineering and technology.

The Indian semiconductor design services market is predicted to grow by an annual 21.7% to $11 billion by 2010, a join study by the Indian Semiconductor Association (ISA) and IT research firm IDC says. The workforce employed by the semiconductor design services industry is seen growing to 2.19 lakh from 1.3 lakh in 2007. Growth rates for the sector in India are far more than thrice the global average of 6%. ISA Chairman S.Janakiraman attributed the growth momentum to the increasing maturity of India companies, the availability in the country of advanced semiconductor tools and technologies as well as higher confidence with regard to issues relating to intellectual property rights. The growth of opportunities in the domestic semiconductor market could see some localization of electronic product design and manufacturing, Mr.Janakiraman observed.  

Future Growth

According to Nasscom and McKinsey report, the addressable EDS (Electronic Design Services) market currently being serviced is estimated to grow to US $ 50 billion by 2020. Indian EDS market has the potential to grow by an annual rate of 21.7% which is more than the global average of 6% to US $12 billion by 2010 from US $6 billion in 2007 and to US $50 billion by2020.  
" EDS outsourcing is a different field altogether than the IT/ITES outsourcing as it requires special engineering applications. With EDS becoming the next big thing in Indian outsourcing business, engineers will have big opportunities in front of them,” said Icenet CEO and MD, Chirag Mehta. Unlike IT/ITES services that require an engineer to be trained in information technology applications, EDS require proper engineering training as it is more of an engineering applications based job.             
Global spend on engineering service is projected to be US $1.1 trillion by 2020.The global spend has been growing at a higher rate keeping in sync with the increased emphasis on new product development and innovation. Some sectors, such as telecom (it will account for 8% of spend), will outperform in terms of the engineering spends, driven by the high pace of new product introduction and the global nature of their products. Refer to the table below


Global Spend on Engineering Service by 2020

Sector                                 Engineering spend (in %)  



Consumer electronics 




Computer systems


Industrial automation


Medical Devices






Construction Industry














 Source: NASSCOM      
Forecasts by NASSCOM clearly indicates that electronics and allied sectors such as Semiconductor, Consumer electronics, Telecom, Computer systems, Industrial automation, Medical Devices and a portion of automotive sector i.e. automobile electronics will constitute around  40% of engineering services spend in 2020. Future dominance of electronics in every economic activity will be fueled by the demand for automation of activities at all levels. This kind of requirement for rapid automation of all sectors will put the demand high for electronic design Engineers


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