In a significant departure from traditional outsourcing patterns, multinational companies (MNCs) are increasingly shifting their focus to India for research, design, and engineering roles, expanding beyond the realm of conventional IT services. This transformative trend is poised to unlock employment opportunities for mechanical, electrical, and electronics engineers, propelled by the establishment of manufacturing-centric global capability centers (GCCs). Major players in this job creation landscape include esteemed companies such as Mercedes Benz, Bosch, Boeing, Airbus, and others, according to insights from consultants and industry experts.
Projections indicate the potential creation of around 300,000 engineering, research, and design positions in India over the next three to four years. Quess Digital Engineering Services, a division of Quess IT Staffing, exclusively provided data estimating this considerable job surge. The emergence of new-format GCCs is at the forefront of this transformative employment landscape, with heightened demand for engineers in sectors spanning aviation, automobiles, tires, component manufacturing, and electrical components.
Key sectors driving this demand include cockpit and interior design, vehicle integration, crash and safety testing, infotainment development, electric vehicle-battery management systems (EV-BMS), Autosar (automobile software), 3D harness design, circuit design, and high-voltage wiring design. The demand surge has been particularly noteworthy in 2023, with a 35-40% increase in demand for engineering and design talent compared to the previous year.
This burgeoning demand is set against the backdrop of India positioning itself as a manufacturing hub for environmentally sustainable transportation. Auto captives, including prominent names like Mercedes Benz, Volkswagen Group, and others, are anticipated to witness substantial growth in their businesses in India over the next five years. The need for innovation and product development, especially with the push toward electric vehicles, positions India as an opportune destination due to its vast talent pool and cost advantages.
Global aircraft manufacturers like Boeing and Airbus are also contributing to the surge in demand by increasing their sourcing of aircraft components from India. The scope of engineering jobs is expanding into critical areas such as electric powertrains, artificial intelligence, battery technology, and advanced driver assistance systems (ADAS). Simultaneously, there is a noticeable uptick in demand for embedded engineering roles, encompassing infotainment systems, battery management systems, and hardware development. Mechanical engineering, too, is experiencing increased demand in areas such as cockpit, interior and exterior design, and lightweight body design.
This multifaceted surge in demand is expected to generate employment in three primary areas: engineering and product development, shared services (HR, procurement, finance, etc.), and global IT support. Experts highlight that individuals at the intersection of mechanical, electrical, and electronics engineering are poised to be in high demand. Some companies are even exploring talent acquisition from tier 2 and 3 engineering colleges, providing training before deployment.
Despite this optimistic outlook, academics, particularly from premier institutions like the Indian Institutes of Technology (IITs), express skepticism about the creation of cutting-edge roles and emphasize the potential impact of automation on job creation. As the engineering landscape in India undergoes this transformative shift, the evolving nature of offshored jobs marks a pivotal moment in the country’s journey toward becoming a global hub for advanced engineering and design roles.
