Sundip Apte said product development has rising 10-fold from 2001 showing US dollar 300 million to over US dollar 3 billion in 2005, he assume the rising rate of offshoring product development to outsmart that of traditional IT services. In last three years more then 200 product development companies are jumped in the offshore bandwagon and established their presence in India, either through their own captive procedure or outsourcers. The rising ratio in this segment has cover traditional offshore IT services.

Companies like Sasken, Persistent Systems are focusing on outsourced product development, while Motorola and Cisco have wide teams focusing on product offshore software development in India. This segment is also predictable to increase the next boom for technology professionals finding challenging roles, close to one lakh professionals, this segment in India is expected to offer an over million jobs in the near future.

Main offshoring work is now being done in India. Ferrari works closely with Tata Consultancy Services to source multi-million dollar engineering services for Ferrari's Formula one car's engine and transmission components. World's leading aerospace company Boeing has signed an agreement with leading global IT enterprise HCL Technologies for the 787 Dreamliner. Under the multi-year, multi-million dollar project, HCL will provide engineering services to aerospace company and also serve tier one suppliers for the project.

Speaking on the growth ratio of offshore product development, Apte said, hi-tech companies started offshore product development and it will spread across the IT services industries. This will fuel the demand for offshore product development skills as companies from verticals like industrial controls and automotive dive onto the bandwagon."

The segment is rising as a growing percentage of products development's value now comes from software development. In service industries like automotive, telecom, and consumer electronics the role of software and embedded intelligence, as a way to add value, continues to expand. Most product offshore development will depend on offshore outsourcing skills to compensate for their own lack of internal expertise and software development process capabilities.

For more information: Offshore Product Development Boom