Engineering services providers in India experienced a strong performance during a slowdown in the IT services sector during the financial year 2022-23.Â
KPIT Technologies saw a 36.7 percent revenue growth in constant currency, Cyient Services witnessed a 30.2 percent increase, and Tata Elxsi recorded growth of 24.9 percent.
Experts analyzing the product engineering space have identified it as a bright spot.
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Ray Wang, CEO of Constellation Research, highlighted the demand for digitizing products and capitalizing on them as the driving force behind the growth of these companies.
Wang emphasized manufacturers, retailers, and governments increasingly recognize the need for product engineers to succeed and improve services for citizens.
Pareekh Jain, CEO, and lead analyst at Pareekh Jain Consultancy, highlighted the automotive industry’s need for product engineering, exemplified by deals with Honda and Renault, as a key growth driver for these companies.
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Recently, KPIT Technologies signed a $250 million deal with Honda and a $100 million deal with Renault to work on software-defined vehicle programs.
Jain clarified that traditional auto firms, aiming to enhance their R&D budgets to rival Tesla, are outsourcing these needs to tech companies amidst recent sales declines.
Tata Elxsi also made significant strides by signing a contract with Alps Alpine, a prominent Japanese manufacturer, to establish a global engineering center in Thiruvananthapuram.
KPIT Technologies has projected a growth of 27-30 percent, while Cyient Services expects a growth rate of 15-20 percent, surpassing the forecasts of IT services companies for the year.
