India's Software Exports to the Aerospace Industry Taking OffJune 10, 2011
Indian software exports to the aerospace industry exceeded $500 million in 2010-2011, according to an article in The Hindu Business Line, a prominent Indian newspaper. The software helps Aerospace companies with engineering services. That number is expected to continue rising. “This niche segment is growing at a compounded annual rate of 20%,” said B.V.R. Mohan Reddy, an executive council member at Nasscom, a trade organization representing the Indian software industry. Reddy, also a senior executive at Infotech Enterprises, cautioned that the export rate could always slow abruptly given the cyclical nature of the industry, the article noted. Still, like the aviation industry in general, the Indian aviation software industry is counting on strong growth in the aviation industries of Russia, Brazil and China to sustain a global upward trend. India exported about $59 billion in software overall in 2010, compared to just $6 billion 10 years ago. The country expects that number to jump to $225 billion by 2020. One potential pitfall that could stall growth: a talent shortage. The “IT industry employs [2.5 million] engineers directly and [1 million] people indirectly. But the industry needs [7.5 million] more engineers by 2020 to support the anticipated growth,” said Reddy. Infotech is working with Jawaharlal Nehru Technological University to build an Avionics curriculum to turn out engineers that could plug into the avionics industry. Infotech at present has 2,500 employees focused on aerospace with another 500 in avionics. “We are adding 20% to this number annually,” Reddy said. |
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