India's Shifting Offshore Landscape: Surge In Engineering Jobs As MNCs Embrace Innovation
In a transformative shift, multinational corporations (MNCs) are steering away from the conventional offshore focus on IT and shared services, redirecting their attention to research, design, and engineering roles in India. This paradigmatic change not only broadens the horizons of job opportunities but also reflects a growing trend of establishing manufacturing-led global capability centers (GCCs) in the country. Among the forefront contributors to this job surge are eminent names like Mercedes Benz, Bosch, Michelin, ABB, Boeing, Airbus, Renault, Volkswagen Group, Schneider Electric, John Deere, Caterpillar, Continental, and Collins Aerospace.
Several multinational companies are reshaping their offshore hiring strategy by outsourcing research, design, and engineering jobs to India. This marks a departure from the traditional focus on IT and shared services support roles. The trend is attributed to the growing number of manufacturing-led Global Capability Centres (GCCs) being established by MNCs in India. Companies such as Mercedes Benz, Bosch, Michelin, ABB, Boeing, Airbus, and others are expected to contribute to job opportunities for mechanical, electrical, and electronics engineers. Estimates suggest that around 300,000 engineering, research, and design jobs could be created in India over the next three to four years. The demand for engineering and design talent has seen a 35-40% increase in 2023 compared to 2022.
The surge in demand encompasses various domains, including cockpit and interior design, vehicle integration, crash and safety, infotainment development, electric vehicle-battery management systems (EV-BMS), automobile software (Autosar), 3D harness design, circuit design, and high voltage wiring design. The automotive sector, in particular, is driving the demand, with India positioning itself as a manufacturing hub for green and sustainable transportation. Auto captives are expected to witness significant growth, particularly in areas to electric powertrains, artificial intelligence, battery technology, and advanced driver assistance systems (ADAS). The demand is not only limited to the automotive sector, as global aircraft manufacturers like Boeing and Airbus are also increasing their sourcing of aircraft components from India. Despite the positive outlook, some experts express skepticism about the actual job creation in core streams of mechanical and electrical engineering. They point out the increasing influence of automation, questioning the extent of job opportunities in these fields.
As India positions itself as a manufacturing hub, particularly in the realm of green and sustainable transportation, the surge in demand for engineering talent is palpable. The advent of cutting-edge roles in aviation, automobile, and sectors has set the stage for an estimated 300,000 engineering, research, and design jobs to be created in the next three to four years. However, even amid this positive outlook, skepticism lingers among academics regarding the impact of automation on job creation in core engineering streams. The evolving landscape, nonetheless, emphasises the nation”s role in shaping the future of global engineering and innovation.
