Smart car revolution: Faster growth of Tesla and other companies disrupting the automotive sector may prove to be a boon for Indian engineering and research & development (ER&D) service providers, says a new study. Disruption in business model and increased focus on research and development propelled by companies such as Tesla, Uber, Lyft, Grab and Ola in the automotive space are likely to lead to a “windfall of deals” in the ER&D sector over the next two-three years, a report by services research firm HfS Research. Companies such as TCS, HCL Technologies, Infosys, L&T Technology Services, Tata Technologies and others are expected to see emergence of automotive as the biggest contributor in ER&D services. This segment broadly provides solutions for connected cars to smart factories of tomorrow, which includes embedded systems, internet of things, product engineering.“We predict there will be few big deals ($50 million+) in automotive in next two to three years,” said Pareekh Jain, senior vice-president, engineering services, at HfS Research.Early this month, TCS bagged a large deal from French carmaker PSA, which aims to bring in smart cars in the Indian market in a couple of years.”We expect few more such deals,” Jain said. “Factors such as technology change (existing car models to autonomous cars, electric vehicles, or connected cars), high R&D spending, business model disruption, (and) entry of technology companies (like Google and Apple) will push automotive sector to partner with ER&D service providers,” he said.
Source: Economic Times
For more news updates Follow and Like us on Facebook