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By Jayan CM
Next in line to BPO and KPO is EPO (Engineering Process Outsourcing), which is expected to grow 10 times over the next seven years. The EPO is also likely to promote India as a major hub in this part of the world. Industry analysts believe that if EPO maintains to keep consistent pace it is likely to touch USD 30 million.
The Indian Governments Commerce Ministry came out with a report citing that over the last couple of years (2004-06), the demand for Engineering Process Outsourcing to India has grown at a rate of 30-35 percent and this is likely to add momentum in the coming years.
A study conducted by the state-run Engineering Export Promotion Council (EEPC) says, "The global EPO market, is expected to grow at a rate of USD 110-140 billion by 2015 taking Indias share to 20-27 percent". Taking into account Indias last year (2006-07) result that touched USD 26 billion the EEPC is expecting the industry to grow substantially.
Though the EEPC is optimistic on EPO front, but also have their concern, like the government decision to obliterate the duty entitlement passbook scheme, an export incentive programme. The Indian government on the other hand has assured them of positive stance, where they will work out an alternative that would substitute the current scheme.
The Indian government has asked the Engineering exports Process outsource firm to target market scheme to their advantage in promoting exports to the identified markets, especially to the Commonwealth of Independent States (CIS).
The government in order to help EPOs to concentrate on developing the market has added 16 new destinations, including CIS this year in the focus market.
The government also cautioned the Indian export including engineering exports, about the likely situation where they could face increased non-tariff barriers, considering that average tariffs for industrial products in all countries is headed southwards.
This process has already begun for engineering products and is likely to gain greater impetus as India's share in the world exports increases in the coming years.
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