More offshoring by aerospace cos

Bangalore: Aerospace companies, including Indian aviation majors, are coming out with new business models as they seek high levels of design and production. Long-term contracts by offshoring and outsourcing work to private firms and SMEs in India is one among them.
Airbus, the world’s largest plane maker, for instance, is planning to offshore 20% of its overall engineering work, and a major chunk of it will go to India followed by Russia and China, Airbus Engineering Centre head Eugen Welte said at the Aerospace Supply Chain Symposium held at the Indian Institute of Management Bangalore (IIM-B), on Saturday. “As we are getting the right skills, we will grow engineering strength to 400 by the year 2012, which is quite aggressive by European standards,” Mr Welte said.
He said Airbus’ parent European Aeronautic Defence and Space Company (EADS) has started research and development in India, where it will form new partnerships with Indian institutes, laboratories and universities. Also, plans for a stateof-the-art EADS campus, frozen for some time now, are taking shape.
Airbus, which counts Quest Global, HCL and Infosys among its preferred vendors in India, has started projects such as flight management system and simulation here. “Now, we will be doing more high-end work dealing with aerodynamics, ” he said. Dr Roger Moser, faculty at IIM-Bangalore, said that the work offshored by companies such as Airbus may be worth a few million euros right now, but in coming years it would turn into a few hundred million euros.
12/10/09 Peerzada Abrar/Economic Times

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Categories: Foreign Oct 2009, Indian Aviation- In General Oct 2009