Digital engineering to grow substantially, may account for 50-60% of ER&D revenue: Report

New Delhi: India has emerged as a leading destination for digital engineering, and its share in the overall ER&D revenue is expected to "grow substantially" from the current 28-30 per cent, according to a report by Nasscom-Deloitte.

In the field of engineering, research and development (ER&D), digital engineering (DE) is gradually displacing traditional engineering as the main force, said the report titled 'the future growth sectors in digital engineering'.

National Association of Software and Services Companies (NASSCOM) President, Debjani Ghosh said, “India is advancing into the fourth industrial revolution with an optimistic digital transformation revenue amounting to 50-60 per cent in overall ER&D revenues in the coming years".

India, the report noted, has already established a strong presence in this market due to its growing talent pool, developing environment for partnerships and favourable encouragement towards this industry from government institutions.

"India today has emerged as a leading destination for digital engineering," the report said. The share of digital engineering in the overall ER&D revenue in India is in the range of 28-30 per cent as of FY22.

India is becoming more popular as a location for digital engineering due to various factors.

The availability of key technologies like AI (Artificial Intelligence), cloud technology, blockchain, automation, and IoT (Internet of Things) has transformed businesses. This, in turn, is giving rise to digital strategies for sustainable and smarter ways to operate.

Industries such as banking, financial services and insurance, healthcare, consumer packaged goods and retail have witnessed a gradual increase in Digital Engineering.

"Disruptive technologies are currently delivering on their promise to alter these industries and establish them as pillars of the future," the report observed.