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'India's tech sector poised to grow'

India's embedded technology sector is booming with experts predicting a $8-11 billion growth for the industry by 2008.

india Updated: Feb 13, 2006 17:24 IST

India's embedded technology sector is booming with experts predicting a $8-11 billion growth for the industry by 2008.

"In 2004, Indian IT companies had earned around $2.3 billion from product engineering services, including embedded software and offshore products," George Johnson, Director of Infinite Exposition, organisers of the three-day global conference on embedded technology being held here said, quoting a Nasscom study.

According to Nasscom-McKinsey report, the current global potential was estimated to be around USD 25 billion and is fast growing at 20-30 per cent, he said.

"The embedded technology in India is witnessing a parallel increase with the growth in consumer goods, cell phones, computers and automotives," according to Ganesh Guruswamy, Director and Country Manager, Free Scale Semicondcutor India Limited.

With India being one of the largest consumer markets, the application of embedded technology in the growing consumer goods sector had boosted this industry in a major way.

"India was also one of the largest producers of two wheelers, which meant ample scope for incorporation of embedded technology in this sector. The four wheeler industry which was constantly introducing new products in the market had also seen the application of the technology through the features like the anti-lock break system, engine control system among others," he said.

Another sector which was embracing the technology in a massive way was the toy industry, said Jayaram Krishna, CEO and Director, American Megatrends India.

The defence sector was another area where the technology had been incorporated to meet the growing demands for security and modernisation of equipment.

However, the biggest challenge before this growing industry was the demand for trained core engineers, said Guruswamy.

The current curriculum unfortunately merely focussed on theory with many, churned from this industry, lacking in the practical skills of core engineering, Jayaram said.

The result was that most of the firms spent a couple of years training personnel in this sector, resulting in waste of valuable time.

"Ready trained and skilled core engineers will mean that we could directly absorb them and produce results as well as agument overall productivity," Guruswamy said.

The predicted demand for core engineers for the embedded technology sector could be over the 5000 mark annually, Guruswamy said, giving a rough estimate.

Another challenge facing this industry was localising the applications to suit the local needs. Citing an example, Guruswamy said the power shortage had resulted in a demand for invertors and the use of embedded technology in this field could be enormous.

Similarly, the local needs of the Indian consumer market relating to white goods, computers and other products also meant that there was more and more work needed to be done to ensure that the technology addressed the local needs of the Indian consumers, he said.

First Published: Feb 13, 2006 17:24 IST