The A&D Market Turns to India

From an industrial manufacturing and global sourcing perspective, there's no doubt that the India, inc. tide is rising. But if we drill-down on the A&D market specifically, the waves are really starting to climb to new heights. Consider how, according to DNA India, an Indian news source, that "Pratt & Whitney has firmed up plans to outsource over $100 million worth of components and design work to Indian vendors over the next five years." According to the story, Pratt will "expand its relationship with Larsen and Toubro (L&T), Hindustan Aeronautics Ltd (HAL), Infotech Enterprises Ltd (IEL) and Tata Advanced Materials Ltd (TAML) to outsource engine components, tools, design analysis work and composites." This announcement comes on the heels of the release of a regional study that notes the "Indian aerospace technology outsourcing market, which is currently at US $155 million will reach US $1 billion." This study, by research firm RNCOS, notes that the major areas of Indian A&D growth will focus on control system design, embedded development, high level aeronautical system design, simulation, testing devices, cockpit equipment support software, air traffic management systems, and composite structuring.

The rise of outsourcing agreements for complex, manufactured components -- in India and beyond -- will no doubt bring with it the need for a new level of collaborative design and sourcing capabilities to coordinate and share information between different tiers in the supply chain in the pre-production process. Fortunately, there are some innovative new technologies on the horizon which promise to bridge the design and sourcing gap -- and then some -- relative to past approaches. In the coming months, as I talk to some of these providers, I'll share what I learn on Spend Matters.

Jason Busch

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