any deal above usd 50 million is considered a large one in the engineering services spacebengaluru while it services slowed down in financial year 202223 and sharply so towards the end of the year the year was a robust one for pureplay engineering services providers kpit technologies revenue grew 367 in constant currency cyient services revenue grew 302 and that of tata elxsi grew 249 analysts who track the product engineering space say the segment is in a bright spot ray wang ceo of constellation research says the demand to digitise products and monetise them is driving the growth for these companies manufacturers realise they have to digitise in order to succeed retailers realise they need digital experiences governments are moving to improve citizen services everyone needs product engineers says wang advt pareekh jain ceo and lead analyst at pareekh jain consultancy says the need for product engineering in the automotive space like the deals kpit technologies bagged from honda and renault is the key driver for the growth of some of these companies and that will continue into this year kpit technologies recently signed a deal worth usd 250 million with honda and a usd 100 million deal with renault to work on their softwaredefined vehicle programmes any deal above usd 50 million is considered a large one in the engineering services space rd is about 5 of sales of traditional auto firms while those like tesla invest a much higher percentage to compete against the likes of tesla traditional firms need to increase their rd budget but in the last couple of years auto companies sales are down so their rd budgets are down but the need to spend is more so auto firms are outsourcing it to these tech companies jain saystata elxsi in march signed a contract with alps alpine a leading japanese manufacturer of electrical components and invehicle information systems to establish a global engineering centre gec at its campus in thiruvananthapuram the design and engineering teams in the gec will focus on developing nextgen digital technologies for connected infotainment body electronics sensing and communication technologies autosar platform development and cybersecurity and support alps alpine in its strategic goals of global market expansionthe ongoing financial year is also expected to be good for these companies while kpit has predicted a growth of 27 to 30 cyient services has said it expects to grow by 15 to 20 thats way more than what it services companies have forecast for the year infosys for instance has guided for a constant currency revenue growth of 47 by veena mani published on jun 5 2023 at 1202 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context