Date : 9 Nov 2009

This coming Saturday, Belgaum will see the formal launch of a 300-acre aerospace SEZ. This is not the sort of SEZ that the government announces and nobody ever hears anything about it for a long time. This is one where land has been allotted, and work has begun, including an aircraft surface treatment facility set up by Quest Global, the promoters of the SEZ, and Magellan Aerospace. A sheet metal manufacturing facility and a precision machining facility for aircraft too are operational. On Saturday, more partnerships in aerospace design and manufacturing will be announced. 

Aravind Melligeri, who co-founded Quest in the US in 1997 with a long time classmate, Ajit Prabhu, declined to say what those partnerships were; he wanted to save the thunder for the weekend. All he would say was that the idea of the SEZ was to offer an aerospace customer everything – from design to manufacture of components and systems – in one place. 

It’s not surprising that somebody thinks it’s worthwhile attempting a project of this nature and scale. Many are now building on the base that public sector units like HAL and NAL have laid in Karnataka, most notably in the area of design services, but increasingly also in manufacturing. The country has emerged as a major global design centre, with international majors like Airbus, Boeing, Emerson, Snecma, Honeywell, GE Aircraft Engines and United 

Technologies having set up India operations and outsourcing their engineering design requirements either to in-house centres or to third party engineering services partners like Quest, HCL, Infosys and Hyderabad-based Infotech Enterprises. 

TECHNOLOGY EXPERTISE 

For Airbus, its Bangalore engineering centre is the only one outside Europe that does what is called `non-specific work’. These are works that are not specific to an aircraft part, but instead involves issues related to aerodynamics, aerothermics (temperature, ventilation), aeroelastics (effect on structure, such as vibration etc), and simulation of flight management. Eugen Welte, CEO of Airbus Engineering Centre in Bangalore, says his 130-strong team (expected to expand to 210 by next year) has developed new tools to create better aircraft and speed up aircraft development. 

Work is on to make pilot training simulation so realistic that the pilot’s first actual flight is a breeze. Work is on to simulate to perfection a new aircraft’s flight, so that when it actually takes off for the first time, it’s a near perfect flight. Sandeep Thakur, part of the structures team in the centre, says his team is involved in identifying redundant components and finding ways to reduce dimensions of parts in a way that they can still carry the same load. “These can reduce the time to manufacture the aircraft and increase fuel efficiency,” he says. 

Valmeeka Nathan, Infosys’s head of product engineering, points out that older aircraft manuals and engineers tended to overdesign aircraft in order to meet safety and other regulations. “Regulatory requirements created inefficiencies in the form of extra metal weight, higher fuel consumption,” he says. India’s software and engineering expertise is able to come up with new tools and solutions that obviate such overdesign and yet ensure the same levels of safety. “Through automation and our knowledge of software tools, we are also able to bring better designs so that customers can avoid certain intermediate steps in the production process and thus reduce tooling costs,” says Nathan, whose division claims to have touched almost all recent commercial aircraft programmes, including business jets, and all parts of an aircraft, including landing gear, fuselage, wings, avionics, inflight systems, and electrical systems (an exception being the engine). 

Boeing, which set up a research and technology centre in Bangalore in March this year, is working with NAL on alloys that are corrosion free, alloys that are stronger than current materials, but yet lighter. Dinesh Keskar, president of Boeing India, says other work being done in India includes computational fluid dynamics – the use of computers to study the impact of force on almost every single point on an aircraft surface -- and a project with HCL to create software to validate the 787’s flight control system. 

Quest, which has 1,000 employees in India and which has dedicated facilities here for GE, Rolls Royce and EADS, is designing and building the rig to test the Airbus 350’s nose landing gear. “We are also supporting Rolls Royce in its engine work for the A350, and are even helping Airbus get more value out of its older aircraft like the A320. We are like an extension of the customer’s engineering organization,” says Melligeri. 

Pavan Kumar, MD (south Asia) of Altair, a company that offers computer-aided engineering (CAE) solutions to the aerospace industry, says airline OEM's are leveraging the best in class design/manufacturing skills across the globe. “They are aggressively using more simulation throughout their development processes. The growth and expansion of our Indian team is consistent with the growing adoption of CAE that we see in the global aerospace industry.” 

OFFSET ADVANTAGE 

Some of the work India is getting is also the result of offset obligations of aircraft manufacturers. Typically, in aircraft deals, the government that buys aircraft obliges the seller to get some part of its work done in the country. The Air India and Indian Airlines deals with Airbus and Boeing a few years ago imposed such obligations, as will some big defence aircraft deals in the pipeline. Boeing’s total offset obligation currently in India is about $2.3 billion. This partially explains the company’s announcement last month that HAL will produce flaperons for its 777 model at its facility in Bangalore. A flaperon combines aspects of both a flap (used to control lift) and ailerons (used to control roll) and are instrumental in controlling the aircraft's manoeuvrability in flight. The company had previously said that the Tata Group would be making floor beams for the 787 Dreamliner. 

Quest is manufacturing the 787’s shackle – the support arm for the landing gear – in its facility in Whitefield. Melligeri says it’s probably the first private sector player in India to set up a facility to cut titanium of this magnitude (the 787 is made mostly of titanium, instead of the conventional aluminium). He now smells a big opportunity emerging from the Indian Air Force’s expected $10-billion order for Medium Multi-Role Combat Aircraft (MMRCA). The offset obligation in this is 50% of the value of the order. The Belgaum SEZ is designed precisely for such opportunties. (With inputs from Anshul Dhamija) 

by Sujit John

Source: 

http://epaper.timesofindia.com/Repository/ml.asp?Ref=VE9JQkcvMjAwOS8xMS8wOSNBcjAyMjAw&Mode=HTML&Locale=english-skin-custom

Date : 27 Oct 2009

Aravind Melligeri is betting against conventional wisdom.

Bangalore is India’s aerospace hub, where the country’s military plane maker Hindustan Aeronautics Ltd (HAL) is based and the work on a homegrown plane and space research is centred. This, in turn, means the bulk of the vendors with the ability to make precision parts and systems for aeroplaneszx are located around this city.

But for Melligeri, co-founder of Quality Engineering and Software Technologies Pvt. Ltd, or QUEST, an engineering services firm, the next aerospace manufacturing destination is Belgaum.

QUEST has set up a 300-acre special economic zone (SEZ) for aerospace manufacturing in the town bordering Maharashtra, around 500km from Bangalore, among the first such facilities to begin operations.

“Belgaum has a manufacturing culture. Historically it was the automotive backend for Pune,” says Melligeri. “It has over 300 foundries and machining shops. It is also a strategic location.”

In manufacturing, “logistics is a key and Belgaum is equidistant from Mumbai, Hyderabad and Bangalore and around two hours’ drive from three airports, including Goa”, he says.Not everyone is buying the idea. A.K. Saxena, managing director of Navv Avia Technologies Pvt. Ltd, an aerospace consultancy, says the distance and skills needed for the aerospace industry will be an issue.

“They may be right. But the big names may not go to Belgaum because of the distance, they would prefer the known cities,” says Saxena, a former managing director of HAL.

For QUEST, which has invested Rs150 crore in the SEZ and three factories including a joint venture with Magellan Aerospace Ltd, a vendor for plane makers such as Airbus SAS and Boeing Co., being away from the big cities is an advantage. 

“People are disciplined and there is enough talent to train,” says Melligeri. “At the end of the day, you don’t see an aerospace manufacturing facility in London or New York.” 

For QUEST, founded in 1997 by Melligeri and partner Ajit Prabhu as a services firm offering engineering design for power generation equipment makers, aerospace manufacturing is just a three-year story. Prabhu is in the US, leading the engineering services operations, while Melligeri takes care of manufacturing.

The company got into aerospace design services after venture capital firm Carlyle Group invested $6 million, (around Rs28 crore today), in 2003. In 2007, both the promoters bought back Carlyle’s stake, to expand into manufacturing, as they saw firms such as Airbus and Boeing outsource more work to low-cost countries such as India. Melligeri did not reveal how much they paid to buy back the stake. 

QUEST’s focus also coincided with India becoming a major market for global aerospace and defence firms. India will import arms, including fighter planes and helicopters worth at least $30 billion by 2012, according to the Associated Chambers of Commerce and Industry of India a lobby of trade associations. 

A third of this is expected to be spent in India by foreign firms, following a 2005 offsets policy that mandates foreign contractors to source components and systems from local vendors for at least 30% of the value of orders worth at least Rs300 crore. This is to boost the local aerospace industry, which is still nascent, despite designing a few homegrown planes and HAL’s history of building fighter planes under licence.

India’s aerospace manufacturing exports in the year to March were around $200 million. HAL accounted for more than half of that figure, according to Melligeri. In comparison, the global commercial aerospace industry is worth $90 billion a year.

“There may be small suppliers which HAL has built, but that is not really scalable. For that, it needs a supply chain,” he says. QUEST is building the supply chain, even asking rival firms to set up units, so scale could be built to service global customers and tap the business opportunity they present.

A supply chain expert says the move by QUEST to offer manufacturing components and systems would help it to battle competition from other low-cost countries such as China, the Philippines and Malaysia. 

“In the next few years, only service providers who provide end-to-end (solutions) would be preferred. For high end (engineering) services, you need to understand manufacturing,” says Roger Moser, who heads the chair on sourcing and supply management at the Indian Institute of Management, Bangalore. The chair has been endowed by the European Aeronautic, Defence and Space Co., or EADS, the parent of Airbus, and Supply Chain Management Institute.

“In the Indian aerospace industry, where you have so many small players that hurts its efficiencies, you need to have a few companies such as QUEST that will act as system integrators at the small level,” he says.

But to achieve that, QUEST is raising additional funds of $50 million by December to invest in its operations. Melligeri did not reveal from whom the money is being raised.

In the year ended March, QUEST earned revenue of $85 million, of which manufacturing contributed $6 million. In fiscal 2010, it expects revenue will grow to $110 million, of which manufacturing will be $10 million.

“Manufacturing, with a lower base, will grow 80% in the next three years. As for engineering services, it will be around 30% growth a year. It is a fairly good target and aligned with strategic customers. They look at us for giving the next solution,” says Melligeri.

Date : 12 Oct 2009

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. 

Bejoy George, chief marketing officer at tech company QuEST Global, said there is a need for a national aerospace policy in India to encourage this sector, as India can expect to win about 25% of offshore engineering spend, or about $50 billion, due to various advantages. 

Not just western companies, but even Hindustan Aeronautics (HAL), India’s largest aerospace firm, is seeing the need to increase outsourcing to private companies. HAL, which currently outsources just 8% and does 92% work in-house, has plans to increase outsourcing to 25% and do 75% work in-house in the near future, according to KG Subramony, HAL general manager. 

“The opportunity is huge as defence procurement is Rs 25,000 crore per annum,” he said. 

HAL chairman Ashok Nayak said the process of transformation has begun in the aerospace industry and there is a need to get the support from the Indian private firms and SMEs. He said HAL wants toshed the military tag and enter into the civil market, where it can come up with innovative business models and products and develop risk-sharing relationship with private firms. 

According to Jayant D Patil, vicepresident of Larsen & Toubro, in the next 15 years, one-third of the world’s aircraft will be bought in the Apac region, opening new opportunities of supply chain. 

Date : 18 Sep 2009

One of greatest Union generals in the U.S. Civil war, William Tecumseh Sherman, described the goal of effective military strategy as maneuvering so that the opposing general finds himself “on the horns of dilemma.”

That means you should force your competitor to choose to defend target A by sacrificing target B or vice-versa.

General Sherman applied this strategy repeatedly throughout the Carolinas and Georgia between 1864 and 1865. He would separate his troops into two or more distant columns. Each would threaten a different target. This prevented his opponents from concentrating their forces against him. By forcing his opponents to break up and defend multiple apparent targets, his opponents found they lacked the mass to defend any.

While Ajit Prabhu, the co-founder and chief executive officer of QuEST Global, and his team may not liken their strategy to this pattern, they have brilliantly implemented this ancient principle in what they call the “global-local model.”

As Ajit describes, “The company came to be this local-global model. It comes from the realization that people don't become smarter just by getting on a plane."

By traveling to the United States, as Ajit did, an Indian engineer can earn many times what he would earn by doing the same work in his home country. Why does he earn more? Because he is local and this gives him certain advantages.

For example, it allows him to have face-to-face contact with his clients, which lowers the risk of miscommunication. It also allows him to collaborate more efficiently with the clients' engineers, and this close proximity helps him understand the cultural context for the work.

While clients should pay for this additional value, Ajit didn’t think they should pay more for the engineer’s brains. So QuEST’s model is designed to optimize the workload by providing the collaborative client-facing work locally, and then producing the problem-solving abroad. This approach seems simple, but it cuts against the norms QuEST’s competitors have settled on.

Most of its peers either conceive themselves as local, high-value engineering firms or as low-cost outsourcing firms. While their web sites may tout otherwise, a dissection of their organizational and incentive structure clearly places them as either local or global, but not both.

QuEST, by contrast, conceived itself from the beginning as being not an Indian firm, nor a U.S. firm, but both.

"You have to find a global optimum. That's not in one location," says Ajit.

More importantly, QuEST’s management has designed its entire business around this unique conception. As a result, they have strung together a sequence of interlocking decisions in such a way that competitors cannot easily copy just one of them. Consider just a few of QuEST’s strategic decisions:

They organize as one global team: the head of sales does not always sit in the U.S.; the head of engineering does not always sit in India.

They implemented a company-wide feedback and incentive system that tracks each person on indicators of     whether he/she is successfully being global and local.

They have evolved procedures, a methodology, and a way of working that helps them efficiently collaborate across     borders, doing the local work locally and     “global” work in India.

They have a mission and vision that guides them away from conceiving themselves as Indian or American, which     keeps them true to their global mission.

Sure, competitors can copy any one of these. But to do it well, they need to copy all of these and that takes time, money and planning. Ajit and QuEST have created a multi-front attack and competitors cannot compete on the same level without losing the ground they already have.

As Ajit says, "Our strategy is something that is easy for others to understand, but hard for someone to duplicate."

Ask yourself the questions below to see how you can beat your competition by provide some services at reduced costs without hurting client relationships.

1. Is there a service or product that can be completed or purchased for less money?

2. Are there distributors that I haven’t considered?

3. Can I cut deeper into the supply chain to get better prices?

4. Can a select few "face" people handle the client relationships while the "hidden" majority    completes the work?

Source: 
http://www.fastcompany.com/blog/kaihan-krippendorff/outthinker-mavericks-out-innovate-competition/force-your-competition-defend

Date : 17 Sep 2009

The midsize service providers are moving strongly towardsthe top-pack and establishing themselves as leaders in R&D community. "The companies like Tata Elxsi, Aricent, MindTree, GlobalLogic, Polaris, Aditi, Tech Mahindra, Symphony and Sonata are fast closing in the gap with the market leaders like Wipro, TCS and HCL, as they are acting proactive regarding their business aspects and strategies after impact of recession," said Karthik Ananth, Engagement Manager, Zinnov Management Consulting.

Symphony emerged as the leader in the software vertical, followed by Wipro and MindTree in global R&D. In telecom, Aricent emerged leader followed by Wipro and HCL. HCL continued its dominance in the aerospace and defence verticals, where it was followed by QuEST and Wipro. Wipro emerged dominant in the semiconductor and healthcare verticals.

In the last few months, midsize companies established software labs, moved into partnerships with different universities to grow their businesses. To highlight the emergence of these companies among top caters, Ananth said, "A Chennai based R&D company even has a backup team of 100 employees ready in Argentina, at the time of downturn and this defines their positive approach in this downturn market."

The investments were highest in consumer electronics, semiconductors and medical equipments, as software and telecom emerged as the new areas of Outsource Product Development (OPD) in India. The midsized companies increased their focus in the domestic market in the defence, telecom and medical sectors.

In the current fiscal, with the growth of midsize companies in the global market, Indian R&D offshoring companies have emerged as the highest revenue generator with revenues between $9.9 to $10.1 billion, followed by Chinese firms with revenue of $8.5 to $8.3 billion and Russian and Central and Eastern European (CEE) firms with $1.5 to $1.7 billion revenues. The study rating included 40 companies from India, China, Russia and CEE.

The study rating is done by Zinov Management Consulting to establish a comprehensive list of the R&D companies in different geographies which included India, China, Russia and Eastern Europe.

Source: 

http://www.globalservicesmedia.com/Content/general200909177431.asp

Date : 15 Sep 2009

Last week I introduced Ajit Prabhu, the co-founder and chief executive officer of QuEST Global. My interview with him was fascinating, and during our discussion, I learned that the basic idea behind QuEST was born while Ajit was working at General Electric. Whether Ajit knew it or not, he began employing the time-tested stratagem - Exchange the role of guest to that of host.

Ajit noticed that his boss continually struggled with sustaining a sufficient supply of engineering resources. Because GE lacked sufficient full-time engineers, the company relied on relatively small, local talent agencies and consultancies to meet its demand. But more often than not, the applicants didn’t actually meet the needs of GE managers.

Ajit would hear them complain about how the managers had to sift through piles of files to only find one or two people who could actually fit the job requirements. Ajit could not resist what he saw as an exciting opportunity. He felt he could do a better job than many of these local agencies. Although Ajit enjoyed his work at GE, he was only a guest in that company. He relied on GE, his host, to support him.

But Ajit could not suppress his desire to start a business any longer. So after several months toying with the idea, Ajit met Aravind Melligeri, another entrepreneur at heart, and the men immediately clicked. Aravind agreed to take responsibility for finance and operations. Ajit would handle sales and client relations. They established their engineering outsourcing firm, QuEST, and started working for their first client, Ajit’s previous manager at GE.

They proved their worth, won more work from GE, hired more engineers, and watched their revenues grow. From the start, they earned much more from this business than they would have as employees. They reinvested the excess money into the company to fuel growth.

They now faced a critical strategic decision: how should we grow? They could either hunt down new customers or seek out new work from their current client, GE. Compelling arguments exist for seeking out new customers. This path reduces risk. A company’s revenue is more stable if it diversifies across clients and services.

But QuEST has thrived by adopting precisely the opposite strategy than the accepted norm. Instead of seeking out new customers or expanding into new services, the team focused on winning more of the same business from GE. They increased their dependence on GE, but by choosing this unorthodox approach, they triggered a strategic dynamic that has created superior competitive advantage.

With each engineer QuEST assigned to the GE account, QuEST strengthened its relationship with GE. As the relationship deepened, GE began to entrust QuEST with more complex and critical projects. After eight years, QuEST’s GE team has grown to 350 engineers.

Beyond the scope of supplying employees, QuEST has risen to be much more than an outsourcer. It works on sensitive engineering projects. It has become strategically important. It is no longer easily replaceable. Its revenue stream grows more predictable.

“Projects don't have peaks and valleys,” Ajit says. “We have long-term relationships with our clients.”

Perhaps QuEST will always remain a guest of sorts in GE’s home, but at least it is a regular one who keeps a toothbrush there and has its own room.

Date : 4 Sep 2009

Most successful people are somehow inspired to do things differently. For some it is an innovative idea, and for others it is identifying a need and filling it. For Ajit Prabhu, the co-founder and chief executive officer of QuEST Global, it was a car.

At a time when few in Ajit’s home town in India could afford an automobile, Ajit’s uncle drove one to and from his incense shop. Ajit wanted a car too. So in eighth grade, when his friends invited him to play, Ajit said no. He decided instead to work on his new business selling incense sticks, just like his uncle.

This was one of the first unconventional choices that Ajit made in his life. His entrepreneur spirit was strong and so was his desire to make a living. The value of aspirations cannot be ignored, and Ajit says that it is one of the three fundamental requirements for building a successful business.

“To build something and create some value, you have to have aspirations – that’s absolutely important,” says Ajit.

It was Ajit’s early aspirations that led him to reject the traditional path repeatedly, choosing incense over play, opportunity over predictability, throughout his entire life.

Ajit’s willingness to pursue uncommon options led him to co-found QuEST Global, an engineering consultancy  and outsourcing firm, in 1997 with one partner and one client. As of 2009, his company is approaching $100 million in revenue, employs 1,600 people across 17 countries, and services many of the world’s largest firms.

QuEST Global is a leading provider of diversified engineering services and manufacturing. The company helps customers in the aerospace, consumer electronics, healthcare, industrial products, marine, nuclear engineering, oil & gas, power generation, and transportation industries. QuEST helps cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle.

By dissecting Ajit’s uncommon ability to open up new market space, we see a clear and consistent playbook of proven strategic moves. These are options that his competitors did not see, and by employing these approaches, QuEST Global is leading its industry.

Over the next few days, I will share just a couple of the strategies that the company used to outthink its competition. QuEST Global’s dominance might come from a mere aspiration, but it was the planning and forethought of its management that has made it so strong.

Source: 

http://www.fastcompany.com/blog/kaihan-krippendorff/outthinker-mavericks-out-innovate-competition/find-inspiration-and-create-a

Date : 20 Aug 2009

BANGALORE: Bombardier, the world’s third biggest aircraft maker, has invited tech vendors to bid for an outsourcing contract potentially worth up to $200 million over next few years, as the company seeks to increase outsourcing of design projects in order to lower its operational costs. 

While Mahindra Satyam and Capgemini already work with Bombardier and are in discussions with the aircraft maker for this contract , India’s second biggest software exporter Infosys and smaller rival QuEST Global are also pursuing this opportunity. The contract will involve engineering design projects for Bombardier’s CSeries jetliners being procured by Lease Corp. International Aviation and Lufthansa are in transactions worth over $3 billion. 

From around $1.8 billion currently , India’s engineering services outsourcing (ESO) market is expected to reach $50 billion over the next ten years as more aviation and manufacturing companies seek to lower their design costs by outsourcing to the country. When contacted by ET last week, a Bombardier spokesperson declined to provide any specific details of this contract. “Bombardier Aerospace is active in India through associations with Capgemini and Mahindra Satyam in Bangalore since 2005. Bombardier Aerospace in its normal course of business continues to hold exploratory discussions with several entities located around the world to address various business opportunities,” said Marc Duchesne, Manager, Public Affairs & Senior spokesperson, Bombardier Aerospace. Apart from smaller focused firms such as Infotech Enterprises and QuEST Global, large Indian software firms including TCS, Infosys and HCL have been attempting to increase their revenues from aviation design projects.

While Infosys would not comment on any specific customer, a person familiar with the company’s strategies told ET on conditions of anonymity that Infosys is among vendors bidding for the Bombardier contract. “Infosys is in conversation with Bombardier which is the main OEM among the four to five big players in this market. Bombardier’s future road map is throwing up an enormous potential as they have formed the blueprint for C-Series ,” he said. Companies such as Infosys now want a bigger pie of the outsourcing contract, which will include some portion of mechanical engineering design work as well.

Date : 4 Aug 2009

BANGALORE: At a time when revenues from application development and maintenance are shrinking, Indian tech firms are seeing newer opportunities emerge from engineering services outsourcing (ESO) market, estimated to be worth around $1.8 billion today and expected to reach $50 billion by 2020 for the country. 

Tech companies such as TCS, QuEST Global, Infotech Enterprises and Tata Technologies are finding new opportunities , because their top customers including Airbus, Boeing, Bombardier and EADS are changing their business models to cut costs with more outsourcing , bring in new risk-sharing partners and get closer to growing markets such as India and China. 

Besides increase in volume from aerospace customers, these companies are seeing growth in number of customers from life sciences, healthcare and energy conservation verticals. 

“We believe that the recent structural changes in the automotive industry will drive increased demand for ESO, and specifically outsourcing to India,” says Tata Technologies president and global COO Warren Harris. The company is in the process of securing a full vehicle programme for a major Asia-Pacific automotive OEM, “which will be a first for an Indian ESO provider,” according to Mr Harris. 

Frost and Sullivan’s automotive and transportation senior director VG Ramakrishnan said that companies from Europe and US are looking to increase their activity in India because of cost arbitrage and talent. “The cost arbitrage is like $25 per hour in India and $75 per hour in US. The value of contracts that will come to India typically start from Rs 200- Rs 300 crore” . 

“India can expect to win about 25% of this offshore engineering spend, about $50 billion due to various reasons, like availability of skilled and trained English speaking manpower, cost advantages, excellent offshore management processes,” says QuEST Global chief marketing officer Bejoy George. “We expect to cross $100 million in revenues this current year,” said Mr George. 

Infotech Enterprises is eyeing opportunities in the auto-sector , rail transportation, heavy engineering, oil and gas. “We are seeing new work coming to us in auto sector for fuel-efficient cars, clean technology-based engines for aerospace, developing medical electronic devices,” said Infotech Enterprises chairman BVR Mohan Reddy.

Date : 23 June 2009

Introduction

In this article we will go deep into one specific industry - Global Engineering Services and use it as an example to conclude that there is no one size fits all solution for managing soft-skills. 

The universe of global engineering services is in a state of constant flux as technology and business keeps changing. Adding to this is the demographic shift in engineers. A significant proportion of existing aerospace/automotive and mechanical engineering are now retiring from developed nations such as US, UK, France, Germany and Japan. However, their colleges & universities are turning out far lesser engineering and aeronautical graduates creating a big demand for such engineering graduates from other geographies. In short, a vastly different demography is emerging today to discharge global engineering requirements. 

By the word Services in Global Engineering Services one can infer that they have customer compulsions similar to other service businesses and industries. Thus customer relationship management and communication are important. Similarly, value they offer is judged or perceived based on overall experience and ambience at all touch-points and not just on the service provided or product delivered. This work demands high accountability and work-ethic, a sense of urgency, doing things right first time, on time delivery, minimizing defects, in short - deliver consistently a very high level of quality. 

Soft-skills Universal phenomena

An important stakeholder for a discussion on soft skills is the new-generation engineering force in whose hands we entrust our future. The dynamic young generation is a lot more confident, has excellent access to education and information, tends to be more self-sufficient and independent, much more tolerant to alien ideas, values and thought streams, a lot better in team building and bonding and last but not the least, highly informed, conscious and vocal about social, political and environmental issues. 

However, it is widely documented and well-known that there is a real challenge on the demand side on sourcing people with relevant soft-skills. It is increasingly becoming difficult to allocate trained resources on the job without supplemental soft-skills training. Engineers, taken as a class, tend to be less endowed with soft-skills than some other professionals. The highly advanced mathematical, analytical brain may not be much of a communicator. Whether in the United States, Mexico, India, China, Poland, anywhere, this is a common issue. During their high school education, many engineers would have neglected studying humanities, languages and arts as a result of peer pressure to master science and mathematics, subjects that help clearing competitive entrance exams. In this process an all-rounded development of complementary human intelligences and faculties like creativity and inter-personal skills is stunted. 

A look at contemporary industry practices

Within the Indian industry, there is a definite move towards backward integrating academics with the soft-skill needs including English language, communication and team work. Industries have started collaborating in a structured way with academia thereby resulting in a mutual win-win for both. Through evaluation rigor prior to on-boarding, there is some control on the quality of the incumbents. Some popular mantras include hire for attitude train for skills and hire for learning ability. 

There is at least a three month window before full productivity of fresh candidates resulting in a sail or sink situation for the freshers. It is usually impossible to fit freshers into mission critical projects.

The scope and impact of roles keep increasing as careers progress and therefore the specific interventions and methods to augment soft-skills need to be carefully planned. A learning map published to employees helps to keep them conscious and aware of behavior expected at their level and at the next higher level. A Harvard University study revealed that 85% of jobs & promotions happened because of the candidate s attitude and only 15% due to the store of information he or she possessed. 

Recent developments

A study across four engineering service industries in India revealed the top challenges as - Not asking enough questions , Assuming customer / authority figure is always right , Being afraid to ask questions and Assuming everything is understood based on whatever customer has told us. 

As a result of globalization along with technical excellence, newer skills like knowledge of interacting with trans-national cultural behavior, use of graphic communication including use of annotations with pictures, conducting walk-through using webinar sessions and so forth, creativity and innovation (why, what-if) are emerging in the space of engineering services. Traditional soft-skills continue to be relevant and these include adaptability, open-mindedness, problem solving, decision making, communication skills, self learning and knowledge discovery, empathy and team work, motivation and attitude encompassing initiative, perseverance in adversity and ability to motivate self and others. 

The changing business scenario today has resulted in specific soft-skills assuming importance as shown below

Services Skills Linkage

Project management: Team work, assertiveness, execution excellence.

Knowledge management: Written English, writing skills

Integrated product teams (IPT), Concurrent engineering: Spoken English, verbal communication, use of graphical communication methods

Quality systems and processes: Mindset, attitude, attention to details, assertiveness- including ability to say no when appropriate, Integrity, Honesty, Forthrightness in admitting mistakes

Global project teams: Business etiquettes, cultural sensitivity, Willingness to seek help

Rapid changes in business and technology: Stress (self ) management, flexibility, adaptability, change management

Innovation / Productivity improvement: Open, inquisitive mind, creativity

Conclusion

In these changing times, there is no one method to fit all the situations. The process of effectively imparting soft-skills or any other skill is best done combining communication skills , with appreciation of learner psychology and of course subject matter knowledge. For example, convincing the young generation on the need for a green lifestyle, has to draw on excellent communication skills , include the compulsions of decisions (or indecision) that they can relate with; and also be technically convincing - supported with meaningful everyday examples and data. For global engineering services industry, this appreciation can help bring change of the scale that is required today. 

The author is Competency Development Head, QuEST Global

Source: 

http://www.cxotoday.com/India/CXO_Views/Soft_skills_Crucial_in_Global_Engineering_Services/551-103493-1006.html

Date : 17 June 2009 

SANTA ANA, Calif., June 17, 2009 (GLOBE NEWSWIRE) - MSC.Software (Nasdaq:MSCS), a leading global provider of simulation software and services, today announced that QuEST Global, a leading provider of diversified engineering services and manufacturing, has selected MSC.Software engineering analysis solutions, including MSC Patran and Patran Thermal software, to drive innovation and accelerate new product development in its broad customer base that includes manufacturers in aerospace, consumer electronics, healthcare, industrial products, marine, nuclear engineering, oil & gas, power generation and transportation. 

QuEST Global will help their customers bring engineering design and analysis to the forefront of their business process and thereby cut product development costs, shorten lead times, increase capacity and maximize engineering resources.

"QuEST Global offers its customers services across the complete product life cycle. The issue we repeatedly hear from our customers is that they are challenged to reduce the labor and time required to complete model construction," said Ajay Prabhu, Chief Operating Officer of QuEST Global. "By adopting MSC.Software's engineering analysis tools through a global partnership, we create value for our customers by providing simulation design and analysis support for their products and processes that help them decrease the time and costs associated with virtual product development." 

About QuEST Global 

QuEST Global is a leading provider of diversified engineering services and manufacturing. The company helps customers in the aerospace, consumer electronics, healthcare, industrial products, marine, nuclear engineering, oil & gas, power generation and transportation verticals to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support, vendor management, and in-house precision machining. Through our Global Product Development framework and our on-site/off-shore/on-shore models, we leverage our local presence and global reach to support globalization initiatives for our customers. QuEST Global employs over 1,700 professionals and has delivery centers in India, USA, Italy, Japan, Germany, France and footprints in UK and Spain.

About MSC.Software Corporation 

MSC.Software (Nasdaq:MSCS) is a global leader of simulation solutions that help companies make money, save time and reduce costs associated with designing and testing manufactured products. MSC.Software works with thousands of companies in hundreds of industries to develop better products faster by utilizing information technology, software, services and systems. MSC.Software employs more than 1,000 people around the world. For additional information about MSC.Software's products and services, please visit www.mscsoftware.com. 

Safe Harbor Language 

This press release contains forward-looking statements, including statements relating to the features, benefits, capabilities and/or performance of MSC.Software products and services. These statements are subject to risks and uncertainties that could cause actual results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, changes in technology, the end-user computing and analysis environment, implementation and support that meet evolving customer requirements, general industry trends and the impact of competitive products. Furthermore, information provided herein, which is not historical in nature, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. 

The MSC.Software corporate logo, Adams, Dytran, Easy5, Laminate Modeler, Marc, MD Adams, MD Nastran, MD Patran, Mentat, MSC, MSC MasterKey, MSC Nastran, Mvision, Patran, SimDesigner, SimEnterprise, SimManager, SimOffice, SimTemplate, SimXpert and Sofy are trademarks or registered trademarks of the MSC.Software Corporation in the United States and/or other countries. NASTRAN is a registered trademark of NASA. All other trademarks belong to their respective owners. 

Source: 

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=PZ&date=20090617&id=10032042

http://news.morningstar.com/newsnet/ViewNews.aspx?article=/GNW/167462_univ.xml

http://finance.yahoo.com/news/QuEST-Global-Selects-pz-15552541.html?x=1

Date : 13 June 2009

Bangalore, June 13 - For the 1,800 employees of QuEST Global, a Bangalore-based software firm with interests in aerospace, manufacturing and engineering services, the fact that the company has frozen salary hikes this year is ‘no disturbing news’.

That’s because the good news has come in the form of a year-end performance bonus, which is almost 15 per cent of their annual compensation.

“Though the company grew by 70 per cent last year, we decided to freeze this year’s hikes to keep our direct costs flat. 

“This also helped us to keep the employees engaged during the slowdown and share rewards with them for overall organisation performance. In addition, employees were secure with notional CTC hikes for calculating next year’s increments,” says Mr Natarajan Iyer, Vice-President (HR and Administration), QuEST Engineering & Software Technologies Pvt Ltd. 

Being creative 

Ms Gangapriya Chakraverti, India Business Leader, Information product solutions, Mercer Consulting (India), says many companies have resorted to such creative and innovative reward systems to keep their fixed costs low during the year.

Companies have also become more perceptive about individual employee needs and are looking at mass customisation in the reward system. “Employees now have a choice of working out their compensation packet depending on their needs. For instance, a 21-year-old may want a higher cash component than a senior employee who may be looking for higher medical benefits or retirement benefits,” she says.

Ms Hema Ravichander, Strategic HR Advisor, says giving one-off increases is a step in the right direction. “The company is also sharpening its performance differential and reinforcing a high performance work culture.” 

Stepping slowly 

“We will see stagnant salaries this year too. This careful and cautious reward system will continue through the year. In future we may also see salary increases that are close to the GDP growth,” according to Ms Yeshasvini Ramawamy, Director, People Practices, e2e Business Solutions. 

Date : 8 June 2009

QuEST Global, a leading provider of outsourced engineering and manufacturing, plans to focus on the Indian civil nuclear energy sector. "QuEST Global will focus on engineering relating to the nuclear island (not including nuclear reactor) and the turbine island in addition to some aspects of the nuclear fuel cycle," Bejoy George, Chief Marketing Officer, told Projectmonitor.

At present, QuEST Global was focusing on companies in USA, the UK and India. It had submitted a few proposals in response to RfP/RfQ and was awaiting the outcome of these bids, he disclosed.

In India, QuEST Global expects significant opportunities in engineering services, especially in aerospace, power generation, oil and gas, and nuclear plant engineering. Until recently, more than 95 per cent of QuEST Global's revenues came from customers located outside India. Going forward, the company will be focusing on the Indian market with the intent to address government organisations and PSUs as well as private sector companies.

George said that from a technical readiness point of view, QuEST Global had hired a vice president in USA, to head the nuclear practice, as well as experts in the field. The company has also started training a team of about 20 engineers in the nuclear domain such as nuclear engineering safety standards. The training is being provided by Indian companies with expertise in nuclear engineering.

QuEST Global is also registering itself in the supplier database of nuclear technology owners as well as technology implementers like EPCs and other companies that provide commissioning, decommissioning, and refurbishment and life-extension services.

In the power generation sector, the company has worked on hydro turbines and generators, gas and steam turbines, compressors, heat recovery steam generators, turbo generators, wind turbines, accessory systems, pumps and other machinery. 

Source: 

http://www.projectsmonitor.com/NEWPROJECTS/quest-global-eyes-indian-nuclear-space

Date : 12 May 2009

8ak recently interviewed Bejoy George, Chief Marketing Officer for QuEST Global about Aerospace opportunities in India and their Aerospace SEZ. Here is an excerpt, the full article details are below but first some background. 

India has seen more Engineering and R&D investments in aerospace over the last 16 years, than USA or Europe. In Bangalore, India, for example, Honeywell Technology Solutions has a 5,500 engineer setup, while GE's Jack Welch Technology Center has more than 3,000 engineers. Airbus, which recently set up its Airbus Engineering Center India (AECI) facility, aims to have 200+ engineers of its own soon, and more than 2,000 through its partners. In this light, the following JVs in the last year make more sense

Tatas & Agusta Westland to make the AW911

Thales with Samtel and also with Rolta

HAL and many major international companies

EADS and L&T

The biggest problems in Indian aerospace manufacturing however are dispersed production centres, lack of vision and co-ordination amongst the players, outdated tax & tariff structure and outdated labour laws. These are the issues that QuEST Global (www.quest-global.com) has solved by setting up a SEZ dedicated for Aerospace.

We asked Bejoy George, Chief Marketing Officer, QuEST Global some questions. 

8ak: Tell us about the SEZ?

Bejoy: QuEST Global SEZ is spread over 300 acres at Belgaum in Northern Karnataka and will provide an ecosystem for OEMs, their suppliers, all ancillary and related end user industries to set up precision manufacturing and engineering units.

8ak: What services does QuEST itself provide?

Bejoy: QuEST Global's engineering division provides cost-effective design services to its aerospace clients, and also saves money for OEMs and Tier 1s by doing design in such a way so as to save costs in manufacturing through reduction of material costs, reduction in machining operations, using lesser number of parts, reducing assembly costs, etc. QuEST Global's manufacturing provides precision machining, sheet metal working and aerospace special processing currently. 

8ak: Who are your partners?

Bejoy: The special processing company is a 50:50 joint venture with Magellan Aerospace, providing services like anodizing, alodine, paint & primer, passivation, shot peening, MPI, FPI, heat treatment, assembly processes, etc.). QuEST also has an alliance with Textron Systems, where Textron and QuEST Global will work together to develop the manufacturing capabilities within the SEZ and attract investment into the SEZ from the Defence and Aerospace sector. This collaboration is part of Textron's offset related partnerships in India.

8ak: Who are the other companies that have set up shop in the SEZ, or are in the pipeline?

Bejoy: QuEST is at various stages of discussions with several organizations like specialty metal suppliers, aerospace fastener manufacturers, bearings manufacturers, castings and forgings companies, etc. 

8ak: Who are you targeting?

Bejoy: Global is inviting players across the value chain, like aerospace specialty metal suppliers, investment, sand and lost-wax casting companies, tooling companies, fastener manufacturers, sheet metalworking companies, composites manufacturing companies, and heat treatment companies to setup shop in the SEZ. Essentially, any company who can play a role in the Aerospace supply chain, is invited to set up shop in the SEZ. And these can be our customers, other companies, and even our competitors. The aim is to create an aerospace supply chain ecosystem in the SEZ, that will enable a wider range, larger volume and higher value of aerospace products and services to be sourced from India.

8ak: What can you offer them?

Bejoy: Aerospace manufacturing is another growing area out of India. Airframe manufacturers and OEMs can further increase their cost savings by outsourcing castings, forgings, precision machining, sheet metal working, special processing and assembly related activities. In addition, further cost savings can be achieved in aerospace manufacturing by replacement of operations that were automated in the west, with skilled labor in India. Thus, cost savings can be achieved in India by de-automation, rather than by automation - the exact opposite of what happened in the west. Add to this the benefits offered by operating within an SEZ (15 year tax holidays, zero customs duties, etc.) and the financial benefits to companies becomes very significant. Also, these companies will not have to worry about any infrastructure - the SEZ will have well developed roads, alternate sources of power with backup, plenty of water supply, IT and communication infrastructure, conference/meeting room facilities, local transportation, 24 hour security, etc. In addition, QuEST will also facilitate the SEZ occupants in terms of building the facilities, hiring of employees, etc.

8ak: Why Belgaum? Why not somewhere closer to HAL ie Bangalore, Kanpur etc?

Note: Belgaum was selected because of its lower costs of land/infrastructure/labor/living, and also because of the availability of abundant talent for manufacturing and engineering in and around Belgaum - there are more than 2000 foundries and machine shops in a 1000 km radius of the vicinity, along with 60+ engineering, diploma and ITI institutes). The weather in Belgaum is pretty much like Bangalore's (probably better). And Belgaum is excellently located logistically, with 3 airports (Belgaum, Hubli, Kolhapur) in a 90 minute driving range, on the NH4 Golden Quadrilateral highway network of India, equidistant from Bangalore, Hyderabad and Mumbai, and an overnight journey from the Mumbai port. We expect 2 more ports to become accessible for our operations in the next few years (Goa and Karwar). For all these reasons, we selected Belgaum for our SEZ location.

Source: 

http://www.8ak.in/

Date : 4 May 2009

Business Standard 2009, Bangalore, India, May 04, 2009 - QuEST Global, which provides outsourced engineering services and manufacturing, which till now concentrated on aerospace, power generation, oil and gas among other sectors is sniffing business opportunities in the engineering, procurement and construction (EPC) of associated facilities of nuclear power plants.

The firm that saw $85-86 million (unaudited) revenues in FY2009, is in talks with a couple of EPC firms that specialise in providing engineering services to nuclear power plants. QuEST hopes this vertical could help drive its future growth. It is presently concentrating on having engineers with the capability to work on nuclear engineering projects.

As a first step, QuEST has hired a vice-president based in the US who is from the nuclear industry, to drive business growth. He is also providing training to the team based in India on safety codes pertaining to the industry. The firm now has a seed team of 20 persons and aims to build the team.

“These engineers will have the expertise to run the associated facilities of a nuclear power plant,” said Bejoy George, chief marketing officer, QuEST Engineering and Software Technologies.

Department of Atomic Energy (DAE) had earlier formulated a programme for increasing the installed nuclear capacity. This programme envisages 20 000 Mw of installed capacity by 2020. India’s thorium deposits are expected to fuel the fast-breeder reactors. QuEST is looking to develop capabilities to work with EPC firms from Russia, France, US/Japan that could win the contracts to build the fast breeder reactors.

About $15 million has been spent from internal accruals by the firm on its manufacturing facilities in Krishnarajapuram in Bangalore, in Aerospace Precision India (API) and its SEZ. API, a 50:50 joint venture between QuEST and Magellan Aerospace, which provides special processes for aerospace parts, will see investments of $2 million over the next 24 months.

At its Belgaum SEZ which is up and running, QuEST has set up a 200-people facility, and for this facility about 75 have been trained. By June, the firm will have the rest of them in place in Belgaum. Meanwhile, QuEST is looking to invest another $25 million over the next one to one-and-a-half years, the slowdown not withstanding.

The amount has been sanctioned by the State Bank of India.

Source: 

http://www.business-standard.com/india/news/quest-seeks-to-provide-support-to-n-power-plants/356970/

Date : 17 February 2009

Business Standard 2009, Bangalore, India, February 17, 2009 - Aerospace Processing India (API) today announced the opening of its processing facility in Belgaum (Karnataka, India), to cater to the needs of the aerospace manufacturing industry. Located in the QuEST Global Precision Engineering SEZ, API is uniquely positioned to provide metal finishing treatment services for both the Indian export and domestic markets. 

Magellan Aerospace Limited and QuEST Global established API as an independent operating company to provide approved aerospace treatments that are not readily available in India. The fully integrated, scalable facility has been operational from Jan 2009.

API has invested in capabilities, which would enable fulfilling the demand for sourcing fully finished parts from India. In the initial phase, the facility would be focused on processes for aluminum, titanium and stainless steel components for aero-structure and aero-engine components. 

Konrad Hahnelt, Vice President of Magellan Aerospace Limited, and Aravind Melligeri, Chairman & Co-Founder of QuEST Global, have credited “close cooperation between teams from the co-ownership companies, excellent support from the future customer base and a clear focus on the importance of establishing finishing capabilities” for the successful creation and opening of API in India.

The plant boasts of state-of-the art capabilities such as fully automated anodizing line, fully automated Etching line, Semi-automatic Titanium Etching line, Primer & Painting line, advanced Fluorescent Particle Inspection (FPI) line, Magnetic Particle Inspection (MPI) line, advanced 7-axis robotic shot peening and passivation/alodine/alochrome processes. The API facility also has a dedicated reverse osmosis plant, zero discharge effluent treatment plant and a dedicated state-of-the art chemical laboratory to meet statutory testing requirements in-house.

API has received particular support and encouragement from Airbus and Boeing in establishing operations to meet rigorous aerospace specifications and is working with each customer to achieve full operational approvals.

“API provides a much needed, standalone third party metal finishing treatment, services in India. Airbus is proud to have supported API and to have helped enhance the local aerospace industry,” said Dr. Srinivasan Dwarakanath, Airbus Director International Cooperation.

National Aerospace Laboratories, or NAL, the CSIR lab focused on civil aircraft development, is building the regional transport aircraft, or RTA 70, as the project is called. It would use the money to design a digital concept plane in around two years. The money will also be used to improve infrastructure at the lab.

Once additional funding for the Rs2,000 crore project and its partners are firmed up, a prototype would be built and flown in four years, said Kota Harinarayana, Raja Ramanna fellow at NAL, who is spearheading the project.
The first prototype would be 70-seat plane. It is a family of aircraft that NAL is designing and will have three variants, a 70-seater, a 50-seater and an extended 90-seater later.

India’s civil aviation industry has seen a boom in recent years with budget carriers connecting metros and smaller cities, prompting the world’s largest passenger aircraft makers such as Europe’s Airbus SAS and US’ Boeing Co. to revise their projections in the country in the next two decades. India has 449 airfields, of which only 66 are in use by airlines and chartered operators.

At the same time, Asian countries such as India, China, Japan and Russia, which are investing for their aerospace industry, are building planes to carry passengers on short-haul routes of around 1,000km.

Russia’s state-owned Sukhoi Co., is building a Russian regional jet, in collaboration with Boeing and European aero engine maker Snecma. Japan’s Mitsubishi Heavy Industries Ltd is building a family of regional jets to carry 90 passengers, which is expected to be ready for service in 2013. China expects its 90-seater ARJ-21 commercial jet, built by China Aviation Industry Corp. to be ready by 2009.

In the next 20 years, there will be a demand for more than 5,000 planes in the 65-90-seat category, due to airlines upgrading from 50-seat planes, and transfer from mainline planes to regional jets due to higher fuel price and lower passenger yield, said Mitsubishi on its website.

Currently, Brazil’s Embraer or Empresa Brasileira de Aeronautica SA and ATR, a joint venture between Alenia Aeronautica SpA and EADS NV, dominate the category of less than 100-seat aircraft in the world, including India, followed by Canada’s Bombardier Inc.

India would focus on turboprop-powered planes passengers in short-haul routes for better fuel efficiency and passenger comfort.

A turboprop is a gas turbine engine used to drive a propeller in an aircraft.

“Fuel prices are not going to come down. With newer technologies, you can make a better plane than what has been built so far,” said Harinarayana, a former programme head of India’s light combat aircraft Tejas. He led it from the concept stage to flying two technology demonstrators of the fighter.

The new plane will have more composites, he said. It will use off-the-shelf electronic components that would be packaged for aircraft standards and embed micro-electrical mechanical systems (Mems), sensors that monitor aircraft health and reduce maintenance costs.

Globally, plane makers such as Boeing are using sensors to monitor structures in its delayed 787 plane. India has a base for Mems under the National Programme for Smart Materials (NPSM), a programme funded by India’s Defence Research and Development Organisation.

Analysts say India’s civil aeroplane project would help build its technologies and capabilities in terms of manpower, but efforts should be made to get rid of public sector inefficiencies that have plagued NAL’s Hansa and Saras aircraft projects.

“There is huge opportunity for such planes. The fear is that if you don’t build it in time, the plane would become obsolete and you will lose the market,” said N.R. Mohanty, chairman of the India operations of Textron Inc., the US maker of Cessna business jets and Bell helicopters. “For this, the private sector should be involved from scratch and deadlines set.”
NAL, which has built the Hansa two-seater trainer and Saras, the 14-seat passenger plane, plans to collaborate with global plane makers and Indian private firms for the regional plane project.

“We will involve private partners right from the concept stage. So they will be able to market the plane better,” said Harinarayana. He, however, did not elaborate.

“We need more investments in aerospace technologies. The market demand is there but there is also competition from other plane makers,” said Ajit Prabhu, co-founder and chief executive of Quality Engineering and Software Technologies Inc., a Bangalore firm that offers engineering services and manufacturing components for global aerospace firms.
 

Date : 30 January 2009

Bangalore, Jan 30 The global recession has made most companies tighten their belts and adopt cost cutting measures, but companies that focused on creating value through engineering, instead of depending on financial engineering, have a different story to tell. They are not only confident of surviving difficult times, but are adopting strategies, which would make them to emerge stronger. 

With a 66 percent year-on-year revenue growth, QuEST Global provides product engineering services, especially to the Aerospace industry, and it is emerging as one such company. The company acquired ASE Technologies, a Cincinnati, Ohio headquartered Engineering Services Company with engineering offices in Greenville, South Carolina, and Phoenix, Arizona, and it seems to be proving the adage, ‘Recession is the best time to invest’. It is also sending out a strong message that it pays to focus on core competency.

Source: 

http://www.arcweb.com/Research/Abstracts/Lists/Posts/Post.aspx?List=c616aa03%2D928a%2
D4193%2Db754%2D8af7531e861d&ID=184&RootFolder=%2FResearch%2FAbstracts%2FLists%2FPosts

National Aerospace Laboratories, or NAL, the CSIR lab focused on civil aircraft development, is building the regional transport aircraft, or RTA 70, as the project is called. It would use the money to design a digital concept plane in around two years. The money will also be used to improve infrastructure at the lab.

Once additional funding for the Rs2,000 crore project and its partners are firmed up, a prototype would be built and flown in four years, said Kota Harinarayana, Raja Ramanna fellow at NAL, who is spearheading the project.
The first prototype would be 70-seat plane. It is a family of aircraft that NAL is designing and will have three variants, a 70-seater, a 50-seater and an extended 90-seater later.

India’s civil aviation industry has seen a boom in recent years with budget carriers connecting metros and smaller cities, prompting the world’s largest passenger aircraft makers such as Europe’s Airbus SAS and US’ Boeing Co. to revise their projections in the country in the next two decades. India has 449 airfields, of which only 66 are in use by airlines and chartered operators.

At the same time, Asian countries such as India, China, Japan and Russia, which are investing for their aerospace industry, are building planes to carry passengers on short-haul routes of around 1,000km.

Russia’s state-owned Sukhoi Co., is building a Russian regional jet, in collaboration with Boeing and European aero engine maker Snecma. Japan’s Mitsubishi Heavy Industries Ltd is building a family of regional jets to carry 90 passengers, which is expected to be ready for service in 2013. China expects its 90-seater ARJ-21 commercial jet, built by China Aviation Industry Corp. to be ready by 2009.

In the next 20 years, there will be a demand for more than 5,000 planes in the 65-90-seat category, due to airlines upgrading from 50-seat planes, and transfer from mainline planes to regional jets due to higher fuel price and lower passenger yield, said Mitsubishi on its website.

Currently, Brazil’s Embraer or Empresa Brasileira de Aeronautica SA and ATR, a joint venture between Alenia Aeronautica SpA and EADS NV, dominate the category of less than 100-seat aircraft in the world, including India, followed by Canada’s Bombardier Inc.

India would focus on turboprop-powered planes passengers in short-haul routes for better fuel efficiency and passenger comfort.

A turboprop is a gas turbine engine used to drive a propeller in an aircraft.

“Fuel prices are not going to come down. With newer technologies, you can make a better plane than what has been built so far,” said Harinarayana, a former programme head of India’s light combat aircraft Tejas. He led it from the concept stage to flying two technology demonstrators of the fighter.

The new plane will have more composites, he said. It will use off-the-shelf electronic components that would be packaged for aircraft standards and embed micro-electrical mechanical systems (Mems), sensors that monitor aircraft health and reduce maintenance costs.

Globally, plane makers such as Boeing are using sensors to monitor structures in its delayed 787 plane. India has a base for Mems under the National Programme for Smart Materials (NPSM), a programme funded by India’s Defence Research and Development Organisation.

Analysts say India’s civil aeroplane project would help build its technologies and capabilities in terms of manpower, but efforts should be made to get rid of public sector inefficiencies that have plagued NAL’s Hansa and Saras aircraft projects.

“There is huge opportunity for such planes. The fear is that if you don’t build it in time, the plane would become obsolete and you will lose the market,” said N.R. Mohanty, chairman of the India operations of Textron Inc., the US maker of Cessna business jets and Bell helicopters. “For this, the private sector should be involved from scratch and deadlines set.”
NAL, which has built the Hansa two-seater trainer and Saras, the 14-seat passenger plane, plans to collaborate with global plane makers and Indian private firms for the regional plane project.

“We will involve private partners right from the concept stage. So they will be able to market the plane better,” said Harinarayana. He, however, did not elaborate.

“We need more investments in aerospace technologies. The market demand is there but there is also competition from other plane makers,” said Ajit Prabhu, co-founder and chief executive of Quality Engineering and Software Technologies Inc., a Bangalore firm that offers engineering services and manufacturing components for global aerospace firms. 
 

Source: http://www.livemint.com/2008/04/14011140/Aerospace-lab-to-design-build.html

National Aerospace Laboratories, or NAL, the CSIR lab focused on civil aircraft development, is building the regional transport aircraft, or RTA 70, as the project is called. It would use the money to design a digital concept plane in around two years. The money will also be used to improve infrastructure at the lab.

Once additional funding for the Rs2,000 crore project and its partners are firmed up, a prototype would be built and flown in four years, said Kota Harinarayana, Raja Ramanna fellow at NAL, who is spearheading the project.

The first prototype would be 70-seat plane. It is a family of aircraft that NAL is designing and will have three variants, a 70-seater, a 50-seater and an extended 90-seater later.

India’s civil aviation industry has seen a boom in recent years with budget carriers connecting metros and smaller cities, prompting the world’s largest passenger aircraft makers such as Europe’s Airbus SAS and US’ Boeing Co. to revise their projections in the country in the next two decades. India has 449 airfields, of which only 66 are in use by airlines and chartered operators.

At the same time, Asian countries such as India, China, Japan and Russia, which are investing for their aerospace industry, are building planes to carry passengers on short-haul routes of around 1,000km. 

Russia’s state-owned Sukhoi Co., is building a Russian regional jet, in collaboration with Boeing and European aero engine maker Snecma. Japan’s Mitsubishi Heavy Industries Ltd is building a family of regional jets to carry 90 passengers, which is expected to be ready for service in 2013. China expects its 90-seater ARJ-21 commercial jet, built by China Aviation Industry Corp. to be ready by 2009. 

In the next 20 years, there will be a demand for more than 5,000 planes in the 65-90-seat category, due to airlines upgrading from 50-seat planes, and transfer from mainline planes to regional jets due to higher fuel price and lower passenger yield, said Mitsubishi on its website.

Currently, Brazil’s Embraer or Empresa Brasileira de Aeronautica SA and ATR, a joint venture between Alenia Aeronautica SpA and EADS NV, dominate the category of less than 100-seat aircraft in the world, including India, followed by Canada’s Bombardier Inc. 

India would focus on turboprop-powered planes passengers in short-haul routes for better fuel efficiency and passenger comfort. 

A turboprop is a gas turbine engine used to drive a propeller in an aircraft.

“Fuel prices are not going to come down. With newer technologies, you can make a better plane than what has been built so far,” said Harinarayana, a former programme head of India’s light combat aircraft Tejas. He led it from the concept stage to flying two technology demonstrators of the fighter.

The new plane will have more composites, he said. It will use off-the-shelf electronic components that would be packaged for aircraft standards and embed micro-electrical mechanical systems (Mems), sensors that monitor aircraft health and reduce maintenance costs. 

Globally, plane makers such as Boeing are using sensors to monitor structures in its delayed 787 plane. India has a base for Mems under the National Programme for Smart Materials (NPSM), a programme funded by India’s Defence Research and Development Organisation.

Analysts say India’s civil aeroplane project would help build its technologies and capabilities in terms of manpower, but efforts should be made to get rid of public sector inefficiencies that have plagued NAL’s Hansa and Saras aircraft projects. 

“There is huge opportunity for such planes. The fear is that if you don’t build it in time, the plane would become obsolete and you will lose the market,” said N.R. Mohanty, chairman of the India operations of Textron Inc., the US maker of Cessna business jets and Bell helicopters. “For this, the private sector should be involved from scratch and deadlines set.”

NAL, which has built the Hansa two-seater trainer and Saras, the 14-seat passenger plane, plans to collaborate with global plane makers and Indian private firms for the regional plane project.

“We will involve private partners right from the concept stage. So they will be able to market the plane better,” said Harinarayana. He, however, did not elaborate.

“We need more investments in aerospace technologies. The market demand is there but there is also competition from other plane makers,” said Ajit Prabhu, co-founder and chief executive of Quality Engineering and Software Technologies Inc., a Bangalore firm that offers engineering services and manufacturing components for global aerospace firms. 

Source:http://www.livemint.com/2008/04/14011140/Aerospace-lab-to-design-build.html

Source:  

http://www.outlookbusiness.com/print.aspx?newsid=5758&storydate=16%20Apr%202008&catgid=37&subcatgid=189&sendpage=news

http://economictimes.indiatimes.com/News/News_By_Industry/Transportation/Airlines__Aviation/Offset_clause_for_Aerospace_
can_fetch_big_business_for_India/articleshow/2956493.cms 

http://www.outlookindia.com/pti_news.asp?gid=73&id=562808 

http://www.tribuneindia.com/2008/20080417/biz.htm#15

http://finance.indiainfo.com/2008/04/16/0804161508_aerospace.html

QuEST Global SEZ is spread over 300 acres at Belgaum, Karnataka and is focussed on developing the Aerospace supply chain ecosystem. The SEZ will provide world class infrastructure in the industrial estate, concentrating mainly on aerospace and automotive related industries. The SEZ is the first ever modified precision engineering SEZ in Karnataka. By starting operations in Belgaum which is a Tier 3 town in India, QuEST Global Engineering is pioneering the way to ensure low cost delivery of engineering in the future also.

About Aero India

The 7th Aero India, Asia's premier Air Show, is being organized by the Ministry of Defence, Government of India. It is managed by Confederation of Indian Industry (CII) at Air Force Station Yelahanka, Bengaluru, India from February 11-15, 2009. Aero India has already carved a niche for itself globally as a premier aerospace exhibition, with six successful editions organized between 1996 and 2007. The show aims at bringing under one roof, exhibitors from all around the globe to showcase the best in aviation. Aero India includes both flight and static displays of a wide range of civil and military aircrafts from leading manufacturers, vendors and suppliers.

Source:

http://www.business-standard.com/india/news/quest-global-participates-in-aero-india-2009/15/46/348085/

Related Links:

http://www.indiainfoline.com/news/innernews.asp?storyId=92667&lmn=1&cat=20

http://pr-usa.net/index.php?option=com_content&task=view&id=169305&Itemid=95

http://www.india-defence.com/reports-4206

http://pressreleasewatch.blogspot.com/

http://www.aim168realestate.com/real-estate-news/india/8124/quest-global-participates-in-a.html

http://www.pr.com/press-release/130842

The SEZ, endorsed by the Ministry of Commerce & Industry, covers 300 acres and is focused on Precision Engineering. As a sector-specific economic zone, this area will provide build-to-suit requirements to companies seeking to establish businesses and manufacturing facilities in the region by providing a world-class infrastructure, particularly for the aerospace and defense, industrial and automotive industries. Development of the SEZ, currently in Phase I, began in January 2009.

“With growing demands for state-of-the-art defense services and solutions, India is a key country in a region that is important to our international growth,” stated Frank Tempesta, President and CEO, Textron Systems. “We look forward to partnering with the Indian Government, the Indian Armed Forces and QuEST in strengthening India’s defenses.”

“This relationship marks the beginning of the Aerospace & Defense industry’s development at the SEZ,” said Aravind Melligeri, Chairman and Co-founder, QuEST Global. “This SEZ provides a platform for Foreign Direct Investments, products and services in support of the Indian defense industry.”

Under the terms and conditions of a Memorandum of Understanding, Textron Systems and QuEST Global will work together to develop the manufacturing capabilities within the SEZ. 

About Textron Systems

Textron Systems Corporation has been providing innovative solutions to the defense, homeland security and aerospace communities for over 50 years. Known for its precision smart weapons, intelligent battlefield systems, surveillance systems, intelligence software solutions, aircraft control components, piston engines, armored vehicles and unmanned aircraft systems, Textron Systems includes AAI, HR Textron, Lycoming Engines, Overwatch Tactical Operations, Overwatch Geospatial Operations, Textron Defense Systems, and Textron Marine & Land Systems. Textron Systems Corporation is an indirect wholly owned subsidiary of Textron Inc. More information is available at www.textronsystems.com. 

About Textron Inc.

Textron Inc. (NYSE: TXT) is a $14.2 billion multi-industry company operating in 28 countries with approximately 42,000 employees. The company leverages its global network of aircraft, defense and intelligence, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee, Textron Systems and Textron Financial Corporation. More information is available at www.textron.com.

Source: 

http://www.business-standard.com/india/news/textron-systems-quest-global-begin-cooperationsez-in-belgaum/17/21/348974/

Source:

http://www.business-standard.com/india/news/api-opens-its-metal-finishing-facility-in-india/17/21/348975/ 

The firm that saw $85-86 million (unaudited) revenues in FY2009, is in talks with a couple of EPC firms that specialise in providing engineering services to nuclear power plants. QuEST hopes this vertical could help drive its future growth. It is presently concentrating on having engineers with the capability to work on nuclear engineering projects.

As a first step, QuEST has hired a vice-president based in the US who is from the nuclear industry, to drive business growth. He is also providing training to the team based in India on safety codes pertaining to the industry. The firm now has a seed team of 20 persons and aims to build the team.

“These engineers will have the expertise to run the associated facilities of a nuclear power plant,” said Bejoy George, chief marketing officer, QuEST Engineering and Software Technologies.

Department of Atomic Energy (DAE) had earlier formulated a programme for increasing the installed nuclear capacity. This programme envisages 20 000 Mw of installed capacity by 2020. India’s thorium deposits are expected to fuel the fast-breeder reactors. QuEST is looking to develop capabilities to work with EPC firms from Russia, France, US/Japan that could win the contracts to build the fast breeder reactors.

About $15 million has been spent from internal accruals by the firm on its manufacturing facilities in Krishnarajapuram in Bangalore, in Aerospace Precision India (API) and its SEZ. API, a 50:50 joint venture between QuEST and Magellan Aerospace, which provides special processes for aerospace parts, will see investments of $2 million over the next 24 months.

At its Belgaum SEZ which is up and running, QuEST has set up a 200-people facility, and for this facility about 75 have been trained. By June, the firm will have the rest of them in place in Belgaum. Meanwhile, QuEST is looking to invest another $25 million over the next one to one-and-a-half years, the slowdown not withstanding.

The amount has been sanctioned by the State Bank of India.

Source: 

http://www.business-standard.com/india/news/quest-seeks-to-provide-support-to-n-power-plants/356970/

India has seen more Engineering and R&D investments in aerospace over the last 16 years, than USA or Europe. In Bangalore, India, for example, Honeywell Technology Solutions has a 5,500 engineer setup, while GE's Jack Welch Technology Center has more than 3,000 engineers. Airbus, which recently set up its Airbus Engineering Center India (AECI) facility, aims to have 200+ engineers of its own soon, and more than 2,000 through its partners. In this light, the following JVs in the last year make more sense

Tatas & Agusta Westland to make the AW911

Thales with Samtel and also with Rolta

HAL and many major international companies

EADS and L&T

The biggest problems in Indian aerospace manufacturing however are dispersed production centres, lack of vision and co-ordination amongst the players, outdated tax & tariff structure and outdated labour laws. These are the issues that QuEST Global (www.quest-global.com) has solved by setting up a SEZ dedicated for Aerospace.

We asked Bejoy George, Chief Marketing Officer, QuEST Global some questions. 

8ak: Tell us about the SEZ?

Bejoy: QuEST Global SEZ is spread over 300 acres at Belgaum in Northern Karnataka and will provide an ecosystem for OEMs, their suppliers, all ancillary and related end user industries to set up precision manufacturing and engineering units.

8ak: What services does QuEST itself provide?

Bejoy: QuEST Global's engineering division provides cost-effective design services to its aerospace clients, and also saves money for OEMs and Tier 1s by doing design in such a way so as to save costs in manufacturing through reduction of material costs, reduction in machining operations, using lesser number of parts, reducing assembly costs, etc. QuEST Global's manufacturing provides precision machining, sheet metal working and aerospace special processing currently. 

8ak: Who are your partners?

Bejoy: The special processing company is a 50:50 joint venture with Magellan Aerospace, providing services like anodizing, alodine, paint & primer, passivation, shot peening, MPI, FPI, heat treatment, assembly processes, etc.). QuEST also has an alliance with Textron Systems, where Textron and QuEST Global will work together to develop the manufacturing capabilities within the SEZ and attract investment into the SEZ from the Defence and Aerospace sector. This collaboration is part of Textron's offset related partnerships in India.

8ak: Who are the other companies that have set up shop in the SEZ, or are in the pipeline?

Bejoy: QuEST is at various stages of discussions with several organizations like specialty metal suppliers, aerospace fastener manufacturers, bearings manufacturers, castings and forgings companies, etc. 

8ak: Who are you targeting?

Bejoy: Global is inviting players across the value chain, like aerospace specialty metal suppliers, investment, sand and lost-wax casting companies, tooling companies, fastener manufacturers, sheet metalworking companies, composites manufacturing companies, and heat treatment companies to setup shop in the SEZ. Essentially, any company who can play a role in the Aerospace supply chain, is invited to set up shop in the SEZ. And these can be our customers, other companies, and even our competitors. The aim is to create an aerospace supply chain ecosystem in the SEZ, that will enable a wider range, larger volume and higher value of aerospace products and services to be sourced from India.

8ak: What can you offer them?

Bejoy: Aerospace manufacturing is another growing area out of India. Airframe manufacturers and OEMs can further increase their cost savings by outsourcing castings, forgings, precision machining, sheet metal working, special processing and assembly related activities. In addition, further cost savings can be achieved in aerospace manufacturing by replacement of operations that were automated in the west, with skilled labor in India. Thus, cost savings can be achieved in India by de-automation, rather than by automation - the exact opposite of what happened in the west. Add to this the benefits offered by operating within an SEZ (15 year tax holidays, zero customs duties, etc.) and the financial benefits to companies becomes very significant. Also, these companies will not have to worry about any infrastructure - the SEZ will have well developed roads, alternate sources of power with backup, plenty of water supply, IT and communication infrastructure, conference/meeting room facilities, local transportation, 24 hour security, etc. In addition, QuEST will also facilitate the SEZ occupants in terms of building the facilities, hiring of employees, etc.

8ak: Why Belgaum? Why not somewhere closer to HAL ie Bangalore, Kanpur etc?

Note: Belgaum was selected because of its lower costs of land/infrastructure/labor/living, and also because of the availability of abundant talent for manufacturing and engineering in and around Belgaum - there are more than 2000 foundries and machine shops in a 1000 km radius of the vicinity, along with 60+ engineering, diploma and ITI institutes). The weather in Belgaum is pretty much like Bangalore's (probably better). And Belgaum is excellently located logistically, with 3 airports (Belgaum, Hubli, Kolhapur) in a 90 minute driving range, on the NH4 Golden Quadrilateral highway network of India, equidistant from Bangalore, Hyderabad and Mumbai, and an overnight journey from the Mumbai port. We expect 2 more ports to become accessible for our operations in the next few years (Goa and Karwar). For all these reasons, we selected Belgaum for our SEZ location.

Source: 

http://www.8ak.in/

At present, QuEST Global was focusing on companies in USA, the UK and India. It had submitted a few proposals in response to RfP/RfQ and was awaiting the outcome of these bids, he disclosed.

In India, QuEST Global expects significant opportunities in engineering services, especially in aerospace, power generation, oil and gas, and nuclear plant engineering. Until recently, more than 95 per cent of QuEST Global's revenues came from customers located outside India. Going forward, the company will be focusing on the Indian market with the intent to address government organisations and PSUs as well as private sector companies.

George said that from a technical readiness point of view, QuEST Global had hired a vice president in USA, to head the nuclear practice, as well as experts in the field. The company has also started training a team of about 20 engineers in the nuclear domain such as nuclear engineering safety standards. The training is being provided by Indian companies with expertise in nuclear engineering.

QuEST Global is also registering itself in the supplier database of nuclear technology owners as well as technology implementers like EPCs and other companies that provide commissioning, decommissioning, and refurbishment and life-extension services.

In the power generation sector, the company has worked on hydro turbines and generators, gas and steam turbines, compressors, heat recovery steam generators, turbo generators, wind turbines, accessory systems, pumps and other machinery. 

Source: 
http://www.projectsmonitor.com/NEWPROJECTS/quest-global-eyes-indian-nuclear-space

That’s because the good news has come in the form of a year-end performance bonus, which is almost 15 per cent of their annual compensation.

“Though the company grew by 70 per cent last year, we decided to freeze this year’s hikes to keep our direct costs flat. 

“This also helped us to keep the employees engaged during the slowdown and share rewards with them for overall organisation performance. In addition, employees were secure with notional CTC hikes for calculating next year’s increments,” says Mr Natarajan Iyer, Vice-President (HR and Administration), QuEST Engineering & Software Technologies Pvt Ltd. 

Being creative 

Ms Gangapriya Chakraverti, India Business Leader, Information product solutions, Mercer Consulting (India), says many companies have resorted to such creative and innovative reward systems to keep their fixed costs low during the year.

Companies have also become more perceptive about individual employee needs and are looking at mass customisation in the reward system. “Employees now have a choice of working out their compensation packet depending on their needs. For instance, a 21-year-old may want a higher cash component than a senior employee who may be looking for higher medical benefits or retirement benefits,” she says.

Ms Hema Ravichander, Strategic HR Advisor, says giving one-off increases is a step in the right direction. “The company is also sharpening its performance differential and reinforcing a high performance work culture.” 

Stepping slowly 

“We will see stagnant salaries this year too. This careful and cautious reward system will continue through the year. In future we may also see salary increases that are close to the GDP growth,” according to Ms Yeshasvini Ramawamy, Director, People Practices, e2e Business Solutions. 

Source: 

http://www.thehindubusinessline.com/2009/06/14/stories/2009061451030500.htm

http://www.fastcompany.com/blog/kaihan-krippendorff/outthinker-mavericks-out-innovate-competition/make-them-need-you-become-ind

QuEST Global will help their customers bring engineering design and analysis to the forefront of their business process and thereby cut product development costs, shorten lead times, increase capacity and maximize engineering resources.

"QuEST Global offers its customers services across the complete product life cycle. The issue we repeatedly hear from our customers is that they are challenged to reduce the labor and time required to complete model construction," said Ajay Prabhu, Chief Operating Officer of QuEST Global. "By adopting MSC.Software's engineering analysis tools through a global partnership, we create value for our customers by providing simulation design and analysis support for their products and processes that help them decrease the time and costs associated with virtual product development." 

About QuEST Global 

QuEST Global is a leading provider of diversified engineering services and manufacturing. The company helps customers in the aerospace, consumer electronics, healthcare, industrial products, marine, nuclear engineering, oil & gas, power generation and transportation verticals to cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle from design and modeling through analysis, prototyping, automation, data documentation, instrumentation and controls, embedded systems development, manufacturing support, vendor management, and in-house precision machining. Through our Global Product Development framework and our on-site/off-shore/on-shore models, we leverage our local presence and global reach to support globalization initiatives for our customers. QuEST Global employs over 1,700 professionals and has delivery centers in India, USA, Italy, Japan, Germany, France and footprints in UK and Spain.

About MSC.Software Corporation 

MSC.Software (Nasdaq:MSCS) is a global leader of simulation solutions that help companies make money, save time and reduce costs associated with designing and testing manufactured products. MSC.Software works with thousands of companies in hundreds of industries to develop better products faster by utilizing information technology, software, services and systems. MSC.Software employs more than 1,000 people around the world. For additional information about MSC.Software's products and services, please visit www.mscsoftware.com.

Safe Harbor Language 

This press release contains forward-looking statements, including statements relating to the features, benefits, capabilities and/or performance of MSC.Software products and services. These statements are subject to risks and uncertainties that could cause actual results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, changes in technology, the end-user computing and analysis environment, implementation and support that meet evolving customer requirements, general industry trends and the impact of competitive products. Furthermore, information provided herein, which is not historical in nature, are forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based largely on management's expectations and are subject to and qualified by risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. 

The MSC.Software corporate logo, Adams, Dytran, Easy5, Laminate Modeler, Marc, MD Adams, MD Nastran, MD Patran, Mentat, MSC, MSC MasterKey, MSC Nastran, Mvision, Patran, SimDesigner, SimEnterprise, SimManager, SimOffice, SimTemplate, SimXpert and Sofy are trademarks or registered trademarks of the MSC.Software Corporation in the United States and/or other countries. NASTRAN is a registered trademark of NASA. All other trademarks belong to their respective owners. 

Source: 

http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=PZ&date=20090617&id=10032042

http://news.morningstar.com/newsnet/ViewNews.aspx?article=/GNW/167462_univ.xml

http://finance.yahoo.com/news/QuEST-Global-Selects-pz-15552541.html?x=1

http://www.globalservicesmedia.com/Content/general200909177431.asp

In this article we will go deep into one specific industry - Global Engineering Services and use it as an example to conclude that there is no one size fits all solution for managing soft-skills. 

The universe of global engineering services is in a state of constant flux as technology and business keeps changing. Adding to this is the demographic shift in engineers. A significant proportion of existing aerospace/automotive and mechanical engineering are now retiring from developed nations such as US, UK, France, Germany and Japan. However, their colleges & universities are turning out far lesser engineering and aeronautical graduates creating a big demand for such engineering graduates from other geographies. In short, a vastly different demography is emerging today to discharge global engineering requirements. 

By the word Services in Global Engineering Services one can infer that they have customer compulsions similar to other service businesses and industries. Thus customer relationship management and communication are important. Similarly, value they offer is judged or perceived based on overall experience and ambience at all touch-points and not just on the service provided or product delivered. This work demands high accountability and work-ethic, a sense of urgency, doing things right first time, on time delivery, minimizing defects, in short - deliver consistently a very high level of quality. 

Soft-skills Universal phenomena

An important stakeholder for a discussion on soft skills is the new-generation engineering force in whose hands we entrust our future. The dynamic young generation is a lot more confident, has excellent access to education and information, tends to be more self-sufficient and independent, much more tolerant to alien ideas, values and thought streams, a lot better in team building and bonding and last but not the least, highly informed, conscious and vocal about social, political and environmental issues. 

However, it is widely documented and well-known that there is a real challenge on the demand side on sourcing people with relevant soft-skills. It is increasingly becoming difficult to allocate trained resources on the job without supplemental soft-skills training. Engineers, taken as a class, tend to be less endowed with soft-skills than some other professionals. The highly advanced mathematical, analytical brain may not be much of a communicator. Whether in the United States, Mexico, India, China, Poland, anywhere, this is a common issue. During their high school education, many engineers would have neglected studying humanities, languages and arts as a result of peer pressure to master science and mathematics, subjects that help clearing competitive entrance exams. In this process an all-rounded development of complementary human intelligences and faculties like creativity and inter-personal skills is stunted. 

A look at contemporary industry practices

Within the Indian industry, there is a definite move towards backward integrating academics with the soft-skill needs including English language, communication and team work. Industries have started collaborating in a structured way with academia thereby resulting in a mutual win-win for both. Through evaluation rigor prior to on-boarding, there is some control on the quality of the incumbents. Some popular mantras include hire for attitude train for skills and hire for learning ability. 

There is at least a three month window before full productivity of fresh candidates resulting in a sail or sink situation for the freshers. It is usually impossible to fit freshers into mission critical projects.

The scope and impact of roles keep increasing as careers progress and therefore the specific interventions and methods to augment soft-skills need to be carefully planned. A learning map published to employees helps to keep them conscious and aware of behavior expected at their level and at the next higher level. A Harvard University study revealed that 85% of jobs & promotions happened because of the candidate s attitude and only 15% due to the store of information he or she possessed. 

Recent developments

A study across four engineering service industries in India revealed the top challenges as - Not asking enough questions , Assuming customer / authority figure is always right , Being afraid to ask questions and Assuming everything is understood based on whatever customer has told us. 

As a result of globalization along with technical excellence, newer skills like knowledge of interacting with trans-national cultural behavior, use of graphic communication including use of annotations with pictures, conducting walk-through using webinar sessions and so forth, creativity and innovation (why, what-if) are emerging in the space of engineering services. Traditional soft-skills continue to be relevant and these include adaptability, open-mindedness, problem solving, decision making, communication skills, self learning and knowledge discovery, empathy and team work, motivation and attitude encompassing initiative, perseverance in adversity and ability to motivate self and others. 

The changing business scenario today has resulted in specific soft-skills assuming importance as shown below

Services Skills Linkage

Project management: Team work, assertiveness, execution excellence.

Knowledge management: Written English, writing skills

Integrated product teams (IPT), Concurrent engineering: Spoken English, verbal communication, use of graphical communication methods

Quality systems and processes: Mindset, attitude, attention to details, assertiveness- including ability to say no when appropriate, Integrity, Honesty, Forthrightness in admitting mistakes

Global project teams: Business etiquettes, cultural sensitivity, Willingness to seek help

Rapid changes in business and technology: Stress (self ) management, flexibility, adaptability, change management

Innovation / Productivity improvement: Open, inquisitive mind, creativity

Conclusion

In these changing times, there is no one method to fit all the situations. The process of effectively imparting soft-skills or any other skill is best done combining communication skills , with appreciation of learner psychology and of course subject matter knowledge. For example, convincing the young generation on the need for a green lifestyle, has to draw on excellent communication skills , include the compulsions of decisions (or indecision) that they can relate with; and also be technically convincing - supported with meaningful everyday examples and data. For global engineering services industry, this appreciation can help bring change of the scale that is required today. 

The author is Competency Development Head, QuEST Global

Source: 

http://www.cxotoday.com/India/CXO_Views/Soft_skills_Crucial_in_Global_Engineering_Services/551-103493-1006.html

• They organize as one global team: the head of sales does not always sit in the U.S.; the head of engineering does     not always sit in India.
•   They implemented a company-wide feedback and incentive system that tracks each person on indicators of     whether he/she is successfully being global and local.
•   They have evolved procedures, a methodology, and a way of working that helps them efficiently collaborate across     borders, doing the local work locally and     “global” work in India.
• They have a mission and vision that guides them away from conceiving themselves as Indian or American, which     keeps them true to their global mission.

Sure, competitors can copy any one of these. But to do it well, they need to copy all of these and that takes time, money and planning. Ajit and QuEST have created a multi-front attack and competitors cannot compete on the same level without losing the ground they already have.
As Ajit says, "Our strategy is something that is easy for others to understand, but hard for someone to duplicate."
Ask yourself the questions below to see how you can beat your competition by provide some services at reduced costs without hurting client relationships.
1. Is there a service or product that can be completed or purchased for less money?
2. Are there distributors that I haven’t considered?
3. Can I cut deeper into the supply chain to get better prices?
4. Can a select few "face" people handle the client relationships while the "hidden" majority completes the work?
Source:

http://www.fastcompany.com/blog/kaihan-krippendorff/outthinker-mavericks-out-innovate-competition/force-your-competition-defend

http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRCRy8yMDA5LzEwLzEyI0FyMDA1MDI=&Mode=HTML&Locale=english-skin-custom

Tech companies such as TCS, QuEST Global, Infotech Enterprises and Tata Technologies are finding new opportunities , because their top customers including Airbus, Boeing, Bombardier and EADS are changing their business models to cut costs with more outsourcing , bring in new risk-sharing partners and get closer to growing markets such as India and China. 

Besides increase in volume from aerospace customers, these companies are seeing growth in number of customers from life sciences, healthcare and energy conservation verticals. 

“We believe that the recent structural changes in the automotive industry will drive increased demand for ESO, and specifically outsourcing to India,” says Tata Technologies president and global COO Warren Harris. The company is in the process of securing a full vehicle programme for a major Asia-Pacific automotive OEM, “which will be a first for an Indian ESO provider,” according to Mr Harris. 

Frost and Sullivan’s automotive and transportation senior director VG Ramakrishnan said that companies from Europe and US are looking to increase their activity in India because of cost arbitrage and talent. “The cost arbitrage is like $25 per hour in India and $75 per hour in US. The value of contracts that will come to India typically start from Rs 200- Rs 300 crore” . 

“India can expect to win about 25% of this offshore engineering spend, about $50 billion due to various reasons, like availability of skilled and trained English speaking manpower, cost advantages, excellent offshore management processes,” says QuEST Global chief marketing officer Bejoy George. “We expect to cross $100 million in revenues this current year,” said Mr George. 

Infotech Enterprises is eyeing opportunities in the auto-sector , rail transportation, heavy engineering, oil and gas. “We are seeing new work coming to us in auto sector for fuel-efficient cars, clean technology-based engines for aerospace, developing medical electronic devices,” said Infotech Enterprises chairman BVR Mohan Reddy.

Source: 

BANGALORE: Bombardier, the world’s third biggest aircraft maker, has invited tech vendors to bid for an outsourcing contract potentially worth up to $200 million over next few years, as the company seeks to increase outsourcing of design projects in order to lower its operational costs. 

While Mahindra Satyam and Capgemini already work with Bombardier and are in discussions with the aircraft maker for this contract , India’s second biggest software exporter Infosys and smaller rival QuEST Global are also pursuing this opportunity. The contract will involve engineering design projects for Bombardier’s CSeries jetliners being procured by Lease Corp. International Aviation and Lufthansa are in transactions worth over $3 billion. 

From around $1.8 billion currently , India’s engineering services outsourcing (ESO) market is expected to reach $50 billion over the next ten years as more aviation and manufacturing companies seek to lower their design costs by outsourcing to the country. When contacted by ET last week, a Bombardier spokesperson declined to provide any specific details of this contract. “Bombardier Aerospace is active in India through associations with Capgemini and Mahindra Satyam in Bangalore since 2005. Bombardier Aerospace in its normal course of business continues to hold exploratory discussions with several entities located around the world to address various business opportunities,” said Marc Duchesne, Manager, Public Affairs & Senior spokesperson, Bombardier Aerospace. Apart from smaller focused firms such as Infotech Enterprises and QuEST Global, large Indian software firms including TCS, Infosys and HCL have been attempting to increase their revenues from aviation design projects.

While Infosys would not comment on any specific customer, a person familiar with the company’s strategies told ET on conditions of anonymity that Infosys is among vendors bidding for the Bombardier contract. “Infosys is in conversation with Bombardier which is the main OEM among the four to five big players in this market. Bombardier’s future road map is throwing up an enormous potential as they have formed the blueprint for C-Series ,” he said. Companies such as Infosys now want a bigger pie of the outsourcing contract, which will include some portion of mechanical engineering design work as well.

Source: 

http://economictimes.indiatimes.com/Infy-Mahindra-Satyam-vie-for-200-mn-Bombardier-deal/articleshow/4913323.cms

At a time when few in Ajit’s home town in India could afford an automobile, Ajit’s uncle drove one to and from his incense shop. Ajit wanted a car too. So in eighth grade, when his friends invited him to play, Ajit said no. He decided instead to work on his new business selling incense sticks, just like his uncle.

This was one of the first unconventional choices that Ajit made in his life. His entrepreneur spirit was strong and so was his desire to make a living. The value of aspirations cannot be ignored, and Ajit says that it is one of the three fundamental requirements for building a successful business.

“To build something and create some value, you have to have aspirations – that’s absolutely important,” says Ajit.

It was Ajit’s early aspirations that led him to reject the traditional path repeatedly, choosing incense over play, opportunity over predictability, throughout his entire life.

Ajit’s willingness to pursue uncommon options led him to co-found QuEST Global, an engineering consultancy  and outsourcing firm, in 1997 with one partner and one client. As of 2009, his company is approaching $100 million in revenue, employs 1,600 people across 17 countries, and services many of the world’s largest firms.

QuEST Global is a leading provider of diversified engineering services and manufacturing. The company helps customers in the aerospace, consumer electronics, healthcare, industrial products, marine, nuclear engineering, oil & gas, power generation, and transportation industries. QuEST helps cut product development costs, shorten lead times, extend capacity and maximize engineering resources availability by providing support across the complete product life cycle.

By dissecting Ajit’s uncommon ability to open up new market space, we see a clear and consistent playbook of proven strategic moves. These are options that his competitors did not see, and by employing these approaches, QuEST Global is leading its industry.

Over the next few days, I will share just a couple of the strategies that the company used to outthink its competition. QuEST Global’s dominance might come from a mere aspiration, but it was the planning and forethought of its management that has made it so strong.

Source: 

http://www.fastcompany.com/blog/kaihan-krippendorff/outthinker-mavericks-out-innovate-competition/find-inspiration-and-create-a

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