IoT (internet of things) promises to be a key growth driver over the medium-to long term. IoT could be an integral technology element in developing analytic platforms. However, to develop capabilities in IoT, Indian vendors need to better develop and manage the eco-system and improve their analytic skills. The ecosystem includes niche solution providers, M2M (machine to machine) platform providers and engineering analytics players. The technology has developed faster than expected. The product development space is likely to change materially due to IoT. Clients incrementally intend to develop platforms which their customers can control and customize.
This trend / viewpoint is likely to reverse in the coming years. In the third phase of evolution, software and IoT (Internet of Things) will likely dominate the engineering services space. The amount of software going into products (other than normal functional needs) is likely to increase considerably. Automotive, medical devices and ISVs are likely to be the key growth drivers for Engineering Services.
