The engineering services industry saw some large deals signed in the last two quarters:

• Meggitt-UK signed an estimated $50 million five-year engineering management outsourcing contract with HCL in January 2010. HCL will provide routine engineering services for Meggitt's global operations.
• Infotech Enterprises and Hamilton Sundstrand Corp signed a four-year multi-million dollar avionics contract in January 2010 to provide embedded software and electronic engineering design services worldwide.
• Mahindra-Satyam and Saab signed an estimated ten-year $300 million contract in November 2009 to develop solutions in India for the global defense and homeland security market.
• QuEST Global and Belgian aerospace major SABCA announced in November 2009 that they signed a ten-year deal worth $100 million to manufacture metallic parts and provide assembly work for Airbus A-350 XWB aircraft’s flap track structures.
• In August 2009, Bombardier announced its decision to outsource engineering services worth $200 million overseas over the next few years.

Such deals are indicators of a strong growth potential for the engineering services outsourcing (ESO) industry in the years ahead. Several research firms have estimated the market size for engineering services globally:

Exhibit 1: ESO market size estimate by research firms

Source: ValueNotes Research

*Only automotive design and engineering offshoring to India