American aerospace company- Boeing has reportedly announced that a considerable part of its engineering center operations in Bengaluru, India will transition to certain IT services companies.
Sources cite that the US aircraft manufacturer is outsourcing its infrastructure solutions to Dell. This may include some of the employees at Boeing India Engineering Technology Centre or BIETC in Bengaluru shifting to Dell.
As a part of the global move announced in 2021, Boeing is likely to outsource its cloud services and databases to Dell under a six-year agreement that will cut nearly 600 jobs.
Notably, IT giants like HCL, IBM, and TCS are expected to be in fray for the application business of Boeing, the multi-year infrastructure services and application deal could value approximately USD 150 million to USD 200 million.
For the record, BIETC in Chennai and Bengaluru has more than 3,000 engineers working in the field of electrical & electronic, and mechanical engineering for present and future aircraft. These engineers work on programs with regards to data science and analytics, software technology, flight and vehicle systems, enterprise technology, R&D, and platform solutions.
Along similar lines, British luxury car manufacturer- Rolls-Royce shifted a notable part of its engineering center workings for civil aerospace in Bengaluru to Infosys.
Similarly, in the first half of 2021, Wipro was selected as the strategic technology services partner by Fiat Chrysler Automobiles under which the company established a global digital center in Hyderabad which would support its information and communication technology operations, and Wipro would build a talent pool of over 1,000 skilled consultants and technologists under the effort.
According to Pareekh Jain, Founder of Pareekh Consulting- an engineering services advisory, “some of the large deals in IT and engineering, like TCS-GM, BMW-KPIT, Wipro-Marelli, Airbus-HCL, Rolls-Royce-Infosys, and Spirit AeroSystems- Infosys, among many are due to drivers like cost take-out, affordable investment in novel technologies, and M&A consolidation.”