Engineering Services: A Huge Market

Global spending for engineering services is currently estimated
at $750 bn per year, an amount nearly equal to India's entire gross domestic
product in 2005. By 2020, the worldwide spend on engineering services is
expected to increase to more than $1 tn.

Key sectors that dominate global engineering spends include
high-technology/telecom, automotive and aerospace-accounting for over 55% of
the total. Other sectors include industrial, defence, utilities and
construction.

To date, offshoring of innovation services has largely been done
in advanced countries-only 9% of the world's budget for engineering found
its way to low-cost countries.

Of the $750 bn spent today, only $10-15 bn is currently being
offshored-a tiny fraction of the total. India brings home about 12-15% of
today's offshored market, which it currently shares with Canada, China,
Mexico, and Eastern Europe. This trend towards building increasingly global
R&D footprints, observed over the past few decades, is expected to
accelerate over the coming years with emerging economies-notably India
emerging as the destination of choice for these expansions.

Rolta India

Rolta India is a provider of computer-aided design (CAD), computer-aided
manufacturing (CAM), geo-spatial information system (GIS) solutions, e-business
and other information technology (IT)-related services. It is also a provider of
plant design automation (PDA) solutions and services in India. Rolta declared
its results for the third quarter ended March 31, 2007; Revenue stood at Rs
185.6 crore, an increase of 30.8% from Rs 141.9 crore in the same period last
year. Net Profit stood at Rs 45.5 crore, an increase of 37.9% as compared to Rs
33 crore in the same period last year.

During the quarter Rolta appointed Ben Eazzetta as president of
International Operations. He will head Rolta's subsidiaries in the US, Europe
and the Middle East. Prior to Rolta, Ben Eazzetta was president of Intergraph's
SG&I (Security, Government, and Infrastructure) division at Huntsville, US.
Rolta also became the Principal Member of OGC (Open Geospatial Consortium). It
is also expanding its presence in the Asia Pacific region, Qatar, Abu Dhabi and
Australia. Rolta has development centers in the US, Canada, Germany, the
Netherlands, Saudi Arabia, UAE and India.

Infotech

Infotech Enterprises is an India-based information technology (IT) consulting,
services, and business process outsourcing company It offers services across a
range of technologies to include the utilities, transportation and government (UTG),
and the manufacturing and industrial products (EMI). It declared its results for
the fourth quarter ended March 31, 2007; revenue stood at Rs 151.2 crore, an
increase of 5.7% on a q-o-q basis as compared to Rs 143 crore and an increase of
40.2% on a y-o-y basis from Rs 107.8 crore. Net Profit for the period stood at
Rs 24.9 crore, an increase of 32.5% on a q-o-q basis as compared to Rs 18.8
crore and an increase of 49.8% on a y-o-y basis from Rs 16.6 crore.

During the quarter Infotech launched its operations in Kakinada
with a development center created with the joint effort of STPI (Software
Technology Park of India) and Infotech to develop a tier-2 destination for IT
companies. Infotech is expanding business in Automotive and Marine Engineering
Services with focus on avionics and embedded software development. It also
expects its revenue to reach $120 mn in this fiscal as compared to $83 mn in the
last fiscal.