How India can lead the next wave of product engineering services beyond cost arbitrage?

India's technology sector is undergoing a massive transformation. From being cost-effective to exporting $200 billion of IT products in 2023-24, the change is there for everyone to witness. India today ranks among the top ten countries in AI funding, signifying that the global R&D engine is being rewired. 

The momentum India has picked is commendable, but the real question is whether we can sustain it? Experts agree that keeping the pace needs a multidimensional perspective. 

The country must prioritise innovation over execution. Further, the focus must shift to outcome achievement rather than the net output. So, what does it truly take to move beyond cost in product engineering services? 

Let’s explore.

a) AI-Led Innovations:

AI is a new foundation for software engineering. ChatGPT and GitHub Copilot are refining how products are built and decisions are made. LLMs are proving crucial inputs in the ways value is delivered to end consumers.

To lead the next wave, Indian firms must go beyond just integrating AI into existing systems. Rather, they must weave and build their business model around it. IT firms should focus on developing adaptive and industry-agnostic platforms that are capable of accomplishing tasks across functions and processes. 

From handling virtual agents to process mining and advanced analytics, these platforms should offer a one-stop solution to all the needs of clients. While India has the talent to achieve this feat, the thing IT firms should focus on is the investment in an AI-native future. 

b) Build GCC Capabilities:

Global Capability Centers (GGs) are evolving. Their growth is now underlined by ownership of end-to-end product engineering. India’s deep talent pool and progressive policy frameworks are helping it emerge as a GCC. The growth is also fueled by the country's capability to offer complete solutions - from ideation to development, and lifecycle management.

These centers are also catalysing product vision and R&D, besides contributing to market differentiation. Going forward, India must double down on building GCCs that offer robust innovation aligned with global product goals. 

c) World-Class Benchmarks:

India has a diverse pool of technology engineers. The talent is amazing and has made the country a preferred ground for innovation. To sustain this edge, Indian IT firms must go beyond hiring at scale. The focus should be on enrolling world-class engineers who have demonstrated credentials in their respective domains.

The IT firms should also focus on continuous upskilling, strong collaborations, and a culture of experimentation to shape minds and develop professionals. Organizations that make these investments today will lead technology breakthroughs tomorrow. 

d) Entrepreneurial Ecosystem: 

India’s startup ecosystem is driving innovation across AI, cloud, fintech, etc. This entrepreneurial energy is transforming industries by redefining the future of product engineering. Leading IT firms are leveraging this growth and investing in startups to accelerate digital transformation. The coming together of different stakeholders also results in the co-creation of cutting-edge solutions across new markets. Further, these partnerships are enabling a faster go-to-market strategy. 

Owing to all these developments, India is now well-poised to emerge as the global epicenter of tech-driven innovation, where enterprises and startups grow together and bring transformative change to the world. 

e) Research and Development:

Attaining sustained leadership in technology services is complex. It depends on varied factors, prominent among which is a deep commitment to research and development. As global enterprises seek partners to co-create next-generation products, India must position itself as the Primary Innovation Destination. To that end, Indian companies need to elevate R&D from a support function to a task of strategic prominence.

The focus of innovation must be on achieving faster prototyping and accelerated time-to-market. Remember, whether AI, edge computing, or domain-specific platforms, meaningful research will set leaders apart. The opportunity is clear: go beyond delivery and become the partner enterprises trust to build what’s next. 

Conclusion

India has already proved its capabilities in service delivery. The opportunity now is to lead through innovation. The country stands on the threshold of becoming a preferred destination for product engineering and technology-driven transformation.

This future will be built on AI-first thinking and robust investments in R&D, besides creating a world-class engineering culture. The stronger collaboration across enterprises, startups, and academia should also rank higher among the pressing agendas of IT companies. Now is the time to shift gears — from engineering for the world to creating what’s next for the world.

-By Dhwanit Shah, Senior Vice President, Sales and Delivery – Digital Solutions, MSys Technologies