MUMBAI: India can be the next hub of global Engineering Research & Development centers and contribute significantly to the digital strategies of global multinational corporations. It is further resulting in higher demand for commercial real estate and data centers.

It is estimated that in the financial year 2022, engineering R&D revenues are estimated to have a compound annual growth of around 8% with multinationals driving growth across products and services.

Besides that engineering R&D revenues are expected to exceed revenues from business process management (BPM) services. After information technology, it is consolidating the former’s position as the second-highest contributor to software revenues.

In the financial year 2019, Engineering R&D centers estimated to have around 20% of cumulative software revenues multinational corporations caught routed around half of Engineering R&D revenues.

This is expected to make a favorable impact on the development of the RMD systems.

According to Cushman & Wakefield, several tier-II cities are manifesting potential for the establishment of Global Capability Centres (GCC). Most of them are state capitals and are attracting fresh talent besides better connectivity, superior physical, and social infrastructure. In addition to that these cities are also ranked higher for living comfort and doing business.

The GCC ecosystem is seen to be driven by digital engineering or Engineering R&D centers across several industry verticals in India. These industries are software, automotive, and banking financial services, and insurance.