Cybage Recognized as a Strong and Niche Player in Media and Entertainment Segment

— Channel Times

​​India is the leading offshore destination in delivering engineering R&D services with a 22% market share. This was the highlight finding of the much awaited study, "Engineering R&D: Advantage India", conducted by Zinnov Management Consulting, a leading Globalization and Market Expansion Advisory firm. Released today, the study is a detailed work on the fast-growing Engineering R&D and Product Engineering Services segment in India. 

The study read that Service Providers are increasingly leveraging new opportunities created by Cloud, Enterprise Mobility, New Media and Entertainment. Additionally, as a part of Zinnov's Global Ranking of R&D Service Providers, it evaluated competencies of various players across geographies and found out that Cybage is emerging as one of the strong and niche players in New Media and Entertainment segment.

The study brought to light that the market in India is expected to grow at a 14% CAGR from USD 14.7 billion in FY2012 to USD 42 billion by 2020 and is also expected to outpace the IT growth rate in India.

Globally, organizations are again focusing on R&D, after a period of lull owing to factors such as the economic crisis, natural disasters in Japan, etc. While North America and Europe still account for a major portion of R&D spend with 35% and 32% respectively, it read that the share of emerging geographies is witnessing a substantial growth rate of about 16%. The study says that the ISV segment in FY2012 has contributed most significantly to R&D from North America with 35% share, while the Automotive sector spend dominated R&D investments in Europe and Japan, with 54% and 49% share, respectively.

Speaking about the report, Pari Natarajan, Chief Executive Officer, Zinnov said, "There has been significant activity in the Indian captive landscape in FY2012, with presence of 874 centers as compared to 836 in FY2011 and the determining factor for this is that strong focus on emerging nations as target markets across major verticals."

Automotive, Healthcare and Industrial verticals are hot sectors that are poised for growth globally and are correspondingly expected to drive future MNC captive center growth in India. The study also read that the MNC Captive centers are also growing in maturity, with many companies starting their core research teams operating from India.