The aerospace market is up for grabs. With aircraft manufacturers and defence companies looking to control costs by outsourcing design and management systems, Indian software companies are lining up plans to tap this space.

India is already a software services outsourcing hub. According to a report, global spending on engineering services stood at $750 billion in year 2004. Of this, aerospace accounted for eight per cent. Studies by National Association of Software and Service Companies (Nasscom) on this front suggest that it could rise to $1.1 trillion by year 2020.

The study said that the total offshore engineering expense is expected to grow between $150 and $225 billion by year 2020. Boasting of a great talent pool , India stands to pick up at least 25 per cent of that, it is estimated. The services provided by Indian software companies to aerospace firms include aircraft design, development of on-board electronics systems such as flight control and engine control, and ground systems like air traffic management.

A report that dealt with this topic suggest that aerospace is being focused more than the others, especially by companies like HCL Technologies. The company has over 30 aerospace customers including Boeing Co and Airbus.

In the days to come, it is believed that Boeing would increasingly use Indian software companies to get technology work done cheaper, according to reports quoting Boeing sources. Further, from the defecne players side, United States defence contractor Lockheed Martin plans to send some technology work to India, a report added.