Synopsis
India has long been a base for technology support and back-office functions for global companies, but firms are increasingly relying on local engineering hubs to assist in product innovation.Listen to this article in summarized format
India has long been a base for technology support and back-office functions for global companies, but firms are increasingly relying on local engineering hubs to assist in product innovation.
"The contribution of Indian GCCs on IP is in general increasing," Radhakrishnan Kodakkal, newly-appointed head of Daimler Truck Innovation Center India, told Reuters, adding that AI would further speed up innovation and engineering work.
He said the trend had begun before the recent surge in AI adoption but was likely to accelerate further as companies increasingly deploy the technology in engineering and product innovation.
Manufacturers worldwide have faced mounting pressure since the pandemic as shifting trade policies, tariffs, and geopolitical tensions have forced companies to rethink sourcing strategies and restructure supplier networks.
Kodakkal, who was previously at Whirlpool and Philips, cited copper sourcing in wiring harnesses as one example where manufacturers are now tracking material composition more closely under changing tariff structures.
"One example I could say is predicting the raw material cost," Kodakkal said, adding that teams use AI and multivariate analysis to model movements in steel and other commodity prices.
Changing hiring landscape
Daimler Truck's center in Bengaluru, which works across the full vehicle lifecycle, including engineering concepts, simulations, software, connectivity, and analytics, is partnering with universities and training recruits internally to find "the right talent," the executive said.
The advent of AI and India's growing shift from a technology support base to a product innovation hub is intensifying competition for specialised talent.
Kodakkal said there was "a lot of need around niche talents" in areas such as AI, cybersecurity and digital technologies.
