Boeing to touch down in India

by CXOtoday Correspondent    Sep 20, 2003

NEW DELHI: Aircraft manufacturing giant Boeing is flying down its software division to India, following the current outsourcing market trend.

Boeing plans to set up shop here to handle its IT-related services and provide global software support for its airplane related activities.

Boeing International Corp, Boeing¨s holding company, has sought the foreign investment promotion board¨s (FIPB) agreement for the proposal.

The Indian offshore division will carry out engineering analysis and design together with project management, besides R&D activities for aircraft engineering.

India has always been in close conjunction with Boeing¨s aerospace engineering and technology activities with IT firms like Infosys leading the way. After the closure of Boeing¨s Indian corporate office following a massive global cost-cutting exercise last month, the news appears to be a compensatory effort to win the bid for Air India¨s mega-aircraft acquisition proposal.

In a last ditch move to impress locals, both rival giants Airbus and Boeing have indicated their intention to use India as a manufacturing base for spare parts requirements and IT outsourcing. Industry experts are interpreting the hidden agenda behind the move as a rat race with both Airbus and Boeing vying to clinch the billion dollar deal.

“India ranks very high on our radar. We are devising new ways to establish our mark in India, with both manufacturing activities and also with IT and R&D,¨¨ a senior Boeing official said. ôAlso, Boeing¨s future plans in India go beyond just selling commercial airlines. We are currently in the process of negotiating with the Indian government to set up IT defense and monitoring systems,¨ he added.

With Boeing firmly locked on to its target of setting up an IT arm in India, rival airplane maker Airbus is also expected to follow suit.