ER&D Market Update

 Recent happenings in the Engineering R&D services market:-

👉 [Ericsson faces the Nokia moment] Last year Nokia backed off from its own cloud platforms and partnered with IBM Red Hat but as Light Reading suggests Ericsson will not go this way because their clients are happy with current bundle of cloud, even if it means high SI cost. Seems similar to how Nokia years earlier justified no demand for touch phones!

👉 [Manufacturing Activity picks up across US and China] Bloomberg and Economy Middle East provides facts that ISM and PMI indices have inched further the 50 mark after consequential lows which is definitely a sign of revival coupled with high export orders for China and depleting consumer inventory numbers in US

👉 [ER&D players remain upbeat in capital markets] J.P. Morgan recent note highlights that the likes of Persistent Systems, Cyient KPIT and other such pure plays will continue to offer robust growth. Couple of months back, analysts at Morgan Stanley vetted the same belief!

👉 [Mainstreaming of niche technologies] In my recent connect with our digital twin and metaverse SMEs Hemant Agrawal and Krishna Zawar - we observed an interesting trend - uptake of DT and metaverse initiatives by federal agencies across India and broader APAC market (case in point being recent DT for Pune and Varanasi awarded to Genesys International Corporation Ltd and the metaverse implementations across virtual Osaka and Virtual Tuvalu island to preserve heritage)