India & Aerospace Outsourcing: Rolls Sets Up a Subsidiary

The USA is paying attention to its aerospace sector, and asking how to keep the field well stocked with quality talent and maintain its trade surplus in that field. Meanwhile, DID ran a quick article in February 2005 that covered India as a potential outsourcing hub for global aerospace and missile companies. Bangalore is becoming an aerospace hub as well as a computing hub, and Rolls Royce was one of the specific examples used.

Now Rolls Royce has formally established Rolls-Royce Operations India Pvt Ltd. in Bangalore.

This wholly-owned subsidiary will manage the growing volume of engineering work that it is sub-contracting in India. Rolls will use this firm to help it maintain its 1,000+ aero engines serving in long-term defence programs and in civil aerospace, marine and energy applications. Some ring forgings will be exported for use in Rolls’ civil engines.

The subsidiary will also manage subcontracting to engineering analysis and design partners like Quality Engineering and Software Technologies (QuEST), which has a newly-operational Rolls Royce Centre in Bangalore with 100 engineers. There are plans to double that total by 2007, and Rolls credits its 18-month experience with them as the pilot program it needed in order to gain first-hand experience of the operational, commercial, financial and cultural requirements for successfully sub-contracting high quality engineering work to India. See full corporate release.