ER&D companies face headwinds in new twist

For the first time in the past 12 quarters, the cumulative headcount at five major pureplay ER&D (engineering, research and development) firms shrank to 77,560 at the end of June, spotlighting the industry’s cyclicality differential with technology outsourcing that’s finally beginning to add jobs – and a dash of much needed colour to pallid placements at engineering schools.

The overall growth of ER&D firms is still higher than IT services companies, but the trajectory of both segments have reversed in the recently concluded quarter.