Strategic Guide Indian Rd Centers-2008 (3)

8/9/2019 Strategic Guide Indian Rd Centers-2008 (3)

1/41

Centers 2008Unveiling the R&D Offshoring Scenario in India

Industry Report

May 2008

Zinnov LLC


2/41

Global R&D spend is expected to grow at a CAGR of 3.5 per cent withEurope and Japan emerging as equally competitive R&D spenders

R&D* Spend by Geography (2008)Global R&D* Spend(2005 2010)

Euro e

1200

B i l l i o n

)

CAGR 3.5 %

30%

NorthAmerica

1100

s p e n

d ( i n

U S

Japan22%1000

G l o b a

l R &

900

950

2005 2006 2007 2008 2009 2010

ROW5.26%

*Note: It includes R&D spend by various other industries such as engineering services with embedded systems R&D, Energy, Consumer, Healthcare, Industrial

domains etc.References: Computing Research Association, EIU, European Industrial Research Management Association, OECDZinnov Analysis


3/41

R&D offshoring constitutes 14.4 per cent of the total offshoring to India withR&D centers commanding 62.7 per cent of the market share

Indian Offshore IT Market 2008(in USD billion )

R&D Offshoring Market Size 2008( in USD billion )

50

R&DCenters62.7%

i l l i o n

)

30

40

n u e

( i n

U S D

20

Vendors37.3% R

e v

0

10

IT R&D ITES Total

Total = USD 9.35 Billion

R&D Offshoring (2)IT Services (1) Total OffshoringITeS (1)

Total =USD 64.85 Billion

Source: Nasscom, Zinnov Analysis 1- Market size includes exports and domestic revenues 2- R&D includes Software Product Development, Embedded Systems and specific areas of Engineering Services


4/41

The R&D offshoring industry can be sliced into three horizontals

Definition

Software development is the translation of a user need or a product idea into an operationalcomputer based software. The product development lifecycle includes conceptualization,

Horizontals

Development (SPD)

requ remen spec ca on, sys em ana ys s an es gn, pro uc eve opmen , es ng anmaintenance. It encompasses skill sets in Application Development, Systems Programming,Web Technology Programming, Network Programming, Database Programming , User Interface design, Product Planning, Program Management , Manual Testing, AutomationTesting, SCM etc.

An embedded system is an electronic system designed to perform pre-designated functionsin a machine. It is used like an embedded device/chip in a end-product coupled with other mechanical software parts. Its acts as interface between hardware and software of an

.includes skills in embedded programming, hardware designing, manual and automationtesting. It also includes developing firmware which is designed to be augmented into an end-user product like mobile phone, automotive system, aviation systems etc.

Engineering Services

It includes development of software catering to engineering requirements of various industrieslike mechanical, automotive, aerospace etc. Engineering services R&D includes stages of product lifecycleProduct Design & Development, Design Support, Engineering Analysis &Modeling, Prototype Build, Testing, Verification, Validation, Manufacturing EngineeringSupport, Knowledge based Engineering, Technical Publishing and other product supportactivities, PLM (Product Lifecycle Management) etc. It needs a diverse set of skills acrossmechanical engineering, computer software hardware engineering and electrical engineering.


5/41

The three horizontals have been segmented across eight industry verticals

DefinitionVerticals Examples

It includes pure play semiconductor firms working on embeddedsystems like chips.

EDA /Semiconductors Intel nVidia AMD

It includes firms developing software to be augmented into another device serving as an end-product for a user-based functionality.

ConsumerElectronics LG Samsung Philips

.It includes mobile applications, networking software, graphical user interface designing.

Telecom &Networking

It includes firms working on software related to operating systems,systems level programming, networking including protocols, security,remote connectivity etc.

SoftwarePlatform &Systems

Cisco Avaya Siemens

Novell Linux SunMicrosystems

It includes firms working on enterprise applications like ERP, CRM.EnterpriseSoftwareProducts

It includes firms working on development of online softwareConsumer

SAP Intuit Oracle

,search, online space.

Products

It includes firms developing automated systems like notebooks,mobile computing accessories, PDA, servers, desktops, scanners,Tablet PCs etc.

ComputingSystems HP FujitsuIBM

It includes firms manufacturing products like automotives, aerospacewhich have computer software and hardware as an integral part of theend- product functionality.

Manufacturing Ford Daimler Chrysler Boeing


6/41

R&D offshoring in India started way back in the 1980s; it gained momentumonly after 2002 and is now poised for the next phase of growth

Growth Factor Value Factor Evolution of R&D Offshoring

Exploration Identification Growth Harvest

Access to Localmarket

Skilled R&D talent

Availability of skilled talent

Potential for cost-savings

Potential for cost-savings Spree of Product

Development firms

Entry of TexasInstruments

Dot-comBust

Entry ofMicrosoft

Entry ofMotorola Few Product

developmentfirms exit India

1980 1990 1995 1998 2000 2002 2004 2006 2008 2010

Years Inflection PointGrowth triggers


7/41

Between 2003 and 2005 a large number of MNCs came to India for setting upR&D centers

181180

200MNCs Setting up R&D Centers in India

140

160

e n

t e r s

8293

8780

100

120

e r o

f R & D

36 3853

2440

60 N u m

0

20

On or 2001 2002 2003 2004 2005 2006 2007Before

2000

Source: Zinnov Research

Year of Establishment Total 594 R&D

Centers


8/41

Currently there are 594 R&D centers in India operating in SPD, EmbeddedServices and Engineering Services

Embedded S stems

IllustrativeDistribution of R&D Centers 2008

120

Engineering Services84 e

r s i n

t s

Delphi LSI Corp. Motorola

Altair Engineering Arvin Mentor BMW

f R & D C e n

t

g y S e g m e n

GoogleMicrosoftYahoo

Bosch a erp ar or

Software ProductDevelopment

390 e r c e n

t a g e

T e c

h n o

lHPOracleAdobe

P

KeteraSynygyYodlee


Total 594 R&D Centers


9/41

These R&D centers are spread across various verticals: enterprise softwareproducts and telecom & networking are the key verticals

51 594

Vertical Distribution of R&D Centers 2008

115

48

82

75

153

Consumer sof tw are Sof tw are platf orms/Systems

Telecom/Netw orking Computing systems Total

15

Enterprise Software ManufacturingConsumer Telecom & Computing TotalConsumerSemiconductoro ware

Systemso ware e wor ng ys emsec ron cs

Total 594 R&D Centers



10/41

About 49 per cent of the total R&D centers in India have revenues less thanUSD 100 million

22200+

Revenue vs. Headcount Analysis for R&D Centers

283 Total = 594

40

100 - 200

50 - 100

86

90 d c o

u n

t

H e

76

135

13

309 28

45

14

3210 - 50 51

156

1910

1 - 100 100 - 200 200 - 500 500+Global Revenue in USD Millions



11/41

70 per cent of the smaller R&D centers focus on software productdevelopment

33Engineering

Services

.

283Total = 594

45EmbeddedSystems

56

20628

23

o wareProduct

Development76

37 48

986

58

1 - 100 100 - 200 200 - 500 500 plus

Source: Zinnov EstimateGlobal Revenue in USD Millions


12/41

About 53 per cent of the engineering services R&D centers have aworkforce of more than 200 engineers

25

Headcount vs. Horizontal Segment Analysis for R&D Centers

Engineering175

158

Total = 594

30

14

11

64

EmbeddedSystems

139

122

15

25

20

120 116

87

SoftwareProduct

Development

67

200+100 - 20050 - 10010 - 50

Headcount RangeSource: Zinnov Estimate


13/41

Bangalore, NCR and Pune together comprise the majority of R&D setupswith about 494 centers operating from these 3 cities

Bangalore 312

Location Distribution of R&D Centers

Pune

Software Product

95

NCR

Embedded

Systems

87

Hyderabad

Chennai

EngineeringServices

57

32

OthersTotal = 594

11

0 50 100 150 200 250 300 350

Source: Zinnov Research, Zinnov Analysis

Number of R&D CentersNote: Others include cities like Chandigarh, Ahmedabad, Coimbatore, Nashik, Mumbai, Kolkata


14/41

Currently the R&D offshoring industry in India is worth USD 5.83 Billion software product development being the dominant segment with 53 per cent

of this market Market Size of R&D Centers 2008

(As per technology segments)

Engineering

21%

Software Product

53%

26%

EmbeddedSystems

Development

Total Market Size is USD 5.83 Billion

Source: Zinnov Analysis


15/41

Most phases of the software product development value chain are currentlybeing offshored to India

-

ProductConcept Design Development Testing Support

ed

Objective

To conceptualize anew product ideacatering to customer needs.

Design a scalable,high performancemodular product

Ensure that a highquality, defect freeproduct is ready

Provide technicalsupport tocustomers

Developing a productbased on user-requirements.

Product Development Unit/ Interface Testing Com onent/ Feature Technical Support

CommonlyOffshored

Feature Definition

Project Planning

Product Maintenance

Re-engineering andMigration

Testing Regression Testing Testing Automation Product Validation /

Acceptance

(Level 1 & 2)

PerformanceBenchmarking

HighPotential

Prototype Design /Architecture

TechnologyEvaluation

Prototype

RequirementsGathering, Analysis

Software

RequirementManagement

ProgramManagement

Technical Support(Level 3 & 4)

Shared Services(F&A, HR, IMS,Professional

PrototypeValidation

ProjectManagement Services,Documentationservices)

Not BeingOffshored

Concept Definition

Concept Evaluation

High-Level Designof Product Concept


16/41

SPD is estimated to be a USD 3.15 billion market in India with enterpriseproducts segment owning the largest market share of about USD 0.97 billion

Market Size of R&D Centers 2008 Software Product Development IndustryVerticals 2008

-ed

2022% n

Telecom &Networking

15

19%31% i n U S D B i l l i o

Enterprise SoftwareProducts Software Platforms

& Systems

10

3%

R e v e n u

Semiconductor /EDA

Others

0

7%ComputingSystems


Development Systems services


m e eSystems

o ware ro ucDevelopment

TotalServices

Source: Zinnov Estimates


17/41

In the case of embedded systems, India is gradually expanding itscapabilitieshigh-end R&D in embedded domain is yet to be offshored

-

Conceptualization Design &DevelopmentPrototyping Verification &

Validation

Embedded R&D Value-ChainSPD-

ed ES

Static & dynamicAnalysis

Firmware & diagnostics Application software

Prototype studySoftware

Understanding the localneed

re- ayou anPost-LayoutVerification

Regression testing

m e e so ware Digital/Analog IP RTOS Device drivers Board support package

Prototype tapeout

Prototype building

RequirementDocumentation

Product conceptualization

Reliability testing ATPG test vector

Generation Package QA

Stacks Prototype testing

Prototype analysisHardware

Core design & architecture Model building Algorithm evaluation and

layout PCB design

Manufacturing Test Qualification /

Application test Field test

os ana ys s an u urecompatibility

Design specifications

Verilog coding Platform porting Board/ System design VLSI Design

Substrate testing

Present & Near-Term R&D Offshoring Future & Long-Term R&D Offshoring

FPGA ASIC/SoC/SiP


18/41

The R&D of embedded systems is currently estimated to be a USD 1.54billion segment in India with telecom & networking as its largest vertical

Embedd-

Market Size of R&D Centers 2008 Industry Verticals of Embedded Systems 2008

ed

20 23%

Consumer Electronics

15

40% U S D B i l l i o n

Telecom & Networking Semiconductor / EDA

1019%

R e v e n u e

i

ManufacturingOthers

0

5%13%




m e eSystems


Totalng neer ngServices



19/41

Engineering services in India is catching up towards high-end offerings

Engineering Services Value-ChainSPD Embedded

ES

ProductConceptuali-

zation

Conceptualizing product functionality Benchmarking of process, product and costs Designing the aesthetics and usability of product Market Research, Cycle Simulation Preliminary Design Analysis

Level of OffshoringComplexity

Product Designand Modeling

Complete product design including assembly Component design on CAD, Pro E, Design

Automation, Drafting and 3-D modeling, Conversionsbetween different platforms

Desi n &

Conducting virtual simulations of designs to study apart, sub-system or system for its behavior in operating

environment Optimizing product performance under real-lifeEngineering

Development

Product

influencing factors such as temperature, vibration, fluidflow, fatigue

CNC / CMM Programming Casting, Forging and Fabrication Engineering

na ys s

(ManufacturingEngineering

Services) Technical Support, Design Support GIS- Document Conversion Le ac Conversion

Assembly Jigs and fixtures Ground Support Equipments

ProductSupport

, Re-Engineering / Reverse Engineering Acceptance and Test Procedure Component Maintenance Manual Illustrated part catalogue, Service bulletins

Low Medium High Low Medium High


20/41

At present, it is estimated as a USD 1.27 billion market with themanufacturing domain constituting USD 0.52 billion of the total market

Market Size of R&D Centers 2008 The Industry Verticals of EngineeringService 2008

SPD Embedded

ES

2020%

Semiconductor /EDA

15

42% 16% U S

D B i l l i o n

)

Manufacturing Telecom &Networking

10

9% R e v e n u e

( i

Consumer Electronics

0

7%6%

Software Platforms/ Systems

ComputingSystems



m e eSystems


Totalng neer ngServices Total = USD 1.27 Billion



21/41


22/41


23/41

Bangalore houses about 80.8 thousand of R&D talent; Pune has the nexthighest talent base of 22.3 thousand professionals

Bangalore

Installed R&D Talent Pool Across Locations 2008

80,885

Pune 22,382

NCR 20,319

Hyderabad 13,126

ChennaiTotal = 146,760

10,048

1000 16000 31000 46000 61000 76000

Installed Talent Pool


24/41

Availability of highly skilled workforce and need for more innovation are themajor drivers for offshoring R&D to India

Conce tual

Key Drivers Description

Ability to foster innovation by leveraging the potential

Importance of the driver

1of the talent pool available across different nations andtheir proximity to growing markets.

Differences in compensation levels and operating costs

Development

2across nations varying due to diverse set of economicconditions.

Availability of domestic market opportunities in a particular

os ompe veness

Local Market3

company.

Availability of well qualified, English speaking, skilledand MNC-suitable workforce

Opportunities

Skilled Manpower,4

Availability of service provider firms operating in similar businesses and bolstering the IT ecosystem of theVendor Supply Base

5

country

Note: Importance of driver indicates how global firms prioritize their motivations for establishing an India center for R&D. It is purely a qualitative ratingbased on Zinnovs observation across key product development firms globally.Source: Zinnov Analysis


25/41

India has emerged as a prime contributor to the global R&D capabilities ofMNCsit is now seen as a high-value hub for innovations

1

Companies with R&Dcenters in India INNOVATIONS INDIA

Yahoo Hotjobs, Yahoo! Kids, Yahoo! Avatar, Mixd, Yahoo! Podcast Service, Farechase and SMS back-up

AdobePage Maker 7.0, Frame Maker, RoboHelp, PostScript, Acrobat Reader on handheld devices, Acrobat Reader onLinux, Photoshop Album Starter Edition, and Premiere Elements.

Fusion Middleware (Identity management and application sever team), Oracle Database, JD Edwards,Integration Products & Discoverer and Retek

Intel Woodcrest, Tulsa, Clovertown, Tera Research Chip (50 per cent developed from India), Centrino mobileplatform, Teraflop processor, Xeon and Santa Rosa.

Texas Instruments India Engineering Center has contributed to key products - Application Server 7.1, installer and packaging for Java Enterprise System 1, portal server, Web server, Identity Server and Meta Directory

IBMHursley DDC, WBI Adapters DDC, Rational Products, Linux Technology Center, OS/2 DDC. IBM India center also rovides su ort for diverse roducts i.e. Web A lication Servers, WBI, Middleware Technolo ies, OfficeAutomation Products, Distributed File Systems and Operating Systems

Symantec India center works on complete ownership model for products like Security 2.0, Information 2.0, File SystemAnalyser, AIDA (Automated Inference of Data center Anomalies) and Malware variance

CiscoIndia center key contributed to development team of 7500 router platform, WAN technologies, BPX switches.Small Network Management Solution (SNMS) and Cisco Emergency Responder (CER) was completely

conceived and developed entirely in India.


26/41

The cost of product development in India is about one-third of that in theU.S. However, value-based benefits are now gaining ground over cost

com etitiveness

6

Annual Cost per FTE - Headquarters in the U.S. vs. R&D Centerin India

$180,000 $180,000

S D )

T E

/ Y e a r

( U

Cost

differential of about 1:4

$120,000

Cost

differential of about 1:3

$120,000

C o s

t /

$60,000 $60,000

$0

Captive US (West Coast)

$0

Captive US (East Coast)



27/41

Scalability, productivity and cost escalation are some of the key challengesfaced by R&D centers (1/2)

Headquarters are concerned about the increase in cost at R&D centers1

Key Challenges

ompan es ave seen a cos ncrease o per cen o per cen year-over-year Cost increase is the higher at smaller R&D centers due to difficulties in resource

optimization

Attrition

e a r on eve s a cen ers range rom per cen o per cen . scompanies dont have a concept of bench strength or buffer resources, the impact of attrition is higher compared to IT services firms

Attrition related best practices such as structured knowledge transfer, resourceshadowing are not common at R&D centers.

2

R&D center heads seem to easily get bored once they have completed the hiringprocess for the India center

R&D centers who are growing at a smaller pace and R&D centers whose globalrevenue is sta nant encounter hi her attrition at the senior levels.

ManagementStability

3

ProcessAdo tion

R&D centers have minimal processes. The Headquarters are not able to accuratelytrack the progress of the projects

As R&D centers are a part of the organization, it is very difficult to enforce process

4

discipline only at the India R&D center.


28/41

Scalability, productivity and cost escalation are some of the key challengesfaced by R&D centers (2/2)

R&D centers are not able to hire at a rapid pace. They need resources with a varyinglevel of skill set and ca abilit . The dont have the recruitment bandwidth to screen a

5

Key Challenges

large number of engineers Lack of career options makes it difficult for them to attract good talent from IT services

firms.

Productivity

Productivity at the India centers tends to be 30 per cent to 40 per cent lower thanthat among the U.S. resources

Lack of product roadmap clarity or delays in decision making in the U.S. results in

significant idle time for the engineers Qualit of the talent lack of domain ex ertise and lower ex erience levels are

6

,considered as the major reasons for lower productivity at the India centers.

R&D centers are liable to pay taxes as per the transfer pricing regulations in India. TheIndian subsidiary is liable for the tax on the profits generated from the activities

Tax

.

Transfer Pricing Technique is used to determine the profit attributable to the subsidiaryunit. The price of services rendered by the PE to the head office or by the head officeto the PE is calculated on an arms length basis, i.e., a price which is applied in aransac on e ween persons o er an assoc a e en erpr ses. n an average,

amounts to about 15 per cent over and above the total operational costs of the Indiacenter.


29/41

2007 witnessed a 10 per cent to 15 per cent increase in the operatingcosts of the R&D centers due to salary escalation and rupee appreciation

1

Cost Escalation in India Operations (YoY)

People costs accounts for about 62 per cent of the operating costs of R&D centers

16.2%

Y e a r

( U S D )

30,47034,665

41,117

e C o s

t / F T E /

2005 2006 2007

A v e r a

g

Source: Zinnov AnalysisNote: Onsite Location is assumed to be US


30/41

The cost per FTE in embedded systems R&D is higher than that of softwareproduct development and engineering services R&D

Parameter SPD Embedded SystemsEngineering

Services

(Cost per FTE per

annum in USD)41,117 45,228 36,121

eop e os - - -

Infrastructure andFacilities 9% - 25%

12% - 25% 10% - 22%

Communication Travel 3% - 20% 5% - 20% 8% - 15%

Government/Re ulator

Cost- - -

Professional ServicesCost

3% - 13% 3% - 13% 3% - 13%



31/41

Most of the R&D centers in India incur an operating cost of USD 35,000 toUSD 55,000 per FTE/ year

6%100%

Total Operating Cost/FTE/Year

24%

75% C e n

t e r s

100%40%50% g e

o f R & D

18%25% P

e r c e n

t

12%0%

USD 55,000 Total

Cost/ FTE/ year

Note: Based on the sample of companies of different sizes across domains, studied by ZinnovSource: IDC forum; Zinnov Analysis


32/41

Best Practices: Companies have tackled cost escalation by addressingvarious aspects of their operations

Productivity Improvement

25

Best Practices

People Cost OptimizationTax/Professional Services

34

Infrastructure OptimizationTravel and Communication


33/41

Bangalore has the highest number312 R&D centers followed by Puneand NCR with 95 and 87 centers respectively

257

7

3

o a um er oR&D centers

87

231722

City Name

10

NCR

20

33

95

57312

29

Pune 16169

16

62

77

612

32y era a

0 - 50

50 - 100 200+

100 - 200

Headcount Range89

Chennai95

Note: NCR includes Chandigarh , Pune includesMumbai, Other locations account for about 11 R&DcentersSource: Zinnov Research

Total R&D Centers = 594


34/41

High availability of desired talent pool makes Bangalore the top choice;Pune has recently emerged as a high-growth R&D location

oca on ssessmen o esLow Medium Potential Follower

Chandigarh

a l e n

t P o o

l Coimbatore

i l i t y o

f R & D

PuneNCR

Hyderabad

Chennai

Bangalore

A v a

i l a

High

**Low

High Potential Frontrunner

Note: * Position of bubbles indicates the attractiveness of a location as an R&D destination.**Cost Perspective: takes into consideration set up costs and operating costs


35/41

Bangalore and Pune are the best locations for setting up R&D centers,Chandigarh and Coimbatore are emerging as feasible low cost options

Parameter HumanResources Cost InfrastructureSupport

EcosystemCity

Perception Overall Rating

Overall Location Assessment

Bangalore

Pune

Delhi/ NCR

Chennai

Coimbatore

Chandigarh

Source: Zinnov AnalysisNote: Location suitability ratings are given as per the mutual comparison of the 7 cities under consideration

FavorableNot Favorable


36/41

NCR stands as the most expensive location, while Hyderabad has thecheapest facilities cost among Tier I cities

Facilities Cost* Differential across Cities, 2008

158

102 10092

85

10 8

H derabadBan alore ChennaiNCRPune Chandi arh Coimbatore

Source: Cushman & Wakefield: Indian Office Market overview (2007), Zinnov Analysis

Facilities cost includes lease deposit and monthly rental costs for central business areas in these citiesScore of each city indicates a percentage difference between the rental rates of these cities, all cities are benchmarked against Pune which is at 100.


37/41

The talent pool in Pune and Hyderabad is not easily open to relocationunless provided with extremely unique incentives

Talent pool migration preferences across locations

Bangalore Pune Hyderabad NCR ChennaiDestination

CitySource

Bangalore

une

Hyderabad

NCR

Chennai

Note: Willingness to migrate shows the perception, willingness and preferences of the talent pool for relocating from one city to another. Reasons for

Low Moderate High Very High Willingness to Migrate

Source: Zinnov Interviews and Analysis

willingness to move could be compensation level, brand name, job profile, cost of living, ecosystem and friendliness of the city, domestic andinternational connectivity, and the cultural background and origin.

Only the top 5 product development cities are considered for this analysis. The above analysis is drawn specifically for product development talent pool installed across these 5 cities. It excludes expatriate talent

preferences.


38/41

Installed talent pool in Indian R&D centers is currently 146,000 of whichsoftware product development engages about 52 per cent of the

rofessionalsTalent pool in R&D centers, 2008

Segments Bangalore Pune Delhi/NCR Hyderabad Chennai Grand Total

SPD 48,773 8,851 6,562 8,636 3,889 76,711

Embedded

Systems

17,201 3,990 8,557 2,890 1,320 33,958

EngineeringServices 14,911 9,541 5,200 1,600 4,839 36,091

Grand Total 80,885 22,382 20,319 13,126 10,048 146,760

Note: This includes talent pool only for the R&D centers in these locations

Talent pool analysis has been done only for 5 major R&D suited locations.Source: Zinnov Research, Zinnov Analysis

Fresh engineer base is currently 668 thousand more than 60 per cent of


39/41

Fresh engineer base is currently 668 thousandmore than 60 per cent ofthis talent is based in the South

Delhi, NCR

Graduates (2008)668,000

73.5 K Name of State

Comp Electronics IS

Total Engineers

73.5 K 30K 30K 10.5K

Maharashtra147 K

93.5 K147 K

31.7K 58.2K 17.1K

93.5 K

19.8K 26.9K 12.6K

193.7 KKarnataka

100.2 K

193.7 K

100.2 K

19.3K 29.8K 10.5K

Tamil Naduo e:

Only AICTE approved engineering colleges are included for the study.

The size of the bubble indicates the amount of fresh talent pool passing out of engineering colleges

Fresh talent from other states: 60.1 K Source: Zinnov Research, NAAC, AICTE

. . .

T d lik g i g l d hi t l t d i i d t hi


40/41

Trends like growing leadership talent and increase in product ownership arepositioning India at the forefront of R&D offshoring capabilities

1

Stable for atleast 5-6 years Capability to influence decision

makers at HQ

management team in the U.S.

Disciplined ProcessesDisciplined ProcessesCatalyst for EmergingCatalyst for Emerging4 2

Decide on the optimalengagement and projectmodels

Define metrics to measure

Reinvest part of the savings tobuild prototypes for emergingmarkets

Help your CEO understand the Key Success Structured training program for

engineers Improve recruitment efficiency

market in India Build strong product

management function

ac ors

Product OwnershipProduct Ownership Strive to gain ownership on

product development Abilit to anal ze ortfolio to

gauge the benefits of producttransition to India

Increase touch point withcustomers


41/41

All the information contained in this report is obtained through discussions with industry experts,public and confidential information sources believed to be reliable. Zinnov makes no representationsor warranties re ardin the errors omissions or com leteness of an information contained herein

and shall have no liability for the same. The report is provided solely for informational purposes and

opinions must not be construed as advice recommendations or endorsements. The reader of thereport is advised to conduct an independent evaluation and form conclusions with respect to theinformation provided.

No part of this report prepared by Zinnov can be reproduced either on paper or electronic mediawithout permission in writing from Zinnov or the India Brand Equity Foundation (IBEF). Request for permission to reproduce any part of the report may be sent to [email protected].

Zinnov Contact

www.zinnov.com [email protected]

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Strategic Guide Indian Rd Centers-2008 (3)

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