deependra moitra determinants of success in global r&d lessons from india’s it industry
TRANSCRIPT
Deependra MoitraDeterminants of Success in Global R&D Lessons from India’s IT Industry
Overview
• Indian IT Industry – A Snapshot• A Case Study of Infosys Technologies• Synthesizing Learning• Determinants of Success in Global R&D• Discussions
Seeking to provide a 360º view of R&D Globalization
Indian IT Industry – A Snapshot
Infosys Technologies: Facts Sheet
Started in 1981 by 7 people with US $250 and a dream to build a globally respected software company of
the professionals, for the professionals, and without compromising on ethics
1999: Listed in NASDAQ (first Indian company)
Year 2004-2005
US $1.5+ Billion in Revenues
Market Cap of US $19 Billion
37000 Employees
Total Number of Clients 440
32 Development Centers and 32 Sales Offices Around the Globe
Has subsidiaries in China and Australia
2004: Set-up Infosys Consulting
Europe: StockholmBrusselsAmsterdamLondonFrankfurt
Paris Zurich
USA: Atlanta, Boston, Chicago, Dallas,
Detroit,Los Angeles,New York, Fremont, Seattle
Argentina
Japan, Australia, Hong Kong, China,Singapore, Sharjah,Mauritius
India: Bangalore, Chennai, Pune Bhubaneswar, Hyderabad, Mangalore, Mohali, MysoreDelhi, Mumbai
Canada
Global Company, Global Outreach
Infosys in China has a Global Hub …
Incorporated March 2004 as a 100%
subsidiary of Infosys, located in Shanghai
PuDong Software Park
Focus on
Offering an alternative offshoring
destination to global clients
Providing IT services to regional
operations of global clients
Providing IT services to large mainland
and North Asian corporations
Growth plans 180 (current) to 2000 (2006)
Plans to expand to other cities in China
in the next 24 months
To become a best-in-class provider of software solutions to Global 2000 companies by leveraging technology & talent base of China
V I S I O N
Infosys China Integrated Innovation Model Leverages Complementary
Strong Education System
Strong Education System
Strong Tech Skills
Language Capability
Strong Tech Skills
Language Capability
But there are gaps..
Project Management
Skills
Organizational Skills
Project Management
Skills
Organizational Skills
Quality and Process Maturity
Domain Skills
Quality and Process Maturity
Domain Skills
Organizational Drivers (1)
Clients Employees
Investors Society
Value, Delight, Long-term Relationship
“The softest pillow is a clear conscience.”
“Powered by intellect, driven by values.”“Business insights, integrated solutions, value multipliers.”
“Greater good should always triumph over individual good.”
Organizational Drivers (2)
“In God we trust; everyone else must come with data.” “The only time and context invariant
attributes of a successful organization: innovation, speed and excellence in
execution.”
“We should have humility, respect for the competition, and a healthy sense of paranoia;
or, we’ll vanish like dew drops on a sunny morning.”
Growth Stimulants
Democracy
Engineering Industry
TechnicalEducation
EnglishLanguage
Pre-1991
Import Tariffs,Tax Structures
ExportIncentives
Capital Markets
Telecom Revolution
Post-1991
EconomicProductivity
Y2K
TechnologyBoom
Indian Diaspora
Opportunity
Key Learning
• Long-term, value creating, relationship-based model versus transactions based model– Superior value through competency growth and
ownership• Global presence for a truly global delivery model to
deliver on time-to-market, lowered operational cost and reduced cost of quality
• Continuous improvement in quality, productivity and customer satisfaction parameters
• 2-D growth (scale and organizational maturity)• Source and manage best-in-class “raw material” for the
knowledge business• There are some undesired effects and imbalances, too.
Influencing Factors
Managerial
Cultural
CommunicationsLanguage
Technical
IP Management
ProjectManagement
HR Management
Infrastructure
Government /Ecology
Trust DistanceCentralization
VsDecentralization
Coordination and Alignment Mechanisms
Global R&D Progression Model
Tactical / O
pportunisticR
esource Utilization
Tactical R
esource LeverageP
rojects-based Approach
Strategic/Integrated
Com
petency-based and Innovation
Fully Leveraged S
ubsidiaryw
ith total NP
D and regional sales
responsibilitiesSkills
FlexibilityConfidence
PerformanceRelationship
Business ValuePartner
Ownership
Determinants of Success
Organizational• Clarity on R&D globalization intent• Managing organizational change• R&D globalization model• Work distribution model• Integration strategy• Executive commitment
Ecosystem• Availability of resource pool (scale and quality)• Complementarity (venture capital, outsourcing, MNC, R&D Labs)• Cluster effect and “Spiraling” effect• Demand creation and opportunities
Policy and Incentives• Government’s facilitative role• Tax incentives• Country attractiveness, economic policies, and educational set-up• Procedural simplicity • Minimize geo-political risks
Other• Coordination and alignment mechanisms• Organizational maturity• Value-based management• IP regime
Managing Global R&D is a learned competency
99 01 02 03 04
$ 1.06 b
Infosys’ growth 1991: $ 2m
Thank YouQuestions & Discussions
Deependra [email protected]
www.moitra.com