A recent rating — for global R&D service providers across India, China and Eastern Europe — by Zinnov Management Consulting identifies Wipro, TCS and HCL as market leaders in the overall rating based on components like financial strength and business models, innovation & expertise, people strength and operations.
The rating has also highlighted the impact of recession on the R&D service providers community across all key levers — like contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk — which did result in many of them having to reassess and redefine their strategies.
Result of this reassessment has seen core mid-market service providers like Tata Elxsi, Tech Mahindra, Aricent, MindTree, Symphony, Sonata, Global Logic, Polaris and Aditi, moving strongly towards the top-pack and establishing themselves as leaders in specific industry verticals, said the rating.
Pari Natarajan, CEO, Zinnov Management Consulting said, the global economy has witnessed a major reset and is currently observing green shoots of recovery, with Germany, India and China among others showing signs of improvement. “This tectonic shift in the economy has led to numerous changes in the current market dynamics, but one thing that can be safely assumed is the continued growth of interlinkages between global businesses and stronger relationships between service providers and MNCs would only continue to grow in times to come.’’
Vertical specific rankings were also under taken to understand the capabilities of the various service providers in providing turnkey product engineering services in verticals like aerospace & defense, automotive, consumer electronics, healthcare, semi conductors, telecom, & software.
The rating study also found that, R&D offshoring to India, China, Russia and Central & Eastern Europe is expected to grow at 6-7% with India and China continuing to constitute close 90% of the overall market. Though large firms have neither dramatically cut down nor increased their R&D spends. Hence, R&D offshoring to India, China, Russia and CEE is expected to remain flat.
Agencies
Showing posts with label Pari Natarajan. Show all posts
Showing posts with label Pari Natarajan. Show all posts
Thursday, September 17, 2009
Monday, November 3, 2008
'Indian R&D centers need to pull up'
Current economic downturn is an ideal opportunity for R&D subsidiaries in India to showcase their value proposition says a new study .
Zinnov Management Consulting, a leading management consulting firm in India, today asserted that the current economic downturn is an ideal opportunity for R&D subsidiaries in India to showcase their value proposition of "Innovation at lower cost" and help their parent companies tide over these tough times.
According to Zinnov, Indian subsidiaries should proactively adopt various measures such as an effective cost cutting strategy without compromising on innovation, infuse realism in their employees and correct some of those desperate measures that centers had taken in the past few years to control attrition and scale faster.
Create a myth buster presentation on India centers (to dispel myths like cost escalation, lower productivity, lack of innovation), sell aggressively to their parent companies, attract high quality talent from top engineering institutes that once preferred Financial services, attract senior talent from overseas, increase awareness among engineers on the economic downturn and its overall implications are also some of the things that they would have to do. Another key initiative should be increasing interaction with key global stakeholders in the parent company to keep India center in the spotlight.
Pari Natarajan, CEO, Zinnov Management Consulting, said, "This is the time for leadership and not just Management. India centers should project a stronger India Center image by articulating value to their Global stakeholders and get high value work transitioned to India. The current crisis can be diffused if India centers continue to deliver innovation at lower cost. Our recommendations are based on our internal analysis and discussions with the various industry stalwarts over a period of time."
Zinnov also deliberated that as Global companies today are looking at Eastern Europe and China as alternative off shoring locations, there might not be an upsurge (similar to the 2002-2005 period post the dotcom bust) in the number of projects transitioned to India. Companies doing more than 20 percent R&D work in India may also now look at expanding in other locations and a probable cut by the Global companies in their R&D spend may hurt the aspect of innovation. However, these factors should not act as dampeners and India centers can continue to fulfill the promising growth story by driving variety of initiatives across the value chain.
Zinnov Management Consulting, a leading management consulting firm in India, today asserted that the current economic downturn is an ideal opportunity for R&D subsidiaries in India to showcase their value proposition of "Innovation at lower cost" and help their parent companies tide over these tough times.
According to Zinnov, Indian subsidiaries should proactively adopt various measures such as an effective cost cutting strategy without compromising on innovation, infuse realism in their employees and correct some of those desperate measures that centers had taken in the past few years to control attrition and scale faster.
Create a myth buster presentation on India centers (to dispel myths like cost escalation, lower productivity, lack of innovation), sell aggressively to their parent companies, attract high quality talent from top engineering institutes that once preferred Financial services, attract senior talent from overseas, increase awareness among engineers on the economic downturn and its overall implications are also some of the things that they would have to do. Another key initiative should be increasing interaction with key global stakeholders in the parent company to keep India center in the spotlight.
Pari Natarajan, CEO, Zinnov Management Consulting, said, "This is the time for leadership and not just Management. India centers should project a stronger India Center image by articulating value to their Global stakeholders and get high value work transitioned to India. The current crisis can be diffused if India centers continue to deliver innovation at lower cost. Our recommendations are based on our internal analysis and discussions with the various industry stalwarts over a period of time."
Zinnov also deliberated that as Global companies today are looking at Eastern Europe and China as alternative off shoring locations, there might not be an upsurge (similar to the 2002-2005 period post the dotcom bust) in the number of projects transitioned to India. Companies doing more than 20 percent R&D work in India may also now look at expanding in other locations and a probable cut by the Global companies in their R&D spend may hurt the aspect of innovation. However, these factors should not act as dampeners and India centers can continue to fulfill the promising growth story by driving variety of initiatives across the value chain.
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