““““My WorldMy WorldMy WorldMy World””””
AgendaAgendaAgendaAgenda
Offshore R&D
Offshore in India
Effective management of offshore in India
Offshore Is EverywhereOffshore Is EverywhereOffshore Is EverywhereOffshore Is Everywhere
ServicesServices
Hi techHi tech
manufacturing manufacturing Manufacturing Manufacturing
textiles, toys, cars, ….
R&DR&D
call centers, accountants, MRI,presentations…
R&D Offshore AdvantagesR&D Offshore AdvantagesR&D Offshore AdvantagesR&D Offshore Advantages
� Lower cost – the cost in India is about 40% from the cost in the USA.
� Higher availability of low level engineers
� Close to new & large markets
� High growth in technology culture (more PC’s, IT students, internet, infrastructure etc.)
Some Facts About R&D OffshoreSome Facts About R&D OffshoreSome Facts About R&D OffshoreSome Facts About R&D Offshore
Started in the 80th (TI, Cadence)
The leader – India (12.7 B$ per year). About 700,000 employees (next is china)
Outsourcing and turn key projects
A few international research centers (Microsoft, Cisco, Intel and others)
Most of the large technology firms have branches in India and/or China.
Most of them continue to increase the number of their employees at home and at LCG
They had problems but improved their management over the years
India India India India ---- Before the Revolution (90Before the Revolution (90Before the Revolution (90Before the Revolution (90’’’’s)s)s)s)
Barely functioning services
Government denied business requests
Low wages
Success=going overseas
Best educated Indians left India
Job for life
Women depend on family/husband for money
60%Of college graduates found jobs
The High Tech in India TodayThe High Tech in India TodayThe High Tech in India TodayThe High Tech in India Today
3 major companies – Tata, Infosys, Wipro (above 100000 employees)
Many “small” companies (500 – 3000 employees)
800 R&D centers
300,000 new graduates each year, just ¼ are qualified to work
Shortage of people with experience, only 100 computer science PhDs, only 7000 patents per year
Turnover of about 15 to 30 percents
Wages increase is about 15% in the last years. Wages triple from 0 to 3 years experience
Good quality (CMM, CMMI5)
VC’s are starting to invest (475M$ in 2009)
Examples for Offshore Activities (India)Examples for Offshore Activities (India)Examples for Offshore Activities (India)Examples for Offshore Activities (India)
Oracle8500 developers
Microsoft3000 developers
GE 4300 developers
AMD 3B$ project Chip design
SAPJava group
Intel 1B$ project Chip design
CiscoHalf of R&D
Airbuspart of the wing
for new plain
Ness/SelaOutsourcing
Firms
If You Want to Be Competitive If You Want to Be Competitive If You Want to Be Competitive If You Want to Be Competitive
Innovation
Much shorter time to market
Use effectively the LCG groups
Things That Will Make The Difference Things That Will Make The Difference Things That Will Make The Difference Things That Will Make The Difference
MonitoringDevelopment
processesRecruitment
CommunicationManagers
Cultural daily issues
Management from Israel
GeertGeertGeertGeert HofstedeHofstedeHofstedeHofstede™™™™ Cultural DimensionsCultural DimensionsCultural DimensionsCultural Dimensions
PDI – Power distribution in the organization
IDV – Individualism (Vs. collectivism)
UAI - Uncertainty Avoidance
0
10
20
30
40
50
60
70
80
90
PDI IDV UAI
USA
ISRAEL
INDIA
Management Management Management Management Indian managers see employees as “servants”
Very slow in decision making
Most foreign firms prefer returned Indians from the west as managers
Define management procedures (similar to Wintegrawith some adjustments to the Indian culture)
Explain your values (people, motivation …)
Train your managers
Be formal and acknowledge hierarchy
Management from IsraelManagement from IsraelManagement from IsraelManagement from IsraelIndians is willing to take higher risks with someone they trust
Respect them
Let them understand the whole picture
Let them feel as part of Wintegra
Remember their holidays, birthdays ..
The Indians do not express their disagreements (“lets discuss it later …)
Give them a presentation about Israel
MonitoringMonitoringMonitoringMonitoringVery important
Not naturally done, they can live with contradictions
Fast monitoring
Metrics - define many, give them to fill in (time, quality, investments, work in process …)
They need a PMO
Recruitment Recruitment Recruitment Recruitment � CV – out
� Universities - out
Friend brings friend
Formal test (professional + personality)
Give your employees reasons to stay
CommunicationCommunicationCommunicationCommunication
The key to success
Daily - written communication (chats, Email)
Weekly – teleconference
Monthly – Video conference
Quarterly – Meeting face to face
Establish communication at all levels / positions
Development processDevelopment processDevelopment processDevelopment processUsually, they don’t have their own process
Very disciplined
Looking for new methods (first at Google survey of “design pattern”)
Quality – after price
Excellent documentation
Need to be trained
Daily issuesDaily issuesDaily issuesDaily issues
Willing to work hard
Punctuality will be an issue (delay in meetings)
Dress conservatively
Business card is important
Indian rarely turn off their cell phones
Indian likes to talk about family and home
Not Everything Can and Should Be Not Everything Can and Should Be Not Everything Can and Should Be Not Everything Can and Should Be OffshoredOffshoredOffshoredOffshored
Critical
Fast
Complicates
Core knowledge
SummarySummarySummarySummary
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