Dvir Zohar
     054 – 5555668
dvir@simplesolutions.co.il
“My World”
    World”
Agenda
 Offshore R&D
 Offshore in India
 Effective management of offshore in India
Offshore Is Everywhere
     Manufacturing                        Hi tech
                                       manufactur...
R&D Offshore Advantages
  Lower cost – the cost in India is about 40% from the cost in the USA.
  Higher availability of l...
Some Facts About R&D Offshore
 Started in the 80th (TI, Cadence)
 The leader – India (12.7 B$ per year). About 700,000
 em...
(90’
India - Before the Revolution (90’s)
  Barely functioning services
  Government denied business requests
  Low wages
...
The High Tech in India Today
3 major companies – Tata, Infosys, Wipro
(above 100000 employees)
Many “small” companies (500...
Examples for Offshore Activities (India)

    Cisco           Oracle            Microsoft
  Half of R&D   8500 developers ...
If You Want to Be Competitive
 Innovation

 Much shorter time to market

 Use effectively the LCG groups
Things That Will Make The Difference

                Management from
    Managers                       Communication
   ...
Hofstede™
Geert Hofstede™ Cultural Dimensions
 PDI – Power distribution in the organization
 IDV – Individualism (Vs. coll...
Management
 Indian managers see employees as “servants”
 Very slow in decision making
 Most foreign firms prefer returned ...
Management from Israel
 Indians is willing to take higher risks with someone they trust
 Respect them
 Let them understand...
Monitoring
 Very important
 Not naturally done, they can live with contradictions
 Fast monitoring
 Metrics - define many,...
Recruitment
                              CV – out
                              Universities - out




     Friend bring...
Communication

The key to success
Daily - written communication
(chats, Email)
Weekly – teleconference
Monthly – Video con...
Development process
 Usually, they don’t have their own process
 Very disciplined
 Looking for new methods (first at Googl...
Daily issues
 Willing to work hard
 Punctuality will be an issue (delay in meetings)
 Dress conservatively
 Business card ...
Not Everything Can and Should Be Offshored




                         Critical
                          Fast
          ...
Summary
Effective R&D @ India
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Effective R&D @ India

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How to work effectively with off shore R&D at India

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Effective R&D @ India

  1. 1. Dvir Zohar 054 – 5555668 dvir@simplesolutions.co.il
  2. 2. “My World” World”
  3. 3. Agenda Offshore R&D Offshore in India Effective management of offshore in India
  4. 4. Offshore Is Everywhere Manufacturing Hi tech manufacturing textiles, toys, Services cars, …. call centers, accountants, MRI, presentations… R&D
  5. 5. R&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.)
  6. 6. Some 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
  7. 7. (90’ India - Before the Revolution (90’s) Barely functioning services Government denied business requests Low wages Of college graduates Success=going overseas 60% found jobs Best educated Indians left India Job for life Women depend on family/husband for money
  8. 8. The 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)
  9. 9. Examples for Offshore Activities (India) Cisco Oracle Microsoft Half of R&D 8500 developers 3000 developers AMD Intel GE 3B$ project 1B$ project Chip design 4300 developers Chip design Airbus Ness/Sela SAP Java group part of the wing Outsourcing for new plain Firms
  10. 10. If You Want to Be Competitive Innovation Much shorter time to market Use effectively the LCG groups
  11. 11. Things That Will Make The Difference Management from Managers Communication Israel Development Monitoring Recruitment processes Cultural daily issues
  12. 12. Hofstede™ Geert Hofstede™ Cultural Dimensions PDI – Power distribution in the organization IDV – Individualism (Vs. collectivism) UAI - Uncertainty Avoidance 90 80 70 60 50 USA 40 ISRAEL 30 INDIA 20 10 0 PDI IDV UAI
  13. 13. 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 Wintegra with some adjustments to the Indian culture) Explain your values (people, motivation …) Train your managers Be formal and acknowledge hierarchy
  14. 14. Management from Israel Indians 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
  15. 15. Monitoring Very 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
  16. 16. Recruitment CV – out Universities - out  Friend brings friend  Formal test (professional + personality)  Give your employees reasons to stay
  17. 17. Communication 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
  18. 18. Development process Usually, 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
  19. 19. Daily 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
  20. 20. Not Everything Can and Should Be Offshored Critical Fast Complicates Core knowledge
  21. 21. Summary

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