Deependra Moitra

1
Determinants of Success in Global RD Lessons
from Indias IT Industry

• Deependra Moitra

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Overview

• Indian IT Industry A Snapshot
• A Case Study of Infosys Technologies
• Synthesizing Learning
• Determinants of Success in Global RD
• Discussions
• Seeking to provide a 360º view of RD
  Globalization

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Indian IT Industry A Snapshot
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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

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Global Company, Global Outreach
Europe Stockholm Brussels Amsterdam London Fr
ankfurt Paris Zurich
Canada
Japan, Australia, Hong Kong, China, Singapore,
Sharjah, Mauritius
USA Atlanta, Boston, Chicago, Dallas,
Detroit, Los Angeles, New York, Fremont,
Seattle Argentina
India Bangalore, Chennai, Pune Bhubaneswar,
Hyderabad, Mangalore, Mohali, Mysore Delhi,
Mumbai
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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

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Infosys China Integrated Innovation Model
Leverages Complementary
But there are gaps..

• Quality and Process Maturity
• Domain Skills

• Project Management Skills
• Organizational Skills

• Strong Tech Skills
• Language Capability

• Strong Education System

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Organizational Drivers (1)
Business insights, integrated solutions, value
multipliers.
Powered by intellect, driven by values.
The softest pillow is a clear conscience.
Greater good should always triumph over
individual good.
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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,
well vanish like dew drops on a sunny morning.
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Growth Stimulants
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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.

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Influencing Factors
Managerial
Technical
HR Management
Cultural
IP Management
Infrastructure
Communications Language
Project Management
Government / Ecology
Trust
Distance
Centralization Vs Decentralization
Coordination and Alignment Mechanisms
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Global RD Progression Model
Skills Flexibility
Confidence Performance
Relationship Business Value
Partner Ownership
Fully Leveraged Subsidiary with total NPD and
regional sales responsibilities
Tactical / Opportunistic Resource Utilization
Tactical Resource Leverage Projects-based Approach
Strategic/Integrated Competency-based and
Innovation
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Determinants of Success

• Organizational
• Clarity on RD globalization intent
• Managing organizational change
• RD globalization model
• Work distribution model
• Integration strategy
• Executive commitment

• Ecosystem
• Availability of resource pool (scale and
  quality)
• Complementarity (venture capital, outsourcing,
  MNC, RD Labs)
• Cluster effect and Spiraling effect
• Demand creation and opportunities

• Policy and Incentives
• Governments 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 RD is a learned competency
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Thank You Questions Discussions Deependra
Moitra deependra_at_moitra.com www.moitra.com
1.06 b
Infosys growth 1991 2m
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