ravindra nuguri - ecco-offset.eu...indian market focus ($1.8b) • hardware & systems...
TRANSCRIPT
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 1
Ravindra Nuguri Vice President Engineering - Aerospace & Defense, Automotive June 20th 2013
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 2
1. HCL overview • Overview • Partnering Culture
2. Experience in Generating Offset Credits
• Civil Offset • Defense Offset • Sample Offset Programmes Delivered from India
3. Do’s and Don’ts for Managing Offset
• Engagement Models for Offset
Proposed Agenda (25’)
HCL Overview
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 4
HCL Enterprise
Fastest growing Indian IT & Engg services
provider in India Won the prestigious Asia-Pacific Enterprise
Leadership Awards (APELA) 2013 for Corporate Social Responsibility (CSR).
The only Indian Company on the Honor Roll of the UN-WEP (Women Empowerment) Leadership Awards 2013
Ranked first amongst the major Indian IT & Engineering service providers in Customer & Employee satisfaction
HCL Technologies highlights
$6.3
31 85000 B I L L I O N
C O U N T R I E S P E O P L E
HCL Infosystems
Indian Market Focus ($1.8b)
• Hardware & Systems Integration • Networking Solutions • Homeland Security • ICT Distribution • Education & Learning
HCL Technologies
Global Market Focus ($4.5b)
• Product Engineering and R&D Services • Enterprise & Custom Applications • Enterprise Transformation Services • Infrastructure Management • BPO Services
90000 P E O P L E
Consolidated Revenues Growth
in U
SD M
n
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 5
Recognizing the business value of EFCS
Celebrating employees A film that captures the essence of Employees First - viewed 2.25 mn times within 2 months of going viral
AWARDS & RECOGNITIONS: EFCS book rated as a best seller in UK, France and India
www.youtube.com/hcltechtube
ENDORSED by Thought Leaders like Ram Charan, Gary Hamel, Tom Peters and Late C.K Prahlad
Nurturing Employees Through A Leadership Model
100000 + in market, translated in 7 languages
Exclusive report on EFCS recognizes that this philosophy empowers HCL’s frontline employees to make decisions and take actions for the benefit of customers
Analysts Gartner and Forrester publish reports: Business value of HCL
August 22, 2011 Case Study: HCL Technologies Puts Employees First, Customers Second Empowering high-performance teams re-ignites growth and prosperity
Exclusive case study around EFCS being published by Frost & Sullivan as an “Example for Business Model Transformation”.
Business Model Transformation: Empowering Employees to focus on the Customer
The report discusses how HCL remains devoted to building a company its employees can be proud of and an organization with whom clients want to be involved with.
Won two prestigious management book prizes in France – ‘The Olivier Lecerf Award’ and ‘The Foundation Manpower - HEC prize’
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 6
HCL Today
Balanced Portfolio of Services across Industries, Service Lines and Geographies
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HCL’s Global Operations across 31 countries
Mexico City
Chicago
Sunnyvale
Stamford
Columbia Irvine
Germany France
U.K.
Sweden
Switzerland
Belgium Netherlands
Hong Kong
Japan
Melbourne
Sydney Auckland
Wellington
New Jersey
Field Operations Offshore & Near shore Development Centers
Corporate Headquarters
India Los Angeles
Fairfax
Dallas
Canada
Ireland
Singapore
Malaysia
Italy
Utah
Perth
Poland
London
Gurgaon Delhi
Chennai
Bangalore
Noida
Kolkata
Mumbai
Brazil South Africa
Hyderabad Pune
ITAR center
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• 100+ employees working at HCL Technologies France • 25 large customers acquired in 4 years, most of them are CAC
40 or SBF 120 listed companies • Finance Services • Manufacturing, Aerospace & Defence • Life Sciences • Retail & CPG
• Ongoing projects or live projects in :
• Infrastructure outsourcing • Engineering services and maintenance • BPO • SAP • Custom developments
• 2 strategic partnerships with :
• GFI Informatique – IT Applications • Eurogiciel – SW Engineering
HCL Technologies in France
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Partnering Culture
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 10
Engineering and R&D Services Ae
rosp
ace
& D
efen
se
Auto
mot
ive
Med
ical
Dev
ices
Soft
war
e
Onl
ine
Indu
stria
l
Sem
icon
duct
or
Serv
er &
Sto
rage
Tele
com
& W
irele
ss
Cons
umer
Ele
ctro
nics
Software / Embedded SW
Mechanical
Product sTesting, Prototyping, Certification & LVM
Manufacturing IT (PLM, MES)
• 18,500+ Engineers • 300+ Global Marquee Customers • $1bn Revenues • 40+ ODCs and 80+ Customer specific labs • 1250 Patents filed on behalf of our customers
INDUSTRY vs SERVICE LINES
THE ORGANIZATION CLIENTELE
Million+ vehicles with HCL designed products
7 of the top 10 A&D companies
3 top 5 consumer electronic companies
7 of the top 10 Medical Device Companies
4 of the top 6 Storage Companies
5 of the top 10 Semiconductor companies
7 of the top 10 Telecom Companies
15% market share of Outsourced Engineering and R&D services spend from India
HCL ERS Rated as the # 1 in ESO
by Zinnov
Leadership Position in the Industry
Hardware / Electronics
Experience in Generating Offset Credits
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HCL Understands Indian Offset Landscape
The Indian Defence Procurement Organization have the following bodies - 1. Defence Acquisition Council (DAC) 2. Defence Procurement Board (DPB) 3. Defence R&D Board.
HCL is fully familiar with Indian Offset Landscape in terms of Organization, People, Processes and Policies
• Strong connections within • DOMW for Defense Offsets • STC for Commercial Offsets
• Thorough Understanding of civil Offset Documentation Process & Approval Process/familiarity with DO
DOMW
Defence PSUs
ISRO
DRDO Labs
STC
Organization for Offset
India Delivery Center
India Delivery Team (Rajeev Dutta, GM)
India Sales Team (Rangarajan, DGM)
Project Support & Management (Team for offset realization)
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OEM-Tier1 Contract (Intention to outsource to meet offset obligations to be mentioned in MSA)
Tier 1s to communicate Information on the nature of work packages to OEM
OEMs to obtain Approval Number from STC on submitting the above information
OEM to pass on Approval No to Tier1 . OEM/Tier1 to Issue RFP/SOW to HCL with Offset intent and Approval No
HCL to provide necessary offset documentation to Tier1/ OEM on a periodic basis
Tier1/HCL to jointly review and approve offset document ation and covering letter
OEM to submit the documen tation to STI
HCL to support STC during the audit and approval stages
Civil Offset Management Process at HCL
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1 Correlation between PO, Invoice, Softex and FIRC
HCL expertise in handling offset documentation
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2 3 STPI approved Softex FIRC acknowledged by FIRC
HCL expertise in handling offset documentation
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Example of HCL’s Contribution to Civil Offset (Boeing 787)
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Tier1 Player
•Software development/V&V- Remote Power Distribution System •Average of 30 full-time engineers •Peak of over 40 •Approximately $5M offset credit delivered •Duration of 5 years
Tier1 Player
•Software development/V&V - APU Controller •Average of 70 full-time engineers •Peak of over 110 •More than $10M offset credit delivered •Duration of 5 years
Snapshot - Sample Offset projects for B787 handled by HCL
Aerospace OEM
•Software Application Development –Flight Test Support System •Average of 350 full-time engineers •Peak of over 400 •More than $20M offset credit delivered •Duration of 4 years
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 18
Be a Common Development Partner across Tier-1s
Aerospace Experience & Airworthy Work products
NRE Cost Savings
Help meet Commercial Obligation
Willingness to put skin in the Game
• Servicing 11 Sub Tier partners & Boeing • Providing development, verification, certification
and integration support for both airborne & ground systems in software, electronics and test rigs design
• Worked on 20+ systems on the aircraft • Built systems to test, evaluate & certify avionics & the aircraft • Successfully faced multiple Stages of Involvement (SOI) audits • ~40% of the Software is either developed / verified by HCL
• Effective offshoring (80%)
• Provided documentation to OEM and Tier 1 to claim over USD 50 million of offset credit with STC–first for any Indian service provider.
• Demonstrated willingness by executing a large portion of engineering effort with RC
• Risk-Reward Model
Global Delivery
Effective Offshoring
Ability to Scale
Mature Governance
Summary of contributions (Boeing 787)
HCL Services Spread
Offset Credits
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 19
Jointly develop Scope & Value of
offset project and
Contract
Guidance & Feedback for Amendment
Project approved
by Partners
Scope and Value approved by TOEC, CNC & Acquisition
Wing
Submit Offset report to DOMW
Report Approved
Feedback
Record Keeping
DO
MW
/ Ac
quis
ition
W
ing
Indi
an
Offs
et
Part
ner
OEM
/Tie
r1
Grant Offset report
Yes
No
Submit Offset Project and
Contract
Independent Project
Identification
Yes
No
No
Yes
Planning Scope & Value Evaluation Offset Management
Defence Offset Credit Process
Offs
et O
blig
atio
n C
omm
itmen
t / IO
P M
oU
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 20
Planning
Scope and Value Approval Valuation Considerations
All projects will meet driving DPP guidelines and align with Indian MoD objectives
OEM and HCL will jointly develop project scope and value
Offset submission forms include: Project statement of work Valuation summary Project Valuation
Agreement form
Obtain agreement on value and scope of project MoD OEM/Tier1-2 implementer with
Indian offset partners
DOMW Grant approval to proceed with project
Improvement of In-country Infrastructure Facilities Job creation Personnel investment and development Availability of technology/new capabilities
Future Business Potential Decreased time to market Enhanced market position
Company Capability Improvement Risk mitigation Improved processes
Project Recipient Company A
Purchase Order Value
Direct Purchase Value of PO $
Total Purchase Order Value $
Foreign Direct Investment
Replacement, Development or Acquisition Value
$
Total Intellectual Property Value $
Benefits to Customer
Banking Offset possibility $
Future Business Potential $
In-Country Infrastructure $
Subtotal Benefits to Customer $
Total Value of Offset Project $
+
+
=
Defence Offset approval process
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 21
Six Monthly Report format
Do’s and Don’ts
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Offset Management - Do’s & Don’ts
Offset Program Office to be set up within the IOP premises with the following responsibilities
•Establish and institutionalize best practices and internal processes for efficient offset execution •Information collation - financials, contracts, work executed •Coordination with clients and Indian authorities involved •Track valuations to closure with relevant govt. depts
PO to be issued from foreign company to Indian Company ; not to foreign branches of the Indian Company; PO to mention Approval Number obtained from STC e.g. : PO issue on HCL Technologies India and not on HCL France , HCL America etc
Offset planning in advance •Scope definition •Year wise offset obligation definition •Detailed Contract Formulation
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 24
Offset Management - Do’s & Don’ts
Local knowledge •Deep expertise in MoD/Civil Aviation policies •Expertise in forms , procedures and various regulatory documentation
Create a repository of Best \ Practices and learning from Current offset projects.
Build relationships with Key Govt. Stakeholders- STC, DOMW, STPI et al
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 25
3rd party outsourcing Virtual JV Traditional
JV Assisted Captive
Pure Captive
Compliance
Offset Credit
Cash Flow
Talent Management
Control
Cost Reduction
Hybrid 2 Floor Model
Execution
Benefits to CUSTOMER
HCL can support Offset Credits with Various Engagement Models …
Transition/ Set up
Low
High
High
High
High
High
High
High
Medium
High
High
High
High
High
High
High
High
High
High
Medium
Medium
High
High
Low
Medium
Low
Medium
Medium
Medium
Medium
Medium
High
Medium
Medium
Medium
High
Medium
Medium
Medium
High
High
Low
Low
Low
Medium
Medium
High
High
Structured JV
High
High
High
Medium
Medium
High
High
Low
Asset on Books High High High
Lead Time
Flexibility High
Medium
Medium
High
Low
Medium
Medium
Medium High
Medium
High
Low
Low
High
Not Applicable
Monetization Low Low High High Low Low
HCL experience Various State Street DB, BT, HP Large Global Investment
Bank
Global Custodian NA
High
Medium
High
High
Various
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 26
HCL Contacts
David Zarka Sales Director, Manufacturing HCL Technologies France 13-15 Rue Taitbout 75009 Paris Mob: +33 6 11 84 29 48 Email: [email protected]
Ravindra Nuguri Vice President, Engineering Aerospace, Defense & Automotive HCL Technologies Ltd Surya Sapphire, Electronics City Phase 1 Bangalore -560100 Mob: +91 9845 53 9232 Email: [email protected]
Nicolas Mauget Sales Director, Engineering and R&D Services HCL Technologies France 13-15 Rue Taitbout 75009 Paris Mob: +33 6 30 50 10 51 Email: [email protected]
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 27
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 28
We strive to maintain the highest standards of ethics and integrity in our professional and personal lives. We also strive to demonstrate this trustworthiness in all our dealings, as we believe that everyone we deal with -- be it clients, partners or colleagues -- are equally committed to mutual success and behave accordingly.
We focus on creating value for our customers through innovative ways of applying technology, which generates growth and competitive advantage for them. Our promise of value does not restrict itself to business gains; we also desire the creation of sustainable community value through socially responsible business models that give back to local communities.
We operate with a leadership model that in many ways inverts the pyramid of organizational hierarchy, recognizing that the true role of management is to enable, enthuse and encourage front-line employees working in the “value zone,” the place where they interact with our customers. The responsibility for change and value creation is transferred from senior management to these employees. Because of these employees’ key role in value creation, our managers are as accountable to them as they are to their bosses.
TRUST TRANSPARENCY
& FLEXIBILITY
VALUE CENTRICITY
EMPLOYEES
FIRST
We believe that innovation is not an ivory-tower phenomenon. At HCL, it occurs in real-time, in the “value zone,” driven by employees working directly with customers to create solutions to customer problems. When you combine the employee empowerment of the “Employees First” philosophy and HCL’s longstanding entrepreneurial culture, the result is 85,000 HCLites who are able to create maximum value for our customers, as well as reach their own true potential.
IDEAPRENEURSHIP
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Indian Defence Acquisition Process Request for Proposal (RFP)
Technical Evaluation Committee (TEC)
Field Evaluations (Trials)
Staff Evaluation
Technical Oversight Committee (TOC)
Contract Negotiation Committee (CNC)
Competent Financial Authority (CFA)
Signing of Main & Offset Contracts
Verification of the proposal by CNC. L1 can amend
commercial offer
Review of main technical offer
Technical Proposal
Commercial Proposal
Determine
L1
Technical Offset Offer
Commercial Offset Offer
Evaluation Committee
Examine compliance of mandatory requirements –
qualification for opening Commercial Offer
Response Offset Proposal Response Main Contract
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Offset Banking
Offset banking implies generation and accumulation of offset credits prior to the award of the main contract.
Bankable offsets can be created either by generating surplus credits through programmes or by undertaking fresh offset programmes prior permission of the host country
Banking is allowed up to seven years from the date of acceptance by DOMW
Pre-approved banked offset credits will be considered for discharge of offset obligations subject to a maximum of 50 percent of the total offset obligation under each procurement contract
Banked offset credits will be transferable between the main vendor and his Tier-1 subvendors within the same procurement contract
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 31
Sample Offset projects for B787 handled by HCL -1
Customer: U.S Aerospace Tier1 Company Aircraft: B787 Scope and Activities:
Requirements Design and Coding Verification & Validation
Number of Engineers and Respective Seniority: (
Average of 30 full-time engineers A peak of over 40
Project Characteristics:
6 CSCI Development ( 5 Hosted Application and 1 Federated Application)
Co-Development & ownership of V&V SPI of 0.96 (2008 – 2011) despite 787-8 schedule demand Enhanced V&V Platform ( Simulated Test Environment Creation) Ownership of SPIF Lab (24 x 7) Enhanced CR burn for 787-8 various block point releases Cleared SOI2, SOI3, SOI4 ( 7 Audits) & Reviews (PDR, CDR , TRR ) Distributed Team (Remote Connectivity of Common tools
between Client & HCL.)
Deliverables: All Software Development and Verification artifacts (i.e. Planning Documents, Standards, Requirements, Reviews, Code, Test Station development and Tool Qualifications, Results, etc.)
Work Period: Apr 2005 – Jan 2011
Expertise and Software:
CM SYNERGY, DOORS, Artisan Real Time Studio, Teleology Rule Checker.
AFDX CTG. BITE Engine Tool(BET), PPDN / RPDN Tool. PDSD Tool, Pathfinder, Test RT,Flex IO, CDN-Verify, BITE-
Verify. P300,Thomahawk Test Stand, SPIF.
Duration: Approximately 5.5 years
Level of responsibility: Tier-2
Level of performance
Software Requirements Coding Software verification
Remote Power Distribution System
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 32
Sample Offset projects for B787 handled by HCL -2
Customer: U.S Aerospace OEM Aircraft: B787 Scope:
Rehosting and Re engineering of legacy application
Deliverables: All Software Development and Verification artifacts (i.e. Planning Documents, Standards, Requirements, Reviews)
Number of Engineers and Respective Seniority: Average of 350 full-time engineers A peak of over 400
Project Characteristics:
Reengineered more than 230 application modules Java - 4 Million SLOC, C - ~260 KLOC, DB – 719 Tables 3000 Screens, 700 Transactions, 300 Reports Migration of 15Gb Data from IDMS to Oracle 30,000 pages Technical Specification Documents Migration of all existing ‘binary’ Data stores to HDF5 data
stores Extensive use of COTS tools & Open source APIs Extensive Batch Processing in RIP & DRQ
Duration: Approx 4 years Expertise:
Re-host phase Re-engineer entire Flight Test System from IBM
Mainframe to a Distributed Open System Architecture (J2EE) including Test Support Systems & Business Support Applications
Re-engineer Final Data system from Fortran to ANSI C
Data migration from IDMS to Oracle Database Enhance Phase
Enhance FTCS to meet functional testing needs of 787
Support cycle time reduction in Flight test schedules
Software:
MatLab/Simulink Real Time Workshop GNU compiler Code Composer DOORS
Level of responsibility: Tier-1
Level of performance:
Coding Software verification Tool Rehosting
Flight Test Support System
Copyright © 2013 HCL Technologies Limited | www.hcltech.com 33
Sample Offset projects for B787 handled by HCL -3
Customer: U.S Aerospace Tier1 Company Aircraft: B787 Scope and Activities performed:
Requirements, Update of Rhapsody UML requirements model Design Coding ( Automatic and manual) Verification & Validation
Requirement , Design and Code Reviews Requirement based testing (HSIT), Structural coverage
analysis
Deliverables: All Software Development and Verification artifacts (i.e. Planning Documents, Standards, Requirements, Reviews, Code, Test Station development and Tool Qualifications, Results, etc.)
Number of Engineers and Respective Seniority: (Seniority - Junior Level: from 1 to 3 years / Intermediate Level: from 4 to 10 years / Senior Level: over 10 years)
Average of 70 full-time engineers A peak of over 113
Project Characteristics:
Successful completion of all the SOI audits without any major findings
The first of the products in Boeing 787 from HS, certified by FAA
Work Period: Jul 2005 – Mar’2011
Expertise:
DO-178B Embedded development
Software:
DOORS, Rhapsody, Diab, PC Lint, Vector Cast MPC5554 , Ashling Pathfinder, XDS510 Class
Emulators, AGE 70077ATE,ITA System Simulator, CAN GUI, Testlink, Ethernet
Manager
Level of responsibility: Tier-2 Level of performance:
Requirements Design Software development Software verification
APU Controller