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    Dvir Zohar

    054 [email protected]

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    My WorldMy WorldMy WorldMy World

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    AgendaAgendaAgendaAgendaOffshore R&D

    Offshore in India

    Effective management of offshore in India

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    Offshore Is EverywhereOffshore Is EverywhereOffshore Is EverywhereOffshore Is Everywhere

    ServicesServices

    Hi techHi tech

    manufacturingmanufacturingManufacturingManufacturing

    textiles, toys,

    cars, .

    R&DR&D

    call centers,accountants, MRI,presentations

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    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 PCs, IT students, internet,

    infrastructure etc.)

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    Some Facts About R&D OffshoreSome Facts About R&D OffshoreSome Facts About R&D OffshoreSome Facts About R&D OffshoreStarted 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 inIndia and/or China.

    Most of them continue to increase the number of theiremployees at home and at LCG

    They had problems but improved their managementover the years

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    IndiaIndiaIndiaIndia ---- Before the Revolution (90Before the Revolution (90Before the Revolution (90Before the Revolution (90s)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 graduatesfound jobs

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    The High Tech in India TodayThe High Tech in India TodayThe High Tech in India TodayThe High Tech in India Today3 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 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 3years experience

    Good quality (CMM, CMMI5)VCs are starting to invest (475M$ in 2009)

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    Examples for Offshore Activities (India)Examples for Offshore Activities (India)Examples for Offshore Activities (India)Examples for Offshore Activities (India)

    Oracle

    8500 developers

    Microsoft

    3000 developers

    GE4300 developers

    AMD

    3B$ projectChip design

    SAPJava group

    Intel

    1B$ projectChip design

    Cisco

    Half of R&D

    Airbuspart of the wingfor new plain

    Ness/SelaOutsourcingFirms

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    If You Want to Be CompetitiveIf You Want to Be CompetitiveIf You Want to Be CompetitiveIf You Want to Be Competitive

    Innovation

    Much shorter time to market

    Use effectively the LCG groups

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    Things That Will Make The DifferenceThings That Will Make The DifferenceThings That Will Make The DifferenceThings That Will Make The Difference

    MonitoringDevelopment

    processesRecruitment

    CommunicationManagers

    Cultural dailyissues

    Management from

    Israel

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    GeertGeertGeertGeert HofstedeHofstedeHofstedeHofstede Cultural DimensionsCultural DimensionsCultural DimensionsCultural DimensionsPDI Power distribution in the organizationIDV Individualism (Vs. collectivism)

    UAI - Uncertainty Avoidance

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    PDI IDV UAI

    USA

    ISRAEL

    INDIA

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    ManagementManagementManagementManagementIndian 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 managersBe formal and acknowledge hierarchy

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    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 discussit later )

    Give them a presentation about Israel

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    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

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    RecruitmentRecruitmentRecruitmentRecruitment CV out

    Universities - out

    Friend brings friend

    Formal test (professional + personality)

    Give your employees reasons to stay

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    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

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    Development processDevelopment processDevelopment processDevelopment processUsually, they dont 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

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    Daily issuesDaily issuesDaily issuesDaily issuesWilling to work hard

    Punctuality will be an issue (delay in meetings)

    Dress conservativelyBusiness card is important

    Indian rarely turn off their cell phones

    Indian likes to talk about family and home

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    Not Everything Can and Should BeNot Everything Can and Should BeNot Everything Can and Should BeNot Everything Can and Should Be OffshoredOffshoredOffshoredOffshored

    Critical

    FastComplicates

    Core knowledge

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    SummarySummarySummarySummary