Dvir Zohar 054 5555668 dvir@simplesolutions.co.

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World My World

Agenda
Offshore R&D Offshore in India Effective management of offshore in India

Offshore Is Everywhere
Manufacturing
textiles, toys, cars, . Services call centers, accountants, MRI, presentations

Hi tech manufacturing

R&D

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 PCs, IT students, internet, infrastructure etc.)

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

(90 India - Before the Revolution (90s)

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 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 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) VCs are starting to invest (475M$ in 2009)

Examples for Offshore Activities (India)

Cisco Half of R&D Oracle 8500 developers Intel 1B$ project Chip design Airbus part of the wing for new plain Microsoft 3000 developers

AMD 3B$ project Chip design

GE 4300 developers Ness/Sela Outsourcing Firms

SAP Java group

If You Want to Be Competitive

Innovation Much shorter time to market Use effectively the LCG groups

Things That Will Make The Difference

Managers Management from Israel Communication

Monitoring

Recruitment

Development processes

Cultural daily issues

Hofstede Geert Hofstede Cultural Dimensions

PDI Power distribution in the organization IDV Individualism (Vs. collectivism) UAI - Uncertainty Avoidance
90 80 70 60 50 40 30 20 10 0 PDI IDV UAI USA ISRAEL INDIA

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

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

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

Recruitment
CV out Universities - out

Friend brings friend Formal test (professional + personality) Give your employees reasons to stay

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

Development process
Usually, 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

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

Not Everything Can and Should Be Offshored

Critical Fast Complicates Core knowledge

Summary