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The Indian Promise

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Zinnov
Zinnov

The document summarizes the growth of the MNC R&D ecosystem in India over the past few decades. Some key points: - The number of MNCs with R&D centers in India has grown exponentially from 16 in 1990 to over 900 currently. - Major centers are located in Bangalore, Pune, and Hyderabad, dubbed the "Deccan Triangle." - MNC R&D centers in India are making significant contributions in terms of operations and business impact for their parent companies.

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The Indian Promise
2 Source: Zinnov Research and Analysis USD 17 Billion Efficiency advantage 260K Direct Jobs 1Million Indirect Jobs 906 MNCs have an R&D presence in India USD 26+ Billion Revenue Addition 229 of G500 R&D spenders have centers in India 50 New MNCs have set up centers in India since 2012 In the past decade, the MNC R&D ecosystem in India has grown exponentially and contributed significantly in terms of operational and business impact to their HQ Note: G500 refers to global 500 spenders Making a Big Impact
3 Source: Zinnov Research and Analysis 1990 1995 2000 2005 2010 2014 16 47 151 456 813 906 Total number of MNC R&D companies with a presence in India 1158 ~176 MNCs have setup more than 1 R&D Center in India MNC R&D Centers Bangalore , Pune and Hyderabad, coined as the Deccan Triangle, have the largest concentration of R&D CentersCenters in the Deccan Triangle 701 • One of China's biggest electronics companies that designs, develops, and sells smartphones, mobile apps, and consumer electronics • A large enterprise resource planning software and retail solutions provider • A large publicly traded international oil and gas company MNCs expected to set up R&D Center in India in the near future Global organizations continue to recognize India as a preferred destination for R&D with 50+ organizations setting up their R&D Centers in the last two years
4 Source: Zinnov Research and Analysis A strong and vibrant ecosystem has enabled centers in India to identify synergies, collaborate and develop solutions for both India and the globe Vibrant Ecosystem Innovation Fueled • 277,000 strong installed talent • 8% installed talent growth rate (CAGR) • 300+ National Laboratories • USD 26 Billion opportunity in FY2014-15 across different technology areas • 350+ Service Providers • 172K Installed Talent in Product Engineering Services (PES) divisions of Service Providers • Increase in Risk-Reward models for higher levels of partner engagement MNC R&D Universities • 4000+ technology startups • 400 VCs & 2500 Angel Investors • 150+ incubators • Over US$ 100+ Bn total domestic IT Market by 2020 • Over 238 Mn internet users • Fastest growing smartphone market in Asia • 400+ Universities* • ~960K Engineering Graduates Start-ups Vendors Government Market *A university has multiple colleges under it
5 Source: Zinnov Research and Analysis Breaking Barriers - Success Stories of India Centers Some of the demonstrable wins by India centers include end to end product development, identification of blue sky opportunities and establishment of technology competence Building a Product End to End from India for Globe •Human Body Model (HBM) – A mathematical model of real humans for simulation of road fatalities leading to safer car designs Building a Product End to End from India for India •The VNT DualBoost Turbo charger that helped in: •Improved engine performance •Fuel economy •Responsiveness •Low friction ball bearings •Pedestal mounting Owning P&L from India •Adobe owns the complete P&L of a product Innovation for India and Globe •A cost effective next generation mobile wireless router that garnered customers from North America, Europe, Africa and Asia Innovation through Incubation •A dedicated team responsible for developing prototypes, patents out of the India Center and is sponsored by the CTO office Building a CoE out of India •Positioning for local markets & exploring emerging technology solutions with long range strategic targets
6 Source: Zinnov Research and Analysis  5.7% GDP Growth Apr-Jun - highest in nine quarters  Aim to lower fiscal deficit to 4.1% of GDP by Mar 2015  13% Rise in NCAER’s quarterly Business Confidence Index in June 2014  INR 7,060 crores allocated to build Smart Cities  1.5 crore bank accounts opened in 1 day  49% FDI limit in Defense and Insurance  14 IITs, IIMs and AIIMs to be setup Modi’s 100-Day Impact Digital India “IT( Information Technology) + IT ( Indian Talent) = IT (India of Tomorrow)” India as the Innovation Hub “I am confident that India will become the world’s innovation hub in ICT” Next Gen Infrastructure “Focus on infrastructure needs to shift from highways to "iways" and optical fibre networks” Enhance Ease of Doing Business “Maximum governance and Minimum government” Revive Manufacturing “We should become a Global Manufacturing Hub” 5 India’s Growth Levers As identified by Modi The Indian ecosystem is expected to be further bolstered by a new government and it’s vision to accelerate the country’s economic growth
7 Source: Zinnov Research and Analysis Strong Government Support Local Supplier Ecosystem Contribution of Indian industries in realizing a variety of hardware, components, sub systems and systems  Research Funding Autonomous operations conducted by ISRO leading to no bureaucratic interference Availability of Expert Talent Specialized talent from institutions like IISc, IIST etc Scientists with Phds from tier-1 institutes driving programs Ecosystem Connect  Tie up with 52 academic institutions (Tier-1 & Tier-2 institutions) Connect with other space agencies world-wide like NASA, SANSA EnabledBy More Funds for Applied & Basic Research Increased talent in the field More PhDs aspiring to work in the research domain A case in point being Mangalyaan – India making history in maiden attempt with the Mars Orbitor Mission INR 450 Crores 1/10th of the cost of a similar US mission India’s first Interplanetary Mission 4th in the world to succeed 1/4th of the time taken by NASA for a similar mission As small as TATA NANO car 1350 kgs- equal to the weight of a mid sized car Impact on the Local Ecosystem For smaller organizations involved with the programme Potential for export orders in areas of defence, aeronautics etc. Enhanced Visibility Technology Knowledge Transfer ISRO offers the know-how of their technology to entrepreneurs and R&D Centers in India Boost to the local manufacturing and supplier ecosystem
8 Source: Zinnov Research and Analysis Increase in number of products teams in Product Leadership stage in India by 2016 1 2 3 Maturity 20132010Maturity Assessment 0% 50% 100% 2016 E EngineeringSupport Module Leadership EngineeringLeadership Product Leadership Maturity HighLow Global Roles Innovation INDIA: Propelling R&D Centers to greater heights ~2xIncrease in Global Roles in India by 201630% Product teams in India are high in maturity and are building products for India and global markets 1/3rd 70% Global Roles in India are primarily in Engineering teams • Accelerators • Industry Associations Examples of Global Roles in India The future looks promising for India with MNC R&D Centers taking big bold bets, institutionalizing more global leadership roles and moving to higher states of maturity 7K Start-ups in India by 2016 Deepak V VP & MD- NetApp India Pvt. Ltd Suresh V Head - Global Operations, Honeywell, India Dr Mahesh Mehendale CTO – MCU, Texas Instruments India Nagesh Biligiri Director, eBay. Inc, Head of APAC Technology Talent Acquisition The Future Higher maturity
9 Source: Zinnov Research and Analysis Big Data UI/UX Machine Learning Software Defined Networking Analytics Mobility 8% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 6% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 31% YoY Talent Growth Rate 5th Largest Talent Pool Globally * 9% YoY Talent Growth Rate 2nd Largest Talent Pool Globally * 7% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 34% YoY Talent Growth Rate 2nd Largest Talent Pool Globally * HOT SKILLS India will be the largest exporter of talent “ “ Narendra Modi Madison Square, USA - …With a large pool of technical talent acting as a catalyst for this growth and establishing India’s dominance in the technology industry *Country ranking based on skill-set availability HOT SKILLS
Bangalore 69 "Prathiba Complex", 4th 'A' Cross, Koramangala 5th Block, Bangalore-560 095. Phone: +91-80-41127925/6 Gurgaon Office: First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100 Singapore Level 42, Suntec Tower Three 8 Temasek Boulevard Singapore 038988 Phone:+65 6829 2123 California Office 3080 Olcott Street Suite A125, Santa Clara, CA 95054 Phone: +408-716-8432 Texas 21, Waterway Ave Suite 300 The Woodlands TX-77380 USA Phone:+1-281-362-2773 Beijing Meilifang Tower 4, Entrance 4, 10/F #1003, 11 Beiyuan Shuangying Road, Chaoyang District, Beijing China 100012 Thank You

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The Indian Promise

  • 2. 2 Source: Zinnov Research and Analysis USD 17 Billion Efficiency advantage 260K Direct Jobs 1Million Indirect Jobs 906 MNCs have an R&D presence in India USD 26+ Billion Revenue Addition 229 of G500 R&D spenders have centers in India 50 New MNCs have set up centers in India since 2012 In the past decade, the MNC R&D ecosystem in India has grown exponentially and contributed significantly in terms of operational and business impact to their HQ Note: G500 refers to global 500 spenders Making a Big Impact
  • 3. 3 Source: Zinnov Research and Analysis 1990 1995 2000 2005 2010 2014 16 47 151 456 813 906 Total number of MNC R&D companies with a presence in India 1158 ~176 MNCs have setup more than 1 R&D Center in India MNC R&D Centers Bangalore , Pune and Hyderabad, coined as the Deccan Triangle, have the largest concentration of R&D CentersCenters in the Deccan Triangle 701 • One of China's biggest electronics companies that designs, develops, and sells smartphones, mobile apps, and consumer electronics • A large enterprise resource planning software and retail solutions provider • A large publicly traded international oil and gas company MNCs expected to set up R&D Center in India in the near future Global organizations continue to recognize India as a preferred destination for R&D with 50+ organizations setting up their R&D Centers in the last two years
  • 4. 4 Source: Zinnov Research and Analysis A strong and vibrant ecosystem has enabled centers in India to identify synergies, collaborate and develop solutions for both India and the globe Vibrant Ecosystem Innovation Fueled • 277,000 strong installed talent • 8% installed talent growth rate (CAGR) • 300+ National Laboratories • USD 26 Billion opportunity in FY2014-15 across different technology areas • 350+ Service Providers • 172K Installed Talent in Product Engineering Services (PES) divisions of Service Providers • Increase in Risk-Reward models for higher levels of partner engagement MNC R&D Universities • 4000+ technology startups • 400 VCs & 2500 Angel Investors • 150+ incubators • Over US$ 100+ Bn total domestic IT Market by 2020 • Over 238 Mn internet users • Fastest growing smartphone market in Asia • 400+ Universities* • ~960K Engineering Graduates Start-ups Vendors Government Market *A university has multiple colleges under it
  • 5. 5 Source: Zinnov Research and Analysis Breaking Barriers - Success Stories of India Centers Some of the demonstrable wins by India centers include end to end product development, identification of blue sky opportunities and establishment of technology competence Building a Product End to End from India for Globe •Human Body Model (HBM) – A mathematical model of real humans for simulation of road fatalities leading to safer car designs Building a Product End to End from India for India •The VNT DualBoost Turbo charger that helped in: •Improved engine performance •Fuel economy •Responsiveness •Low friction ball bearings •Pedestal mounting Owning P&L from India •Adobe owns the complete P&L of a product Innovation for India and Globe •A cost effective next generation mobile wireless router that garnered customers from North America, Europe, Africa and Asia Innovation through Incubation •A dedicated team responsible for developing prototypes, patents out of the India Center and is sponsored by the CTO office Building a CoE out of India •Positioning for local markets & exploring emerging technology solutions with long range strategic targets
  • 6. 6 Source: Zinnov Research and Analysis  5.7% GDP Growth Apr-Jun - highest in nine quarters  Aim to lower fiscal deficit to 4.1% of GDP by Mar 2015  13% Rise in NCAER’s quarterly Business Confidence Index in June 2014  INR 7,060 crores allocated to build Smart Cities  1.5 crore bank accounts opened in 1 day  49% FDI limit in Defense and Insurance  14 IITs, IIMs and AIIMs to be setup Modi’s 100-Day Impact Digital India “IT( Information Technology) + IT ( Indian Talent) = IT (India of Tomorrow)” India as the Innovation Hub “I am confident that India will become the world’s innovation hub in ICT” Next Gen Infrastructure “Focus on infrastructure needs to shift from highways to "iways" and optical fibre networks” Enhance Ease of Doing Business “Maximum governance and Minimum government” Revive Manufacturing “We should become a Global Manufacturing Hub” 5 India’s Growth Levers As identified by Modi The Indian ecosystem is expected to be further bolstered by a new government and it’s vision to accelerate the country’s economic growth
  • 7. 7 Source: Zinnov Research and Analysis Strong Government Support Local Supplier Ecosystem Contribution of Indian industries in realizing a variety of hardware, components, sub systems and systems  Research Funding Autonomous operations conducted by ISRO leading to no bureaucratic interference Availability of Expert Talent Specialized talent from institutions like IISc, IIST etc Scientists with Phds from tier-1 institutes driving programs Ecosystem Connect  Tie up with 52 academic institutions (Tier-1 & Tier-2 institutions) Connect with other space agencies world-wide like NASA, SANSA EnabledBy More Funds for Applied & Basic Research Increased talent in the field More PhDs aspiring to work in the research domain A case in point being Mangalyaan – India making history in maiden attempt with the Mars Orbitor Mission INR 450 Crores 1/10th of the cost of a similar US mission India’s first Interplanetary Mission 4th in the world to succeed 1/4th of the time taken by NASA for a similar mission As small as TATA NANO car 1350 kgs- equal to the weight of a mid sized car Impact on the Local Ecosystem For smaller organizations involved with the programme Potential for export orders in areas of defence, aeronautics etc. Enhanced Visibility Technology Knowledge Transfer ISRO offers the know-how of their technology to entrepreneurs and R&D Centers in India Boost to the local manufacturing and supplier ecosystem
  • 8. 8 Source: Zinnov Research and Analysis Increase in number of products teams in Product Leadership stage in India by 2016 1 2 3 Maturity 20132010Maturity Assessment 0% 50% 100% 2016 E EngineeringSupport Module Leadership EngineeringLeadership Product Leadership Maturity HighLow Global Roles Innovation INDIA: Propelling R&D Centers to greater heights ~2xIncrease in Global Roles in India by 201630% Product teams in India are high in maturity and are building products for India and global markets 1/3rd 70% Global Roles in India are primarily in Engineering teams • Accelerators • Industry Associations Examples of Global Roles in India The future looks promising for India with MNC R&D Centers taking big bold bets, institutionalizing more global leadership roles and moving to higher states of maturity 7K Start-ups in India by 2016 Deepak V VP & MD- NetApp India Pvt. Ltd Suresh V Head - Global Operations, Honeywell, India Dr Mahesh Mehendale CTO – MCU, Texas Instruments India Nagesh Biligiri Director, eBay. Inc, Head of APAC Technology Talent Acquisition The Future Higher maturity
  • 9. 9 Source: Zinnov Research and Analysis Big Data UI/UX Machine Learning Software Defined Networking Analytics Mobility 8% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 6% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 31% YoY Talent Growth Rate 5th Largest Talent Pool Globally * 9% YoY Talent Growth Rate 2nd Largest Talent Pool Globally * 7% YoY Talent Growth Rate 3rd Largest Talent Pool Globally * 34% YoY Talent Growth Rate 2nd Largest Talent Pool Globally * HOT SKILLS India will be the largest exporter of talent “ “ Narendra Modi Madison Square, USA - …With a large pool of technical talent acting as a catalyst for this growth and establishing India’s dominance in the technology industry *Country ranking based on skill-set availability HOT SKILLS
  • 10. Bangalore 69 "Prathiba Complex", 4th 'A' Cross, Koramangala 5th Block, Bangalore-560 095. Phone: +91-80-41127925/6 Gurgaon Office: First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100 Singapore Level 42, Suntec Tower Three 8 Temasek Boulevard Singapore 038988 Phone:+65 6829 2123 California Office 3080 Olcott Street Suite A125, Santa Clara, CA 95054 Phone: +408-716-8432 Texas 21, Waterway Ave Suite 300 The Woodlands TX-77380 USA Phone:+1-281-362-2773 Beijing Meilifang Tower 4, Entrance 4, 10/F #1003, 11 Beiyuan Shuangying Road, Chaoyang District, Beijing China 100012 Thank You