Comments on: Bursting of the India R&D Offshoring Bubble http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/ Sharad Sharma examines the transformation challenges facing the software industry Tue, 14 Oct 2008 19:00:31 +0000 http://wordpress.org/?v=2.0.2 by: Zoommethy http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-284676 Wed, 10 Sep 2008 21:45:26 +0000 http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-284676 [b]Gey Porno Download FREE[/b] [url=http://soskin.servik.com/]gay photo sex[/url] [b]Gey Porno Download FREE[/b]

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]]> by: SoftwareGuy http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-158006 Sun, 09 Dec 2007 12:26:03 +0000 http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-158006 Unlike garment, shoe manufacturing, and other labor intensive tasks R&D cannot be easily broken up into tasks that require intelligence and tasks that require human bots. The idea of offshore appears lucrative because the labor in India is dirt cheap. However, not able to separate R&D project into intelligent design pieces and cheap manufacturing pieces is what is leading to frustrations. Even if one is able to split them, the success will be difficult. Despite cheap labor, India hasn't been successful even in manufacturing, China is generations ahead of India. India is a very complex country with a complex culture. Enforcing discipline and controlling quality is a next to impossible task in India while they are relatively much easier in China. In summary you get much lower ROI. Unlike garment, shoe manufacturing, and other labor intensive tasks R&D cannot be easily broken up into tasks that require intelligence and tasks that require human bots. The idea of offshore appears lucrative because the labor in India is dirt cheap. However, not able to separate R&D project into intelligent design pieces and cheap manufacturing pieces is what is leading to frustrations. Even if one is able to split them, the success will be difficult. Despite cheap labor, India hasn’t been successful even in manufacturing, China is generations ahead of India. India is a very complex country with a complex culture. Enforcing discipline and controlling quality is a next to impossible task in India while they are relatively much easier in China. In summary you get much lower ROI.

]]> by: Mohan http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-552 Mon, 05 Feb 2007 18:20:15 +0000 http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-552 Intersting viewpoints on "Bursting of the India R&D Offshoring Bubble" However, one will have to take the viewpoint with a grain of salt since it is similar to the "India vs. China" debate on offshoring R&D. I guess business leaders already realize that it is not "India vs. China" but "India, China and anywhere it makes good business sense" ;-) Intersting viewpoints on “Bursting of the India R&D Offshoring Bubble” However, one will have to take the viewpoint with a grain of salt since it is similar to the “India vs. China” debate on offshoring R&D.

I guess business leaders already realize that it is not “India vs. China” but “India, China and anywhere it makes good business sense” ;-)

]]> by: Murali Swaminathan http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-49 Sat, 09 Dec 2006 23:30:57 +0000 http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-49 Hi Sharad, Good article. I think India is becoming a credible player towards component responsibility model. There is incredible talent and more are more companies are realizing this and shying away from using offshoring for sustenance work. But I feel the challenge for Indian companies will be retaining talent - senior architects who are half way thru a project leaving for another lucrative offer - could kill the whole project. I strongly believe the leadership of the Indian companies should get together and enforce what I call "free agency" rule. You become a free agent (I am borrowing the american football analogy) say only after you are in a company for minimum 3 years. If all companies agree to this then its a win-win for everyone. Ofcourse, there are exception - family situations etc where you can break this, but the reasons have to be genuine. Hi Sharad,
Good article. I think India is becoming a credible player towards component responsibility model. There is incredible talent and more are more companies are realizing this and shying away from using offshoring for sustenance work.

But I feel the challenge for Indian companies will be retaining talent - senior architects who are half way thru a project leaving for another lucrative offer - could kill the whole project. I strongly believe the leadership of the Indian companies should get together and enforce what I call “free agency” rule. You become a free agent (I am borrowing the american football analogy) say only after you are in a company for minimum 3 years. If all companies agree to this then its a win-win for everyone. Ofcourse, there are exception - family situations etc where you can break this, but the reasons have to be genuine.

]]> by: Ravi Aranke http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-14 Fri, 24 Nov 2006 10:28:29 +0000 http://orbitchange.com/blog/2006/11/21/bursting-bubble-rd/#comment-14 Sharad, Thanks for a very good article. I have circulated to some people who feel that these problems are unique to their own organisation. I think we (India center managers and stakeholders) significantly contribute to the problem ourselves with an unhealthy focus on employee number - the number of staff employed and growth in that number - as a metric of success. As Jurassic age as it sounds, the focus is always on the growth of the number and the additional square feet of the space we want. This drives the Indian center's behaviour more toward an outsourcing vendor's behaviour. You are motivated to take on any and all work. You are motivated to grab the project first and then think about whether it makes sense to execute the project in India. You are pitting against other offshore centers and competing against them. What is worse, your best people's bandwidth is wasted in managing the growth in number. It is time we realise that the number metric makes sense only for services companies like TCS, Infosys, Wipro etc. where no. of staff is proportional to the revenue they generate. An MNC's India center should instead exclusively define itself by metrics that are more meaningful to the organisation as a whole. Sharad,

Thanks for a very good article. I have circulated to some people who feel that these problems are unique to their own organisation.

I think we (India center managers and stakeholders) significantly contribute to the problem ourselves with an unhealthy focus on employee number - the number of staff employed and growth in that number - as a metric of success. As Jurassic age as it sounds, the focus is always on the growth of the number and the additional square feet of the space we want.

This drives the Indian center’s behaviour more toward an outsourcing vendor’s behaviour. You are motivated to take on any and all work. You are motivated to grab the project first and then think about whether it makes sense to execute the project in India. You are pitting against other offshore centers and competing against them.

What is worse, your best people’s bandwidth is wasted in managing the growth in number.

It is time we realise that the number metric makes sense only for services companies like TCS, Infosys, Wipro etc. where no. of staff is proportional to the revenue they generate. An MNC’s India center should instead exclusively define itself by metrics that are more meaningful to the organisation as a whole.

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