Posts Tagged ‘Outsourcing’

Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products

Thursday, March 1st, 2012

New publication from the Institute for Technology and Innovation Management, Hamburg University of Technology (TUHH)

Title: Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products
Authored by: Rajnish Tiwari and Cornelius Herstatt
Publication date: March 2012
Download: http://www.global-innovation.net/publications/PDF/Working_Paper_69.pdf

—–
Abstract

This study builds on our previous work, which had questioned the validity of certain assumptions of the lead market theory in the face of changing ground realities in a globalized world. Sustained economic growth and proven technological capabilities in some “emerging economies” like China and India call for a reassessment of the appropriateness of the “conventional wisdom” that had held true until recently. While our previous study had “re-built” a theoretical background of the lead market model by introducing some new elements, and doing away with certain others, with the help of two in-depth case studies; the purpose of the present study is to specifically assess India’s potential as a lead market for cost-effective frugal innovations.

The study crystallizes the inherent characteristics of frugal innovations, their development process and market success in the domestic and overseas markets by analyzing four successful product innovations from selected industries in India. The factors identified thus are then incorporated in the theoretic model to derive propositions about India’s lead market potential. Whereas affordability and economies of scale have traditionally constituted the primary concern for frugal innovations, an increasing shift towards “value proposition” is identified. Intensifying competition and growing customer aspirations are changing the nature of frugal innovations. The hitherto unserved customer demands attractive designs and modern technologies to come out of his shell of “non-consumption”. Our research confirms that frugal innovations can benefit end-consumers and firms, simultaneously. Better-designed products also have positive impact on the lead market potential, creating a virtuous cycle. The study also discovered that the increasing need for sophistication coupled with continued cost pressures is shifting the product development processes into the domain of “open global innovation”, which also helps reduce the negative country-of-origin effects faced by developing countries. The research would have implications for location decisions in setting up global innovation/R&D activities.

Keywords: Lead Markets; Frugal Innovations; India; Bottom of the Pyramid; Global Innovation; Open Innovation; Emerging Economies.

Infosys reportedly gave up China investment plans for IPR fears on clients’ side

Sunday, September 11th, 2011

According to a news item appearing the Economic Times (7th Sept. 2011) Indian IT major Infosys gave up its plans for increasing foreign direct investment (FDI) in China as its major customers in Europe and the USA had apprehessions about their data procession and/or software-related work being done in China owing to fears about the protection of intellectual property rights.

The report cites as source a US diplomatic cable which has been released by WikiLeaks. It also narrates an incidence, which N.R. Narayana Murthy, Co-founder of Infosys reportedly told US diplomats:

Murthy said he understood the misgivings of his clients and narrated his experience in China to show how rampant piracy was. Stepping out of his central Beijing hotel to go for a stroll with Peter Bonfield, then CEO of British Telecom, they encountered a sidewalk vendor selling pirated Microsoft and Windows products.

Bonfield jokingly asked the vendor if he had Finacle (an Infosys banking software product) and the vendor replied: “I can get it for you tomorrow.”

Murthy, was at the same time quite clear about China’s potential, its qualities, and HR problems that it faces, as is clear from the next section:

Murthy, however, was optimistic about the long-term potential of China. As per the cable, he stated: “There is nobody better than the Chinese at solving a problem once they are serious about it.” Murthy said it would take four to five years for the Chinese to overcome that reluctance.

There were other concerns for Infosys to expand in China. Murthy told the diplomats that though qualified graduates were available, those with sufficient English skills commanded a high premium. He said retention was more difficult in China than in India, as Chinese professionals are more willing to leave for a higher salary where Indian ones value institutions a bit more.

The whole report is available at: The Economic Times (11.09.2011)

‘Partnering for Success’ – Roche partners with Mahindra Satyam

Thursday, May 26th, 2011

(Source: Press release from Mahindra Satyam, dated: 19.05.2011)

Hyderabad, India – May 19, 2011: Mahindra Satyam, a leading global consulting and IT services provider, today announced that it has inaugurated the Roche Offshore Delivery Center (ODC) at Hyderabad.

Christian Hebich, Global Head, IT End-User & Operations Services, Roche, inaugurated the state-of-the-art ODC which will be housed in Mahindra Satyam’s Infocity campus at Hyderabad. The Center will deliver services on application development, testing, project management, communications and training to support the design, build and deployment of IT Lifecycle Services.

“‘Partnering for Success’ reflects our organizational commitment to seamlessly collaborate with Roche IT and treat their end-customers as our own. Our acknowledged and proven excellence in delivery quality will be leveraged even further, to support Roche’s accelerated business growth,” said Vikram Nair, Senior Vice President & Head, Mahindra Satyam Europe.

The ODC inauguration is the beginning of a partnership between the two enterprises in the domain, which started with collaborative delivery of multiple services for the Process Alignment Program (PAP) to support the IT Lifecycle Services at the beginning of 2011.

The successful ‘Go-Live’ of the alignment project in 101 countries including Turkey, Brazil, United States, Switzerland, Germany, Greece, Poland, South Africa and India began in January this year.

“We are extremely pleased that Roche is partnering with Mahindra Satyam. This partnership enables us to create and deliver additional value to customers. This clearly demonstrates the growing confidence Roche has in the Knowledge-based IT Industry in India.” said Dr. Girish Telang, Vice-Chairman & Managing Director, Roche Products (India) Pvt. Ltd.

About Roche, India

Roche Products (India) Pvt. Ltd. (formerly known as Roche Scientific Company (India) Pvt. Ltd. was incorporated in India in April, 1994. Roche has made personalised healthcare the cornerstone of its innovative strategy and the main focus is to bring clinically differentiated medicines to address unmet medical needs in the treatment of cancer and other complex diseases for the benefit of patients. With a patient-centric approach in mind, Roche in India has achieved the status of scientific leadership in the fields of Oncology, Transplantation & Anaemia, Virology and Rheumatology. Towards fulfilling the above objectives, the Company has focused its activities towards:-

  • Disseminating scientific and other information regarding availability and accessibility of Roche products and creating awareness among the medical fraternity, hospitals, institutions and patient community in India;
  • Marketing support services for all Roche products in India.
  • Ensuring registration of new products with the Health Authorities.
  • Supporting clinical trials in all therapeutic areas in compliance with applicable legislation.

For more information: www.roche.com

About Mahindra Satyam

Mahindra Satyam is a leading global business and information technology services company that leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance.

The company’s professionals excel in enterprise solutions, supply chain management, client relationship management, business intelligence, business process quality, engineering and product lifecycle management, and infrastructure services, among other key capabilities.

Mahindra Satyam is part of the $11.1 billion Mahindra Group, a global industrial federation of companies and one of the top 10 business houses based in India. The Group’s interests span automotive products, aviation, components, farm equipment, financial services, hospitality, information technology, logistics, real estate and retail.

Mahindra Satyam IMS is a leader in offering innovative and transformational infrastructure services to enterprises helping them build and manage their IT infrastructure more efficiently and effectively.

Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations.

For more information, see www.mahindrasatyam.com

Follow us on Twitter: http://twitter.com/mahindra_satyam

For clarifications, write to us at: MediaRelations@mahindrasatyam.com

Nokia cuts R&D jobs in India

Friday, April 29th, 2011

The Financial Express (27.04.2011) reports that the global mobile handset-maker Nokia would cut “up to 300 jobs in the R&D segment […] in India by the end of 2012”. Qutoing agencies it further states:

Without disclosing finer details, the official said that most of the people working on Symbian would be transferred to Accenture.

Sources said about 800-900 jobs are likely to affected in India in the R&D (Research and Development) segment. Nokia’s India operations has a total workforce of about 10,000. Out of them, around 1,500 employees are in the R&D section.

The Finnish major in a statement today announced plans to align its global workforce and consolidate site operations, which would result in cost reductions 1 billion euro.

Nokia plans to enter into a strategic collaboration with Accenture, whereby it would transfer its Symbian software activities as well as about 3,000 employees to that firm.

“Transitioning employees, located in China, Finland, India, United Kingdom and the United States, will initially work on Symbian software activities for Nokia,” it said.

Source: http://www.financialexpress.com/news/nokia-to-axe-up-to-300-jobs-in-india/782384/0# (Posted: Wednesday, Apr 27, 2011 at 1558 hrs IST)

Tech Mahindra opens a new development centre in Bonn, Germany

Friday, March 18th, 2011

Delivering end-to-end Telecom solutions closer to customers

Bonn, 10th March, 2011: Tech Mahindra, India’s leading provider of solutions and services to the telecommunications industry and part of the US $ 8.25 Billion, Mahindra Group, announced the inauguration of its development centre in Bonn, Germany. The state-of-the art facility located in Sirius Business Park, encompasses fully-equipped infrastructure to service clients in Germany as well as Central Europe. Tech Mahindra, providing end-to-end telecom solutions to Telcos globally, has an annual turnover of US$ 976.6 Mn, of which, annual turnover of US$ 976.6 Mn, of which, the contribution of Europe is almost 54%. Within Europe, Germany is the largest revenue contributing country after UK, for Tech Mahindra. The company started its operations in Germany more than 10 years back with offices in Munich and Dusseldorf. Through this strategic move Tech Mahindra plans to further leverage its proven capabilities as a transformation partner and provide an array of business and technology, closer to the customer.

Speaking on the occasion, Mr. Rishi Bhatnagar, AVP-Tech Mahindra said, “As a global player and leader in the Telecommunications domain, we are always keen on strengthening our local front-end capabilities in the region. This development centre will intensify Tech Mahindra’s reach, traction and growth plans within Germany, and enable us to transfer value advantage to our customers. Currently, we have three large engagements in Germany, supporting our Telcos with end-to-end development, Managed Services, large scale legacy outsourcing and transformation among others services. For Tech Mahindra, Europe is a critical market with immense potential and growth.”

The company has a global footprint in 25 countries with 126 clients worldwide. This new facility, equipped with world class infrastructure, will focus on building up localized capabilities to serve Tech Mahindra’s European clientele.

About Tech Mahindra

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry, part of the US$ 8.25 Billion Mahindra Group, India. With total revenues of US $ 976.6 million for FY0910, Tech Mahindra serves telecom service providers, telecom equipment manufacturers, and software vendors. Tech Mahindra enables clients to maximize return on IT investment by providing solutions which help the clients achieve shorter time-to-market, reduced total cost of ownership, and high customer satisfaction. Tech Mahindra achieves this through its domain and process expertise, distinctive IT skills, research and development, and proven innovative delivery models. Assessed at SEI-CMMi Level 5, Tech Mahindra is supported by over professionals from across the globe who provide a unique blend of culture, domain expertise and in-depth technology skill-sets.

For more details please contact:
Smriti Dave
Tel. +91 20 6601 8100, Extn.1779
Mobile: +91 9881124858
corporate.communications@techmahindra.com

Source: Company press release