Lessons from India’s IT Industry
Deependra Moitra

• Indian IT Industry – A Snapshot
• A Case Study of Infosys Technologies
• Synthesizing Learning
• Determinants of Success in Global R&D
• Discussions
Seeking to provide a 360 º view of R&D Globalization

 Started in 1981 by 7 people with US $250 and a dream to build a globally respected software company of the professionals, for the professionals, and without compromising on ethics

1999: Listed in NASDAQ (first Indian company)
 Year 2004-2005

US $1.5+ Billion in Revenues
 Market Cap of US $19 Billion
 37000 Employees
 Total Number of Clients 440

32 Development Centers and 32 Sales Offices Around the Globe

Has subsidiaries in China and Australia

2004: Set-up Infosys Consulting

Canada
Europe: Stockholm
Brussels
Amsterdam
London
Frankfurt
Paris
Zurich
USA: Atlanta,
Boston,
Chicago,
Dallas,
Detroit,
Los Angeles,
New York,
Fremont,
Seattle
Argentina
India: Bangalore,
Chennai, Pune
Bhubaneswar,
Hyderabad,
Mangalore,
Mohali, Mysore
Delhi, Mumbai
Japan, Australia,
Hong Kong, China,
Singapore, Sharjah,
Mauritius

 Incorporated March 2004 as a 100% subsidiary of Infosys, located in Shanghai
PuDong Software Park

Focus on
 Offering an alternative offshoring destination to global clients
 Providing IT services to regional operations of global clients

Providing IT services to large mainland and North Asian corporations
 Growth plans 180 (current) to 2000 (2006)
 Plans to expand to other cities in China in the next 24 months
To become a best-in-class provider of software solutions to Global 2000 companies by leveraging technology & talent base of
China
V I S I O N

 Project
Management
Skills
 Organizationa l Skills
 Strong Tech
Skills

 Quality and
Process
Maturity
Domain Skills
 Strong
Education
System

Language
Capability

“Business insights, integrated solutions, value multipliers.”
“Powered by intellect, driven by values.”
“The softest pillow is a clear conscience.”
Clients Employees
Investors Society
Value, Delight, Long-term Relationship
“Greater good should always triumph over individual good.”

“In God we trust; everyone else must come with data.”
“The only time and context invariant attributes of a successful organization: innovation, speed and excellence in execution.”
“We should have humility, respect for the competition, and a healthy sense of paranoia; or, we’ll vanish like dew drops on a sunny morning.”

English
Language
Technical
Education
Engineering
Industry
Democracy
Pre-1991
Telecom
Revolution
Capital
Markets
Export
Incentives
Import Tariffs,
Tax Structures
Post-1991
Indian
Diaspora
Technology
Boom
Y2K
Economic
Productivity
Opportunity

• Long-term, value creating, relationship-based model versus transactions based model
– Superior value through competency growth and ownership
• Global presence for a truly global delivery model to deliver on time-to-market, lowered operational cost and reduced cost of quality
• Continuous improvement in quality, productivity and customer satisfaction parameters
• 2-D growth (scale and organizational maturity)
• Source and manage best-inclass “raw material” for the knowledge business
• There are some undesired effects and imbalances, too.

Managerial Technical
HR
Management
Cultural IP Management
Infrastructure
Communications
Language
Project
Management
Government /
Ecology
Trust Distance
Centralization
Vs
Decentralization
Coordination and Alignment Mechanisms

Skills
Flexibility
Confidence
Performance
Relationship
Business Value
Partner
Ownership

Organizational
• Clarity on R&D globalization intent
• Managing organizational change
• R&D globalization model
• Work distribution model
• Integration strategy
• Executive commitment
Policy and Incentives
• Government’s facilitative role
• Tax incentives
• Country attractiveness, economic policies, and educational set-up
• Procedural simplicity
• Minimize geo-political risks
Ecosystem
• Availability of resource pool
(scale and quality)
• Complementarity (venture capital, outsourcing, MNC, R&D Labs)
• Cluster effect and “Spiraling” effect
• Demand creation and opportunities
Other
• Coordination and alignment mechanisms
• Organizational maturity
• Value-based management
• IP regime
Managing Global R&D is a learned competency

$ 1.06 b
Infosys’ growth
1991: $ 2m
Thank You
Questions & Discussions
deependra@moitra.com
www.moitra.com
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