Posts Tagged ‘IT’

India Still Lags in Innovation

Tuesday, September 8th, 2009

Much has been made in the world’s press about India’s economy buoyed by its IT sector. And a lot of it is justified.  The nation’s IT sector managed to grow some 20 percent in 2008, according to India’s National Association of Software and Services Companies, and IT firms have already extended 100,000 job offers for 2009.

india-outsourceBut all is not rosy for India.  While the country has surged in the basic and mid-level areas of coding and development, it has struggled in the area of R&D and top-end innovation.  India produces about 300,000 computer science graduates a year.  Yet it produces only about 100 computer science PhDs, a small fraction of the 1,500 – 2,000 that get awarded in the United States or China every year according to a recent article from Reuters.

“Students here are not exposed to research from an early age, faculties are not exposed to research and there’s no career path for innovation because there’s a lot of pressure to get a ‘real’ job,” said Vidya Natampally, head of strategy at the Microsoft India Research Centre.  Rival China has already pulled ahead with more than 1,100 R&D centers compared to less than 800 in India, despite lingering concerns about rule of law and intellectual property rights (IPR).  India is also losing out in the patent stakes. In 2006 – 2007, just 7,000 patents were granted in this country of 1.1 billion people, compared to nearly 160,000 in the United States.

India is cheaper than China for R&D.  But salaries in India have been rising by about 15 percent every year and may soon reach parity with China. R&D centre costs in Shanghai are currently just 10-15 percent higher than in India.

But this could be changing:  Microsoft, for example, has just opened a new facility in Bangalore staffed with about 60 full-time researchers, many of them Indians with PhDs from top universities in the United States.  The center “is at the cutting edge of Microsoft’s R&D, covering seven areas of research including mobility and cryptography.  Cisco, IBM, Intel, Nokia are among the other companies going beyond low-end coding to bring R&D to India.

Jacob Cherian is AlterNow’s India Contributor. He is a freelance business writer based in Kerala, India.  He has written about business outsourcing for Offshore Advisor.

The 7 Habits of Highly Effective CREs

Monday, April 21st, 2008

The Spring 2008 issue of Development Magazine quotes Mark Gibson, Leader, Strategy and Operating Real Estate Advisory Services for Ernst & Young, on the seven skills that corporate real estate executives should bring to the table, listing them in order of importance:

  • Project Management
  • Strategic Planning
  • Process Implementation
  • Understand the Business
  • Fortitude
  • Real Estate

Real estate makes the bottom of the list.  This is interesting and a concession to the idea that the new commercial real estate executive is largely a strategist with a global perspective who reports directly to the CFO and works to harmonize real estate with IT and HR to achieve enterprise-level objectives.  The one thing I think Gibson missed is CRM (Client Relationship Management) which remains, along with strategy, where the focus of the internal corporate real estate department is since the movement toward outsourcing began in the 1990s.