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Green IT will top the technology disruption

Published Date: 
Jun 15, 2009
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Source: 
NA

Coverage in CXO Today – This is an exclusive interview done with HCL by CXO Today. In this GH Rao, Corporate Vice President and Head, Engineering and R&D Services, HCL Technologies discusses the trends in the R&D offshoring space, the post-recession scenario and growth of R&D business in the domestic market.

R&D outsourcing services differs from IT offshoring Key essentials are maturity of service offering & prior experience in product development. For R&D outsourcing, cost is no longer the overriding factor; competency is the key factor.

Low cost solution or cost arbitrage has ceased to drive engineering offshoring services. Customers are increasingly evaluating the fitment of services vendor within their development ecosystem ability to collaborate & work seamlessly between the 2 teams, as the main criteria to select their strategic sourcing partner.

We believe that there is potential in emerging markets like South Africa, Brazil, Eastern European countries for building near-shore engineering services operations and hence our investment in these countries to service our customer better. However, from a geographic competition view, these markets need to focus on gaining maturity in scale operations before they can be considered as competing against the efforts made in India over the last 20 years in R&D sourcing services.

Source: 
NA
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