Outsourcing Practices of Major Technology MNCs in India

• Examining present scenario of R&D outsourcing Activities in India with special reference to reasons for outsourcing, Popular Models of outsourcing, Outsourcing strategies, Criteria of outsourcing etc.
• An assessment of Outsourcing activities through case studies of major MNC’s in India.
• Profiling major technology MNC’s with the information on their management practices, perceived reasons for outsourcing, value proposition by companies in outsourcing.

• Technology MNC’s in India
• Small & Medium vendors
• Local Technology Software Companies
• Consultants
• Entrepreneurs
• Corporates

1. Executive Summary

2. Introduction

3. R&D Outsourcing Activities in India- The Ecosystem

3.1 Reasons for outsourcing

3.1.1 Recognized Outsourcing Index of India

3.1.2 Vast Access to Skill base

3.1.3 Strong quality orientation

3.1.4 Availability of quality infrastructure

3.1.5 Enabling Government Policies

3.1.6 Availability of private equity

3.1.7 Serious about data security concerns

3.1.8 R&D services and software products

3.2 Popular models of outsourcing in India

3.2.1 General models

3.2.2 General process of developing captives in India

3.3 Outsourcing Strategies

3.4 Criteria for Outsourcing

3.4.1 Criteria for Manpower, Project, ODC, IP Outsourcing

3.4.2 Criteria for vendor selection/partnering

3.5 Types of vendor agreement 3.5.1 Standard Type of Agreements

3.5.2 Service Level Agreement (SLA)

3.5.3 Subcontracting

3.5.4 Termination clause

3.5.5 Indemnity clause

3.5.6 Enforceability clause

3.5.7 Technology refresh clause

3.5.8 IPR (Intellectual Property Rights) Protection

3.5.9 Employment clause

3.6 Vendor Evaluation

3.7 Outsourcing Security Policy

3.7.1 General method of vendor risk assessment

3.7.2 General method of captive risk assessment

3.7.3 Security Management by Major Vendors in India

4. Outsourcing Activities- Case studies of major MNCs in India

4.1 Company Information

4.1.1 Nokia

4.1.2 Motorola

4.1.3 Texas Instruments

4.1.4 Hewlett-Packard (HP)

4.1.5 Alcatel-Lucent

4.2 Vendor Cost- The current scenario

4.3 Captives of the companies in India

4.3.1 Nokia

4.3.2 Texas Instruments

4.3.3 Motorola

4.3.4 Hewlett-Packard

4.3.5 Alcatel-Lucent

4.4 Management practices of the captives

4.4.1 Texas Instruments (TI)

4.4.2 Nokia

4.4.3 Motorola

4.4.4 Hewlett-Packard

4.4.5 Alcatel-Lucent

4.5 Perceived Reasons for outsourcing to India

4.5.1 Nokia

4.5.2 Motorola

4.5.3 Texas Instruments (TI)

4.5.4 Hewlett-Packard (HP)

4.5.5 Alcatel-Lucent (formerly Lucent Technologies)

4.6 Outsourcing Strategies

4.6.1 Nokia

4.6.2 Motorola

4.6.3 Texas Instruments (TI)

4.6.4 Hewlett-Packard

4.6.5 Alcatel-Lucent

4.7 Value Proposition by companies in Outsourcing

4.7.1 Value Proposition of Nokia

4.7.2 Value Proposition of Motorola

4.7.3 Value Proposition of Texas Instruments

4.7.4 Value Proposition of HP

4.7.5 Value Proposition of Alcatel-Lucent

4.8 Auditing Policy of Companies

4.8.1 Nokia

4.8.2 Motorola

4.8.3 HP

4.8.4 Texas Instruments (TI)

4.8.5 Alcatel-Lucent

5. Conclusion

LIST OF FIGURES

Figure 1: Outsourcing Index Ranking of countries

Figure 2: Evolution of engineering outsourcing in India

Figure 3: Saving and Control scenario in outsourcing models

Figure 4: Process of developing a captive in India

Figure 5: Common strategy of outsourcing by companies

Figure 6: Basic criteria for outsourcing

Figure 7: Emerging business model deciding outsourcing

Figure 8: General Vendor Selection Criteria

Figure 9: General contents of a complete SLA

Figure 10: Vulnerability Management Model

Figure 11: Captives of Nokia in India

Figure 12: Captives of TI in India

Figure 13: Captives of Motorola in India

Figure 14: Captives of Hewlett-Packard in India

Figure 15: Captives of Alcatel-Lucent in India

Figure 16: Local outsourcing management scenario

Figure 17: Loss due to ineffective outsourcing operation management

Figure 18: Outsourcing strategy of Motorola

Figure 19: Outsourcing strategy of TI

Figure 20: Outsourcing strategy of HP

Figure 21: Outsourcing strategy of Alcatel Lucent

Figure 22: Emerging relationship model

LIST OF TABLES

Table 1: Position of Indian cities in terms of basic infrastructure

Table 2: Vendor Evaluation Matrix

Table 3: Details of the vendors/third party of Nokia in India

Table 4: Details of the vendors/third party of Motorola in India

Table 5: Details of the vendors/third party of HP in India

Table 6: Details of the vendors/third party of Alcatel-Lucent in India