Engineering and R&D Services (ERS) EVP & Global Head Sales and Practice
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1 Engineering and R&D Services (ERS) Sandeep Kishore EVP & Global Head Sales and Practice
2 Engineering Services Outsourcing Market Engineering Services Outsourcing (ESO) is a $ 10 B market; 20% of Indian IT Services ESO is expected to be a ~ B market; in addition another $ 5-6 B for domestic Indian ES market Globally Companies spent $ 1.1 T on R&D; 2020 expectedtobe$14t;hugeheadroom to 1.4 for ESO growth *Nasscom/ Booz data 2
3 Growth drivers for Engineering Services Discrete product engineering to complex and complete product development. Product companies are no longer focused only on core products; its about ecosystem, platform, user experience. Next Gen High Growth Segments Consumer (17x), Energy, Industrial and Automation Devices (13x), Computing (10x), Auto (9x), Aero (8x). Role of emerging markets, need for localized products for different markets, gain access to emerging market through differentiated offerings. New Segments Defense and Govt., Energy and Utilities, Smart Devices, M2M, Convergence. Japan and Europe Opening up fast with untapped potential. New Technologies Cloud, Virtualization, Mobility, Social Networking, Android New non linear business models Productized Solutions, Revenue Share Model 3
4 HCL ERS The Market Proposition Core Products Ecosystem Innovation User Experience Domain Based Services PDLC Services System Design Product Management, Dev, Test, Performance, Release, Support Productized Solutions Service Accelerators IPs Focus on Customer s Customers; Solutions that expand the ecosystem Real Time Experience Role Based Experience Form Factor Increased product adoption is based on better user experience Engineering Services Partnership Core Product + Product Ecosystem incl. Solutions + User Experience 4
5 Core Products Engineering Execution Excellence Com mpleteness F 500 Software Company - Product management, Development, Test & Support for a software that receives 40 million signature downloads within 30 min of a virus attack. F 500 Telecom OEM: 60% improvement in customer satisfaction from the product after HCL took over. Tier 1 Storage OEM: 4.5+M LOC; complete ownership for 75% of the SW and Manageability Products. mplexity Co F 500 Aerospace: 20+ subsystems development partner for new aircraft program, 40% footprint Impact, 2.5 mn hours. G 500 Media: 300+ website content management platform; helped move from broadcast to digital. G 500 Consumer Electronics: Common embedded software development and V&V for 6 families of TVs. Criticality F 500 Medical Devices: Class III implantable drug delivery system that sits on the spinal cord. G 500 Tier 1 Automotive: 180 O Panoramic view with 100 ms refresh cycle for active safety system. Cost SMB Wireless Telecom OEM: $900 to 350 cost reduction of base station RF antenna for Indian market. F 500 Industrial: 40% impact for emerging market products. F 500 Aerospace: 100% redundancy built into the slat-flap control unit. G 500 Telecom OEM: Sub $90 mobile phones development. 5
6 Ecosystem Innovation examples of HCL s Productized Solutions Cloud Cirrus: HCL Cirrus framework for Windows Azure enable customers to adopt Microsoft cloud. ROI/TCO calculator, Enterprise library automating upto 40% of workload dev, rule based predictive and non predictive spike mgmt., automated application ops. Management. SaaS Agora: Agora is a cloud services platform that helps customers to move to a subscription based business model. Non-intrusive Multi-tenancy enablement; third party cloud services on-boarding, self care portal, partner & reseller mgmt. Case study by Microsoft; 5 pilots with G 500 customers Implemented at 7 F 500 customer UC UECP: A modular, scalable and cost effective UC solution that combines multiple functions voice, routing, switching, secure VPN tunnels, firewall, NAT, QoS into one platform. OEMs / Customers can pick features; functionalities, H/w Form factor, integration with exiting products. Auto Safe ety ITS E-Call: Public e-call solution, readily deployable, complying with Pan-European standards CEN & ETSI. Modular structure on which value added d applications such as B-Call, Remote Vehicle Diagnostics, Insurance Telematics & Stolen Vehicle tracking can be quickly built on. In adoption by 2 Tier 1 In adoption by Tier 1 OEMs for SMB segment OEM as an safety device Last 12 months, 17 solutions have been 6 developed; 10 more in pipeline
7 Significant investments in the ERS business Lab bs & Infrastru ucture 40 State-of-the-art Development centers In 6 major locations in India and 5 other locations globally 80 Customer Specific Labs including 10K Clean rooms for high sensitivity instruments in Semiconductors, Medical Devices Software/Hardware/Mechanical setups with latest servers & storage components for Aero, Auto, Consumer and Industrial Mfg Qu uality & Proc cess CMMI Level 5 ISO :2005 BS :2002 ISO/IEC 27001:2005 BS7799-2:2002 ISO ISO PCMM Industrial Manufacturing ISO/TS IEC Medical Devices ISO13485:2003 Automotive ISO16949 SPICE Avionics AS 9100 DO 178 / 254 Telecom TL 9000 Software ISO/IEC 27001:2005 Part tnerships & Alliances Hardware Software Forum Education IISc Bangalore IIT Madras 7
8 Resulting in a market leadership position 4 service lines SW, HW, Mechanical, Embedded Engg. 9 Industries incl. Hitech, Aero, Auto, Medical, Industrial, SW 34 years of Complex Engineering Experience 200+ Global Customers $650+m business engineers Focus on Product/ Solutions/ Services Innovation Consistent focus on Product Lifecycle Management Unique and differentiated Product + Ecosystem + User Experience Approach Partnership Approach - Skin in the game Core Product Development Time to market advantage with Productized Solutions approach Focus on User Experience to increase product adoption Focus on creating business impact $20 Billion of engineering roadmap for our key customers in last 3 years Improved go to market for 200 products by 20%+ 8% of ERS business from Revenue Share model 100+ patents filed on behalf of our customers $12+Mn invested in solutions, service accelerators and reusable components Leadership Position in the Industry 15% of Outsourced Engineering and R&D services spend from India 6.5% market share of Total Engineering and R&D services spend from India 8
9 Thank you 9
10 1 0
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