BANGALORE, April 14, 2016 /PRNewswire/ --
- Indian R&D Talent Pool Expected to Grow at a CAGR of 10.9% to Reach One Million by 2020
- The Indian Ecosystem Currently Houses 928 MNCs, With 1165 R&D Centers, Making the Current MNC R&D Talent Pool Stand at 323,000
Leading management consulting firm, Zinnov, today released its latest study on the MNC R&D Talent Landscape in India with very specific focus on Automotive, Aerospace & Defense and Semiconductors verticals. Suggesting a positive and upbeat outlook for the industry, the Zinnov report said that the R&D talent pool is expected to grow at a CAGR of 10.9% and touch 1 million by 2020 from the present 610,000. The Indian ecosystem currently houses 928 MNCs, with 1165 R&D centers, making the current MNC R&D talent pool stand at 323,000, with the Telecommunication/Networking, Semiconductor and Automotive verticals employing approximately 10% each of the total MNC R&D talent pool, respectively.
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The report also puts forward insightful revelations on the talent distribution across locations, stating that 96% of MNCs are set up in tier-1 cities with Bangalore and Pune accounting for the highest concentration of R&D talent. However, tier-2 cities too, with their quality infrastructure coupled with lower operations cost, are gaining prominence in MNCs' decision to set up R&D centers, thus suggesting a rapid evolution of a multi-city R&D ecosystem in the country.
The released Zinnov report, presented the talent spilt across verticals like Automotive, Aerospace & Defence and Semiconductor. Talking about Aerospace alone, the report reads that with top MNCs based out of Bangalore like Airbus, Boeing, Bombardier, Safran, Lockheed Martin, etc, R&D centers in this vertical are aligning their capability with global trends such as IoT and Big Data. Additionally, the Aerospace & Defence MNCs largely employ software and embedded talent with minimum focus on mechanical talent, it added. Aerospace & Defence vertical in India has come a long way in the product-engineering value-chain, from providing just peripheral services to securing high-involvement collaborations for developing whole subsystems, systems, and solutions.
Total MNC R&D talent
Vertical MNCs in India R&D centres pool in India
Aerospace & Defense Nos. 13 Nos. 17 Nos. 3,356
Automotive Nos. 62 Nos. 73 Nos. 30,757
Semiconductors Nos. 58 Nos. 83 Nos. 23,333
Laying specifics on the Automotive vertical, the Zinnov study reads that the MNCs in this vertical have a significant R&D presence in India with players like Mercedes Benz, Visteon, Fiat Chrysler, Renault Nissan, Ford, etc. And when it comes to talent, automotive R&D centers majorly employ mechanical talent but are increasing their hiring focus on embedded and software talent to deliver advanced solutions such as ADAS. It also added that the Deccan Triangle (Pune - Hyderabad - Bangalore) is the automotive hub in India with Pune leading with the highest number of automotive R&D centers in India. While cost arbitrage continues to be a key driver for R&D globalization, automotive vertical in India has progressed from just CAD/CAM solutions to infotainment systems, Advanced Driver Assistance Systems (ADAS) and other core engineering services.
Semiconductor as a vertical, on the other hand, houses names like Intel, Qualcomm, ARM, AMD, Applied Materials, Texus Instruments, etc, in the MNC R&D landscape and Internet of Things (IOT) has boosted the installed talent in this vertical significantly. The centers in this vertical employ software and embedded talent only, it reflected. Additionally, the report also added that India is becoming a key market for most semiconductor companies with initiatives such as 'Digital India' and 'Smart cities' in motion. Most of the centers are focussing on next-generation technologies, which are centered around wireless networking (4G & above) and video technologies. Apart from this, India is also becoming a hub for R&D in developing products for Internet of Things platform.
Speaking about the released study, Anand Subramaniam, Engagement Manager & Project Lead, Zinnov, said, "Attributing the burgeoning talent growth to factors such as the rise in MNCs (over 200 MNCs have entered the Indian ecosystem in the last decade), service providers, tech startups and Indian establishments, we are confident that proactive government initiatives like 'Make in India' and 'Digital India' are expected to further drive the R&D talent intensity in the Automotive, Industrial, Software, Semiconductor and Engineering Services verticals."
"There is an increasing shift in mindsets across the R&D community, moving away from cost arbitrage to value creation. The R&D ecosystem in India has grown at a phenomenal pace in the last decade. MNCs, service providers, tech startups and Indian cos/establishments are driving this growth and by 2020, 49% of the global 500 R&D spenders will have their centers in India," he added.
About Zinnov:
Founded in 2002, Zinnov is headquartered in Silicon Valley and Bangalore. In over a decade they have built in-depth expertise in engineering and digital practice areas. They assist their customers in effectively leveraging global innovation and technology ecosystems to accelerate innovation and digital transformation. Zinnov helps their customers:
With Zinnov's team of experienced professionals, they serve clients in Software, Automotive, Telecom & Networking, Semiconductor, Consumer Electronics, Storage, Healthcare, Banking, Financial Services and Retail verticals in US, Europe, Japan & India.
For more information, visit: http://www.zinnov.com .
For any further media queries, please contact:
Kinjal Chhetri Panwar
[email protected]
+91-8197140140
Zinnov
Sunaina Bajaj
+91-9844476529
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