Financial Daily from THE HINDU group of publications
Saturday, Aug 06, 2005
Financial Daily from THE HINDU group of publications Saturday, Aug 06, 2005 |
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Info-Tech
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Research & Development Wipro making R&D services next battleground: Forrester Rukmini Priyadarshini
Bangalore , Aug 5 FORRESTER Research has found that Wipro's new product engineering services is making R&D services the next battleground for both MNCs like IBM and Indian offshore players like Infosys. The 10,000-strong group with 120 active clients and accounting for 36 per cent of the group's revenues has been identified by Forrester as part of the new Indo-Chinese innovation network that will become a major hub in the `global electronics innovation networks'. At a time when outsourcing in the global electronics industry is growing globally at 20 per cent per annum, Indian IT providers want to capitalise on the trend. The domestic R&D services market is expected to grown from $2.3 billion today to $11 billion by 2008-10, according to Nasscom. Forrester says Wipro's strong R&D play will enable it to compete for a chunk of that outsourcing. Especially since its PES (product engineering services) group already has partnerships with Chinese and Taiwanese semiconductor foundries, SMIC, TSMC and UMC. Other Indian IT providers such as TCS and Infosys are expected to follow the Wipro model. The partnerships enable `Indian IT tigers' to finance and broker their R&D service clients' access to Chinese electronics manufacturers, the Forrester report concludes. Key differentiating factors for Wipro's PES services lie in its well-honed domain knowledge, deep technology know-how, expertise in process methodologies, regional market insights and investments in intellectual property, says the researcher.
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