Date:07/08/2008 URL: http://www.thehindu.com/2008/08/07/stories/2008080755381900.htm

Business

Zinnov launches ‘innovation council’

Special Correspondent

BANGALORE: Research and development offshoring to India by international IT majors is now a $9.35 billion industry that can grow to $21.4 billion by 2012, if R&D centres here create products on their own, P. Natarajan, CEO, Zinnov Management Consulting, said here on Wednesday.

Drawing from extensive research on R&D offshoring by Intel, Microsoft ,Google and others and the experience of Israel and Taiwan, he said “This sector may grow at a CAGR of 23 per cent with most of the growth driven by larger centres and service providers. They now contribute 25-35 per cent of global R&D for many technology firms”.

From sheer necessity, Israel and Taiwan began innovating and had their own experienced research and technology personnel when the U.S. and other western countries went for the offshore model, he said. The value addition they provided became more important than the cost factor.

Zinnov has launched an `Innovation Council’, a forum for senior managers in the technology R&D sector to evolve best practices.