Indian Service Providers Emerge Ahead in Zinnov’s Annual Global R&D Service Provider Ratings 2013
Key Findings of the Study:
• Overall R&D spending by companies across the world continues to grow at a brisk rate. Top 500 R&D spenders alone have invested close to about 560 Billion USD in R&D
• R&D globalization continues to be on the rise and India and China are garnering a major share of the engineering services revenues; Over 225 new R&D centers were set up in India in the last 5 years
• Indian service providers continue to retain the lion’s share of the overall Engineering and R&D outsourcing pie – accounting for about 23% of the overall market
• Currently the total exports in the Engineering R&D outsourcing segment from India stood at USD 16.3 Billion. However, the growth in the Engineering R&D and outsourcing segment lagged the overall Indian industry growth rate and stood at 10.9%
• Engineering analytics is a significant opportunity area, with overall spending in this segment set to increase to about 27 Billion USD by 2017 at the rate of 16.5%
3. Aerospace: Ratings
3
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
Infotech Enterprises
Infosys
Wipro
TCS
Tata
Elxsi
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Mechanical,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Mechanical,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Mechanical / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Eco-system
Connect
Tech Mahindra
Quest Global
Note:
Source: Zinnov Research & Analysis
eInfochips
L&T TS
HCL
4. iGATE
Automotive
4
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
HCL
Wipro
Tata Elxsi
L&T TS
Infosys
Symphony
Teleca
Eco-system
Connect
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
TCS
KPIT
Cummins
Tech
Mahindra
Mindtree
BeyondSoft
Note:
Source: Zinnov Research and Analysis
Tata
Technologies
Sasken
5. Computer Peripherals and Storage: Ratings
5
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
HCL
Infosys
Wipro
BeyondSoft
iGATE
Mindtree
Symphony
Teleca
Calsoft Labs
Eco-system
Connect
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
TCS
Note:
Source: Zinnov Research and Analysis
6. Construction and Heavy Machinery: Ratings
6
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
TCSInfotech Enterprises
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Tech
Mahindra
Eco-system
Connect
Symphony
Teleca
Note:
Source: Zinnov Research and Analysis
L&T TS
Tata
Technologies
7. Consumer Electronics: Ratings
7
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
HCL
Infotech
Enterprises
Sasken
Wipro
L&T TS
Tata Elxsi
iGATE
Mindtree
Symphony
Teleca
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Eco-system
Connect
TCS
eInfochips
Note:
Source: Zinnov Research and Analysis
BeyondSoft
Tech Mahindra
GlobalLogic
Infosys
8. Energy: Ratings
8
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
Infotech Enterprises
L&T TS
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Tech
Mahindra
Eco-system
Connect
TCS
Symphony
Teleca
Wipro
Note:
Source: Zinnov Research and Analysis
HCL
Infosys
9. Industrial Automation
9
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
iGATE
HCL
Wipro
L&T TS
Eco-system
Connect
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
TCS
Tech
Mahindra
Note:
Source: Zinnov Research and Analysis
eInfochips
Infosys
10. Enterprise Software: Ratings
10
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Innovation
Customer Type
WiproVirtusa
EPAMMindtree
Symphony
Teleca
Infosys
Cybage
Pactera
iGATE
Aspire
Systems
BlueStar Infotech
Sonata
Software
Persistent
GlobalLogic
• Capable of performing concept to Go-
To-Market for the product
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Worlds Largest ISVs
• Capable of delivering complete
product development as a true
engineering partner
• Reusable components IP’s built, and
benefits quantified
• Large ISVs and Niche ISVs
• On the way into big league
• Innovation frameworks resulting in
tangible benefit to customers
• Niche ISVs
• R&D and PES as a focus area
• Innovation, if at all, in process
optimization
• Generic ISVs, Startups
Calsoft Labs
Beyondsoft
Xchanging
HCL
Note: TCS did not participate in this particular category – however, based on the analysis Zinnov estimates that TCS capabilities are at par with the leadership zone
Source: Zinnov Research and Analysis
11. Consumer Software: Ratings
11
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Innovation
Customer Type
Mindtree
EPAM
Wipro
Persistent
GlobalLogic
Pactera
Aspire
BlueStar Infotech
Sonata
Software
Symphony
Teleca
Cybage
• Capable of performing concept to Go-
To-Market for the product
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Large Internet and Consumer ISVs
• Capable of delivering complete
product development as a true
engineering partner
• Reusable components IP’s built, and
benefits quantified
• Large Internet and Consumer ISVs
• On the way into big league
• Innovation frameworks resulting in
tangible benefit to customers
• Niche ISVs
• R&D and PES as a focus area
• Innovation, if at all, in process
optimization
• Generic ISVs, Startups
HCL
Beyondsoft
Infosys
Note: TCS did not participate in this particular category – however, based on the analysis Zinnov estimates that TCS capabilities are at par with the leadership zone
Source: Zinnov Research and Analysis
12. Medical Devices-Ratings
12
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
HCL
Infosys
Wipro
L&T TS
BlueStar
Infotech
Tata Elxsi
iGATE
GlobalLogic
Symphony
Teleca
Infotech
Enterprises
Eco-system
Connect
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
TCS
Note:
Source: Zinnov Research and Analysis
13. Semiconductor: Ratings
13
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Innovation
HCL
Wipro
Sasken
Mindtree
Tata Elxsi
Infotech
Enterprises
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Eco-system
Connect
L&T TS
TCS
eInfochips
GlobalLogic
Note:
Source: Zinnov Research and Analysis
Infosys
Symphony
Teleca
14. Telecommunication: Ratings
14
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
Aricent
Wipro
HCL
Mindtree
Pactera
Persistent
Infosys
Sasken
GlobalLogic
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
Infotech
Enterprises
Symphony - Teleca
L&T TS
Beyondsoft
TCS
Eco-system
Connect
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
Tech Mahindra
Tata Elxsi
Note:
Source: Zinnov Research and Analysis
Calsoft Labs
15. Transport: Ratings
15
Low
High
Scalability
R&D Practice
Maturity
Zinnov Zones – Leading Service Providers
Nurture Zone Breakout Zone Execution Zone Leadership Zone
Breadth
Innovation
Infotech
Enterprises
L&T TS
Tech Mahindra
• Capable of performing concept to Go-
To-Market for the product –Significant
investment in Lab infrastructure
• Niche capability across Engineering,
Embedded and Software services
• Formal innovation culture, resulting in
IP’s and strategic innovations
• Leadership role in alliances, leverage
startups, Specific academic research,
and co-creation with customers
• Capable of delivering complete
product development as a true
engineering partner, Customer Labs
• Niche capability spans across two
service types and at least generic
capability level in one service type
• Reusable IP’s built, and benefits
quantified
• Alliances with Customers who are
Industry Leaders
• On the way into big league, delivering
R&D services effectively, tear down ,
purpose fit labs
• Generic Capability across Engg,
Embedded and Software services and
Niche capability in one area
• Innovation frameworks resulting in
tangible benefit to customers
• Specific industry alliances,
partnerships and membership in
Global forums
• R&D and PES as a focus area
• Niche capability in one type of PES
service (Engineering / Embedded /
Software)
• Innovation, if at all, in process
optimization
• Generic - MoUs with universities and
alliances
iGATE
Eco-system
Connect
TCS
Note:
Source: Zinnov Research and Analysis
16. Thank You
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