Zinnov Study: Indian R&D centers face shortage of level 4 leaders
New Delhi, India, March 7, 2013: Zinnov, a Globalization Advisory and Market Expansion firm, today released a study on the levers that will drive future growth for MNC R&D centers in India and focused on the essential link between Leadership and Value Growth, demonstrating the significance of proactive leaders to maintain India’s attractiveness as an R&D destination.
The study, conducted among 100 multinationals with an R&D presence in India, revealed that only 26% of Indian MNCs have Global Roles from India, despite having over 40% of their headcount being represented out of the India center and its increased competency over a decade.
The study also brought to light an interesting connection between the importance of India centers and the type of leader at the helm. Known as Level 4 leaders, these individuals have global alignment and influence, are inspirational, proactive and their impact is global, not just limited to their India mandate.
Pari Natarajan, CEO, Zinnov, said, “In recent times, India has seen considerable success in attracting MNC firms to set up their R&D centers in India. In addition, there are several inherent advantages – levers for growth – that India has over other economies in the region. Over the next five years, fresh talent from top tier engineering institutions alone will reach a quarter of a million. However, even as India continues to attract R&D centers, we also need to be able to increase our value contribution. Therefore it is of utmost importance that India R&D leaders aspire to take advantage of these levers and demonstrate their ability to continue driving headcount and value growth out of India.”
Reflecting at the importance of developing internal pools of leadership, the Zinnov study brought to light that leaders who have come from within the company have been able to grow the center faster. While 37% of lateral-grown leaders were able to grow headcount significantly, just 12% of external hires could match the pace. Similarly, 29% of lateral-growth leaders made a high value contribution, while only 18% of external hires could do so.
The study additionally revealed some attributes that can potentially act as Levers for future growth of MNC R&D centers in India.
- India has potential to be the globalization hub for emerging economies such as Thailand, Malaysia, Indonesia, Saudi Arabia, UAE, Vietnam, Cambodia, Phillippines and Turkey. In addition, India can also potentially address market requirements of nations in Africa such as South Africa, Nigeria, Algeria, Angola and Egypt.
- Another advantage that India R&D centers have, the study found, include the presence of large internal and external ecosystem. Today India R&D centers have teams across business units and functions, and a majority of the global top 500 R&D spenders have their own centers in India.
- And lastly, the presence of software expertise in country can also influence the future roadmap of non high-tech verticals that are increasingly investing in technology as a differentiator and value driver.
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