An introduction to Zinnov and the need for organizations to globalize

1. Zinnov | Confidential
Zinnov Introduction
September 2014

2. Zinnov | Confidential
 Started in 2002 with a focus on helping technology organizations globalize their
operations
 Operations in Silicon Valley, Houston, Bangalore, Beijing, Singapore and Delhi
 120 consultants spread across these locations
Evolution
Service offering
Customer Type
Focus Areas R&D Innovation Talent
Global Technology
Firms
Indian Technology
Firms
Government Associations
Balanced
globalization
Setup
strategy
Growth
strategy
GAP
Business
Transformation
Technology
Zinnov is one of the world’s leading management consulting firms
with a focus on helping organizations globalize their business

3. Zinnov | Confidential
ClienteleVertical
Semiconductor/CE
Manufacturing R&D
Enterprise software
companies/ storage
Companies
Telecom and
Networking
Zinnov’s consulting clientele has a heavy representation from the top 10 of
each industry vertical (illustrative list)

4. Zinnov | Confidential
Zinnov is a globalization advisory firm with strong capabilities in defining the
globalization roadmap for organizations
Engineering
& IT
Excellence
Globalization
Strategy Review
& Definition
Location
Analysis &
Captive Set Up
Sourcing
Strategy, Vendor
Selection &
Vendor
Management
Globalization
Accelerator
Platform
Industry
benchmarks and
frameworks
Networking
opportunity with
peers
Thought leadership
and on demand
insights
Branding
opportunities
Business
Strategy &
Expansion
Business
Strategy
Account
Management
M&A/Operation
s Optimization
Customer
Connect
Emerging
Markets
Direct Sales
Maximization
Channel Design
and Monitoring
Solution
Ideation
Opportunity
Assessment &
Go to Market
Service Offerings

5. Zinnov | Confidential
Insight Snippets1
Agenda
5

6. 6x faster growth compared to overall IT market
Use cases across all industry verticals: Banking,
Insurance, Retail, Media etc.
“U.S could face a shortage of up to 190,000 workers
with deep analytical skills by 2018”
The talent supply in the US will be inadequate to meet the future demand for emerging skillsets like Big Data
“Demand for deep analytical talent in the United
States could be 50 to 60% greater than its projected
supply by 2018”
“1.5 million additional managers and analysts
required in the US with capability to ask the right
questions and consume the insights from Big Data”
Significant Big Data and Analytics Talent shortage
6
Source: Wikibon Report on Big Data Market 2013; Talent shortage details are from the McKinsey report: Big Data: Next frontier in Innovation, competition and productivity
$7.3
$11.8
$18.6
$28.5
$38.4
$45.3
$50.1
2011 2012 2013 2014 2015 2016 2017
Big Data Market Forecast 2011-2017 ($ Bn)

7. Median Age by Country, 2020
Median Software Developer Salaries (in USD)*
48.2
44.6
40.4 39.8 38.1 37.9
33.4 31.4
28.1
Japan Western Europe UK Russia China USA Brazil Indonesia India
20.1
19,850
27,900
49,10029,350
39,250
63,20057,850 63,850
76,000
129,600
142,250
166,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Bangalore Shanghai São Paulo Bay Area *Average years of work experience considered was 5 years.
Cost of talent in US will continue to be significantly higher than in emerging countries like China and India
7Source: Zinnov Research & Analysis

8. Amazon has a satellite in London and centres of excellence in Berlin (Machine Learning),
Bangalore (Machine Learning and Global Payments) and Cape Town (Amazon Web
Services)
Samsung has a large R&D presence in the Bay Area, Bangalore and has growing
engineering teams in underpenetrated, emerging locations such as Kiev, Ukraine and
Dhaka, Bangladesh.
Intuit is building products in India for India – its products are customized and sold to
Small and Medium Businesses across India.
Facebook is running global initiatives to increase internet penetration worldwide and
acquiring companies that make accessing the internet easier from feature phones.
Google and Microsoft are sponsoring an initiative via the Indian IT industry body
NASSCOM to fund 10,000 domain specific start-ups with angel funding of $50k-$300k,
access to mentors and 3-4 months of incubation support.
Samsung’s Catalyst Fund has been investing in Indian start-ups. For example, in April’14 it
invested in Ineda, a Hyderabad-based wearable devices chip start-up.
MNCs are already reacting by globalizing their talent pool, tapping emerging markets and engaging with local eco-systems
8Source: Zinnov Research & Analysis

9. US based companies will have to globalize to manage the talent shortage for emerging skillsets
9
Talent in US for emerging skillsets will be inadequate and
expensive to meet future demand
MNCs are already reacting by globalizing their talent pool for
emerging skillsets
Need for Globalization Purpose of Study
What is the current geographical distribution of emerging
skillsets? What will it be in the future?
What are the drivers controlling the future geographical
distribution of talent for emerging skillsets?
What are the emerging skillsets driving IT growth?
Have peer companies started reacting to the impending
talent shortage in the US for emerging skillsets?
What should Microsoft’s global engineering footprint look
like for the emerging skillsets?
The future market growth in IT will come from emerging
countries such as China and India

10. India and China’s employable STEM talent graduating from universities every year will overtake the USA by 2030
Annual STEM Graduates Heat Map: 2013-2030
Although actual STEM talent graduating in India and China each year are approx. 1.2 and 3 million respectively, employability
rates of ~25% and ~15% substantially reduce the employable talent pool
As investment in education increases in India and China, the employability rates will also go up drastically, contributing to an
even higher rate of growth in annual STEM graduates
Developed countries such as USA, UK and Canada, while enjoying a high employability ratio, do not have a young population,
and fails to attract them towards STEM education adequately to meet future demand
STEM Talent Drivers
10
37 37 38 38
336 342 348 355
128 130 131 133
297 314 331 349
394 419 445 473
USA
Canada
UK
India
China
Annual STEM Talent
graduating in Country
that year (‘000)
2013202020252030
Source: Zinnov Research and Analysis
Annual STEM Talent
Growth Rate (CAGR)
2013-30

11. India and China will add YoY twice as many software product development engineers between 2013 and 2030 as compared to the
USA
Software Product Development Talent Heat Map: 2013-2030
The MNC software companies like IBM, Oracle, HP, SAP are the top SPD employers across geos.
SPD talent in India is employed by MNC software companies as well as domestic IT firms such as Infosys, TCS
Chinese SPD talent is engaged by MNC software companies and domestic firms such as Tencent, Baidu
TALENT FOCUS
11
51 55 58 61
626
711
780
854
32 35 37 39
173
253
331
434
148
227
308
418
USA
Canada
UK
India
China
Installed Software
Product
Development Talent
in Country (‘000)
2013202020252030
Median Salary for Software
Developer in 2030 ($)
200k
175k
225k
60k
80k
Source: Zinnov Research and Analysis
Note: University STEM talent growth rates have been used for calculating the 2030 installed talent
Refer to slide
notes for a
definition of
Software Product
Development

12. Big Data and related skill-sets talent in India and China will surpass the US by 2030 with comparable quality, greater scalability and
lower costs
Big Data and related skill-sets Talent Heat Map: 2013-2030
Large local companies in India and China are hiring Big Data Analytics and Deployment talent
MNCs such as Google, IBM etc.. are tapping emerging countries for talent and market
Global VC firms in India and China are accelerating the growth of the local startup ecosystem
TALENT FOCUS
Big Data and related skill-sets: Big
Data, Machine Learning, Language
Processing, Video/Audio
12
12 18 23 29
133
187
239
306
20 47
87
160
31
77
147
281
34
92
184
371
USA
Canada
UK
India
China
Installed Big Data &
Big Data Application
Talent in Country
(‘000)
2013202020252030
140
Professionals with 10+ years
experience in 2030 (‘000)
Median Salary for Software
Developer in 2030 ($)
200k
9
175k
30
225k
53
60k
12
80k
Source: Zinnov Research and Analysis
Note: University STEM talent growth rates have been used for calculating the 2030 installed talent

13. India will greatly increase its ‘high quality at a low cost’‘ Security/Privacy deployment and development talent pool by 2030
UK
India
China
Canada
USA
99
140
179
229
7 9 11 13
13
Security/Privacy Talent Heat Map: 2013-2030
2013202020252030
Professionals with 10+ years
experience in 2030 (‘000)
Median Salary for Software
Developer in 2030 ($)
The US Govt. is hiring security/privacy talent, and employs 20-30% of the current US talent
Financial nerve-centers such as New York, London and Toronto are hotbeds for security/privacy talent
India’s Security/Privacy talent is growing in Security Solutions Deployment and Development
23 31 38 47
16 35 61
107 5 12 22 39
Installed
Security/Privacy
Talent in Country
(‘000)
77
4
15
37
41
200k
175k
225k
60k
80k
TALENT FOCUS
Source: Zinnov Research and Analysis
Note: University STEM talent growth rates have been used for calculating the 2030 installed talent

14. Android/iOS talent in India and China is increasing rapidly with a focus on 3rd party mobile app development and localization of mobile
apps
UK
India
China
Canada
USA
191
270
344
440
14
60
130
226
396
32
73
133
240
29 39 49 60
18 23 27 32
2013202020252030
Professionals with 10+ years
experience in 2030 (‘000)
Median Salary for Software
Developer in 2030 ($)
The US, UK, Canada talent is driven by the presence of large markets for paid apps in these countries
The need for localization of apps for China is driving the Android/iOS talent pool
India’s growth in app development is driven by service providers such as Infosys and TCS
Installed Android/iOS
Talent in Country
(‘000)
130
24
40
130
75
Android/iOS Talent Heat Map: 2013-2030
200k
175k
225k
60k
80k
TALENT FOCUS
Source: Zinnov Research and Analysis
Note: University STEM talent growth rates have been used for calculating the 2030 installed talent

15. Growth of Design talent for enterprise software will be substantial in India and China with a large talent base available by 2030
UK
India
China
Canada
USA
15
22 40 61
93 9 20 36
66
163
230
294
376
17 22 25 30
27 37 46 57
Design Talent Heat Map: 2013-2030
2013202020252030
Professionals with 10+ years
experience in 2030 (‘000)
Median Salary for Software
Developer in 2030 ($)
Rapid growth in the mobile app and gaming industry is driving design talent growth globally
India and China’s design talent growth is focused in software UI/UX design and mobile app UI/UX design
US, UK and Canada’s design talent is spread across software UI/UX design, product design, mobile app UI/UX design, game
designers and webpage designers
Installed Design
Talent in Country
(‘000)
230
21
37
40
20
200k
175k
225k
60k
80k
TALENT FOCUS
Source: Zinnov Research and Analysis
Note: University STEM talent growth rates have been used for calculating the 2030 installed talent

16. 16
US has good quality talent across the skill-sets but average scalability and very high costs
Skill-set
Demand Drivers Supply Drivers
Domestic Market Employer Industries Talent Quality Talent Scalability# Cost Benefits
Big Data and related skill-sets*
US has the largest Big Data
market
MNC Tech Cos.
IT Service Providers
US has high quality talent
in big data software and
analytics
Average scalability due to
average fresh university
talent supply
US has among the highest
talent cost for the given
talent quality
Security/Privacy
US has the largest
Security/Privacy market
Govt. Agencies
MNC Tech Cos.
Banks and Financial Cos.
US has high quality talent
in security software
development
Average scalability due to
average fresh university
talent supply
US has among the highest
talent cost for the given
talent quality
Android/iOS
US has the largest market
for paid apps
MNC Tech Cos.
Gaming Cos.
US has high quality talent
in android/iOS across the
tech. stack
Average scalability due to
average fresh university
talent supply
US has among the highest
talent cost for the given
talent quality
Design
US has the largest market
for design
MNC Tech Cos.
Gaming Cos.
US has high quality talent
in product, mobile app and
game design
Average scalability due to
average fresh university
talent supply
US has among the highest
talent cost for the given
talent quality
*Big Data and related skill-sets: Big Data, Machine Learning, Language Processing, Video/Audio
# Talent Scalability: Refers to the incremental fresh talent pool coming in from universities
Source: Zinnov Research and Analysis

17. Google has 34 R&D centers spread across the globeGoogle’s product strategy is market driven and it has established global R&D centres to access talent as well as access
regional market insights.
Source: Annual reports, Zinnov Research and Analysis
17
• Google has a Hub and Spoke model. Google’s product ownership is
distributed across two hubs - Mountain View, and New York and
these centres manage work allocation to satellites and outposts.
• Selected on basis of talent availability or market needs.
• Usually small outposts with regional objectives. As these outposts
grow in engineering maturity, they might evolve into satellites.
• Access to quality talent in key skillsets across geographies.
• Growing its R&D presence in outposts across emerging markets,
gives Google local insights that feed into products and services for
these regions.
• A presence across geographies helps building with brand-building
especially among regions where it is trying to increase internet
penetration.
• Lack of critical mass in many satellite and outposts make it difficult
for Google to retain quality engineering talent. For instance, senior
leadership in Google India have either left the organization or
moved back to HQ.
• Lack of strong leadership in emerging markets has hindered
Google’s ability to compete with its local peers – for instance, Baidu
in China.
Headquarters
Engineering Hub
Satellite
Outpost
Talent
Market Insight
Cost
Acquisition
• Google is driving growth in emerging markets
by engaging customers through its marketing
teams. Its strategy involves connecting more
consumers (through low-cost mobile phones
and tablets) creating more regional content
(open source fonts, voice recognition, and
getting small business online.

18. Google has 34 R&D centers spread across the globe
Source: Annual reports, Zinnov Research and Analysis
Facebook has a product driven strategy and its R&D model is geared towards accessing talent in large technology
ecosystems.
Facebook has an engineering hub in Menlo Park, CA where much
of the R&D is concentrated. It distributes engineering activities
to its outposts in the US, UK and Israel while retaining product
ownership.
 Facebook has an R&D presence in the three largest
technology clusters worldwide – Bay Area, New York,
London.
 Facebook also establishes an R&D presence as a
consequence of acquisitions. (Eg: Tel Aviv, Israel)
Facebook spearheaded internet.org – a project to make
affordable access to basic internet services available to
every person in the world.
In India, Facebook recently crossed 100M active users
and Facebook is focusing on driving user monetization
through its local sales and marketing teams. 18
Headquarters / Engineering Hub
Engineering Hub
Satellite
Outpost
Talent
Market Insight
Cost
Acquisition
Facebook does not have R&D teams in global locations to serve
as listening posts. Nevertheless, the Facebook platform is able
to track, consolidate and analyse data from users across global
locations.
 Collocated R&D teams results in quicker decision-making,
agility in development and quicker time to market.
 A presence in key technology clusters gives Facebook access
to quality engineering talent.

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Santa Clara, CA 95054
Phone: +1-408-716-8432
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TX – 77380
Phone: +1-281-362-2773
@zinnov
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