The research and development (R&D) landscape in India witnessed decent salary hike and rapid growth in the year gone by and the industry expects a steady outlook for this year as well,says a study.
According to market research firm Zinnov,2011 witnessed strong revival of R&D investments in India and worldwide,signalling the optimism in world economy which earlier reported a drop in R&D investments in 2010.
India currently has an installed R&D talent pool base of over 200,000 engineers growing at an average of 9 per cent a year for the last five years.
The R&D segment witnessed a salary hike of 13 per cent,and there was also a focused approach on career enhancement by ensuring increased ownership,better work profile,and competitive pay to retain talent,the study noted.
Consequently,after a steep increase in 2010,R&D centres have managed to control attrition levels at 17.4 per cent. Moreover,best-in-class companies have been able to keep their attrition rate well below the industry average.
“The industry expects the salary increments this year to be very similar to 2011. MNC R&D centres in India are expected to continue to focus on various other key enablers as well for higher value generation,” Zinnov Director-Market Expansion Praveen Bhadada said.
Zinnov noted though nearly half of the world’s largest R&D spenders have their centres in India,China is giving tough competition and emerging as a R&D hotspot in specific areas/verticals.
“China continues to give us tough competition,but we are confident that the innovative business approach and renewed focus of these R&D centres will hold us in good stead going forward,” he added.
Interestingly,many non-US companies have started looking at the country as a viable R&D investment option and planning to set up R&D centres in this lucrative market.
At present,about 28 per cent companies with HQ in Japan,EU and APAC have their centres in India and this is likely to increase going forward,which is a very healthy indicator for India as it continues its ‘battle of dominance with China. Besides,there is also a rapid evolution of a multi-city R&D ecosystem in the country which was earlier concentrated in few Tier I cities,the study noted.