Wednesday, October 7, 2009
The next phase of outsourcing game has begun. I have been talking to a whole lot of EDA company people (employees) and the feeling is clear namely for EDA companies loss of market share and market size and the consequent decrease in the overall revenue means either innovate or cut costs. The latter seems to be the main stay of EDA executive strategy for now.
Cadence and Synopsys have large design centers in Noida (Delhi) and Bangalore respectively. Cadence has been cutting jobs in Noida for a long time and investigating moving some functions to China (this comes from an existing director in Noida, so has some credibility). Synopsys hasn’t been affected as much and hence not much of lay-offs and outsourcing out of India. Coming to Mentor, it is quite confirmed that Mentor is closing their complete division in Hyderabad and moving people to Poland (you heard it right) due to cost as well as a particular executive (or key manager) who has moved back to Poland. This is clearly the next wave in outsourcing, that is moving out of India to even lower cost places such as eastern Europe or even south-east Asia (eg: Philippines, for call centers). So it has already begun to happen. Hopefully that pushes India (or Indians) to innovate further and really build product companies out of India.
In the meantime, we are acting like greedy dogs and hiring many of those affected people from Mentor at good prices. So much for availability of trained talent in India…