www.skpcrossborder.com May 2005
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India Inc - Investment briefs

Now, even Hollywood's outsourcing to India

The multibn-dollar dream machine, Hollywood, is keen on outsourcing animation work to Indian studios in a big way. Producer of blockbusters such as "Lord of The Rings", "The Matrix" etc- Barrie M. Osborne- is said to be in touch with some Indian studios working in the field of animation and digital special effects for undertaking specific works. Sources also indicate that he may want to collaborate with some of the Indian studios in the near future for doing digital visual effects and animation work.

"I think the talent is here. The artistry and rich cultural heritage of India offer a great opportunity for the Indian animation industry to work for Hollywood," Osborne affirmed.

According to industry estimates, the Indian animation sector has the potential to generate about $1.5 bn annually. But, though Indian animation firms have the skill sets for visual or special effects, they lack the right direction. This may however not be the case, with several institutions working at providing world class technologies and education in India.

Motorola to set up R&D lab in B'lore

In an effort to use the city’s research talent pool, Motorola recently announced setting up of its applied research lab in Bangalore. The company already has a preexisting 10 year presence in Bangalore that develops 40% of its handset software.This is the 11th Motorola lab across the world. The company intends to initially employ 30-35 people, with mostly advanced degrees.

The lab will work on new aspects of next generation networking technology and embedded application. The research focus will support Motorola’s vision of seamless mobility, which it believes is the next phase of the Internet revolution. The lab is intended to develop an understanding of the complexities and nuances of the Indian market and interpret Motorola’s seamless mobility vision specifically for India.
The company has so far invested $150-200 mn in India. The company employs nearly 2,000 people in its software division , a number which grew by over 50% in 2003-04.

Motorola said its R&D investment in India this year had grown to $85 mn from nearly $50 mn in 2002. It plans to increase this by 10-20% per year.

Motorola is also exploring investments to build a handset making factory in India, one of the fastest growing telecom markets in the world. India is currently a key centre for "soft manufacturing" for reference to design and components. However, Motorola’s rival handset maker Nokia has already announced the decision of setting up of a manufacturing facility in India near Chennai.

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Quick Links
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India Inc
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Now, even Hollywood's outsourcing to India
Motorola to set up R&D lab in B'lore

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