In the last decade, global operations of technology companies have grown significantly. Companies have started and grown their global operations due to multiple reasons including access to talent, low cost of operations, new markets, 24 by 7 operations etc.
Early this year, we conducted a survey to understand the globalization leverage ratio across the technology industry. We studied these companies to understand what percentage of their R&D headcount is in their head quarter country and what percentage is outside the head quarter country. Outside head quarter country could include other developed nations in Europe, Japan, and Australia etc.
To provide insights for our audience, we split the companies in to 4 categories by their global revenue numbers. In Category 1 were the companies that had annual revenue of less than 10 Billion. Category 2 had annual revenues between 10 - 30 Billion. Category 3 had revenues between 30 - 50 Billion and Category 4 had annual revenues of over 40 Billion.
Our research survey showed that companies in the category 1, those with annual revenues of less than 10 Billion had on an average 41% of their R&D talent outside their headquarter country. Since most of the companies studied in this category were headquartered in US, they had almost 40% of their R&D talent outside the US.
Companies with annual revenues between 10 - 30 Billion had an average headcount of 43% outside their headquarter country.
Companies with revenue between 30 - 40 Billion had the largest globalization headcount ratio for their R&D activities. On an average, 51% of their R&D headcount was outside their home country.
Large companies, those with over 50 Billion in revenue had about 45% of their R&D headcount outside of their headquarter country.
We also looked at the locations for these companies global operations. Not surprisingly, Bangalore in India had the number R&D centers of the analyzed companies. Beijing and Shanghai in China came in 2nd and 3rd. Other cities with large MNC captive centers included Seoul, St. Petersburg in Russia, Taipei, Singapore etc.
For more information on this report or other global talent, cost and peer group benchmarking details, visit talentneuron.com