Silicon Valley Trends in Offshoring

In a new study titled, “Offshoring — The Silicon Valley Trend,” research firm Zinnov analyzed the top 50 Silicon Valley companies to understand their Indian operations, ranging from captive setups to vendor relationships. For analysis, these companies were divided into three domains (software, hardware and conventional industries) based on their core competency.

The survey had several key findings:

  • 93% (14 out of 15) of the software companies in the list have development-related operations in India.
  • A majority (17 of 27) of the hardware companies have significant presence in India for R&D activities.
  • Bangalore is the preferred location for setting up captive centers or third-party vendor partnerships.
  • When compared to software and hardware companies, conventional companies don’t perceive India as a “to be destination.”

“While two thirds of these large software and hardware companies have their own captive centers in India, a majority of them also have significant vendor engagements that bring flexibility in size and expertise in non-core activities to the company,” said Anil Kumar, research associate for Zinnov.

“With more and more companies considering India as a lucrative destination for business and operations, an analysis of practices followed by these industry pioneers enables others to make smart decisions on offshoring” said Pari Natarajan, CEO of Zinnov.

“Offshoring — The Silicon Valley Trend” is an informal study on the offshoring practices of SV-50 companies. You can download it by registering here: