Tuesday, September 30, 2003
The Intel India Development Center (IIDC), located in Bangalore, India, is Intel’s largest non-manufacturing site located outside the U.S. Since its opening in 1999, it’s not widely known how significant and how many activities are now performed at the IIDC.
Paul Otellini, Intel president and chief operating officer (COO), recently described the IIDC as a microcosm of Intel–a site that hosts multiple Intel business units. While most of the initial work performed at the IIDC supported enterprise software projects, a well-known forte in India, the work mix at the IIDC started to shift substantially in 2002 to support hardware projects when Intel’s Enterprise Platform Group (EPG) announced plans to establish a team to develop the IntelĀ® Xeon™ processor at the IIDC. This move laid the foundation for core Intel business groups to locate to the IIDC to perform core business activities there. All core Intel business groups now have a presence at the IIDC, including EPG, Mobile Platforms Group (MPG), Desktop Platforms Group (DPG), and the Intel Communications Group (ICG). Intel’s e-Business Group (eBG), its enterprise software group, also has a large presence at the IIDC.
It is important to note how Intel structured the relationship between IIDC-based groups and U.S.-based groups. Instead of an “outsourcer-outsourcee” relationship, each IIDC business unit is an extension of its respective parent group. This type of relationship has many of the following advantages:
Consolidated One-Business Plan: Allows Intel business units to develop one consolidated annual plan and then apply its worldwide resources to deliver on that plan.
Work Mix: The work mix at each site is similar to the overall work mix of that particular business unit. As a result, the issue of the remote site doing “maintenance” or “low-end” work goes away.