Since 2006 the central cabinet had given a kind of green light to various user ministries to pursue the so called "Offset Policy" in major procurements the user departments are making.The current proposal stands at the !00 M$ or 200 M$ thresholds for these offsets to get triggered.This actually leads to offsetting of 30% of procurements through local companies,or locally created companies by MNCs for offsetting the total contract outgo.In bigger cases the threshold can be as much as 50% contract value.
To coordinate in a systematic manner across different user ministries/sectors a National Offset Authority is chaired at Cabinet Secretary Level.Today mainly the Defence Ministry are seizing the opportunity because of large scale/Big ticket projects procurement.Total offset pie available to cater to Defense itself is estimated to be worth around Rs 20000Cr!
This is where opportunity,a creative one can come for T&M companies.As the local procurement will consist of 3rdparty hardware,3rd party software,services and program management,independent Engineering Services and lot of jigs,fixtures,tools and testers,the whole gamut can be managed by T&M Services banner easily.This will require astute sales and business planning,local companies creation and motivating small,niche hitech companies to come to India and get plugged in with this huge,sustainable and game changing one for T&M industry!
Designing a business model for different high technology sectors will be very involved process.Depending upon resources of information,taxonomy,databases,bills of materials and global/local pricing on products and services these models will have to be tweaked.Many of the processes of procurement are getting eDriven and therefore they can be very cost efficient and suitable for Governance Platform too.T&M industry more particularly T&M services will benefit.M&A of various main technology companies and therefore attendant T&M companies will benefit by this opportunity.We need to see how it plays out and how we respond in an enterprising manner!
Tuesday, April 10, 2012
Tuesday, April 3, 2012
T&M Industry in India:FY13 Drivers for the Customers
The FY 13 has started with some mixed feelings and hangup of policy paralysis and balance sheet constraints for the Government.The overhang of policy retrospective for tax calculation on Capital Gains is there,with deficit on balance of payment widening.Rupee is flirting around 51 to a Dollar.T&M demands naturally is not auguring well because all the major purchases need to be imported.In such a scenario the different sectors using T&M are stacked up as follows:
Defense: The controversy and major scandals reported in the press recently will have its contingent effect on T&M purchases in the three wings of services.SMT/STE products and tools in EME TG trials will be slightly delayed but tendered purchases will happen as in the pipeline.Likewise the field purchases through tenders of DGS&D will happen as planned.
Telecom: The major driver in the operator sement will be the LTE.The TDD version is automatically decided per the band alloted and the choice for adopting International standards.Many vendors have done the PoC with major operators and initial orders for LTE infrastructure are trickling in.So the deployment T&M either directly,or through lease rental will happen.Even though fizz may not be there! Likewise major fiberisation project will go through.
Research & Development/Education sector: This will show a big boost with some major T&M purchases planned and under discussion at DGS&D and local Demand Officers level.The good part is that the demand will be higher than last year,more evenly distributed and geographically balanced.Perhaps North India overall will pip to the post when it comes at the year end.South and West will not be brighter this year!
So, Let us welcome the year fingers crossed.Hope is high but a couple of Government announcement positively could boost sentiments.
Defense: The controversy and major scandals reported in the press recently will have its contingent effect on T&M purchases in the three wings of services.SMT/STE products and tools in EME TG trials will be slightly delayed but tendered purchases will happen as in the pipeline.Likewise the field purchases through tenders of DGS&D will happen as planned.
Telecom: The major driver in the operator sement will be the LTE.The TDD version is automatically decided per the band alloted and the choice for adopting International standards.Many vendors have done the PoC with major operators and initial orders for LTE infrastructure are trickling in.So the deployment T&M either directly,or through lease rental will happen.Even though fizz may not be there! Likewise major fiberisation project will go through.
Research & Development/Education sector: This will show a big boost with some major T&M purchases planned and under discussion at DGS&D and local Demand Officers level.The good part is that the demand will be higher than last year,more evenly distributed and geographically balanced.Perhaps North India overall will pip to the post when it comes at the year end.South and West will not be brighter this year!
So, Let us welcome the year fingers crossed.Hope is high but a couple of Government announcement positively could boost sentiments.
Wednesday, March 28, 2012
T&M can help in innovating Products!
Usually any industry involved with high technologies goes through the Product,Services and Product cycle.The cycle really represents the business attributes as the market matures from startup to mainstream and then fades off to get a replacement/substitute product.This cycle is also influenced by the disruptive technologies and inventions.In such times whole industry goes thru many changes in market place making Business Models turn on its heads.
One industry which keeps the innovation engine firing is the T&M products and services which helps churn out new products faster and accelerates time To Market TTM.T&M industry oftentimes defines new products and aids in design to form basis for "testability-design relationship".The Capex needed for designing these innovative products impacts these designs and vice-versa the testers cost etc gets raised per new design requirements.
India is experiencing this product innovation startup activity through various research organisations.Traditionally the CSIR and Defense R&D labs have contributed to these local IP creation.Now more than 800 MNCs are leveraging the local manpower infrastructure to design locally created products and services architechture.All these organisations are exploiting power of testing platforms in these diverse applications.The testers in these organisations have to test designs for "Conformance", Uniqueness of measurement,Accuracy and Quality.T&M here plays a crucial role in this regard.India hopes to create lot of local designs with new age T&M coming to its aid.
One industry which keeps the innovation engine firing is the T&M products and services which helps churn out new products faster and accelerates time To Market TTM.T&M industry oftentimes defines new products and aids in design to form basis for "testability-design relationship".The Capex needed for designing these innovative products impacts these designs and vice-versa the testers cost etc gets raised per new design requirements.
India is experiencing this product innovation startup activity through various research organisations.Traditionally the CSIR and Defense R&D labs have contributed to these local IP creation.Now more than 800 MNCs are leveraging the local manpower infrastructure to design locally created products and services architechture.All these organisations are exploiting power of testing platforms in these diverse applications.The testers in these organisations have to test designs for "Conformance", Uniqueness of measurement,Accuracy and Quality.T&M here plays a crucial role in this regard.India hopes to create lot of local designs with new age T&M coming to its aid.
Monday, March 5, 2012
T&M: Test Challenges in Embedded Chips for Telecom Devices
This current decade is facing proliferation of faster Devices and multi functional implementation on chips.The various functions are being offered by the same Mobile Phones simultaneously.It is a camera,Radio,Social networking platform,Video streaming device besides the basic phone!This can all happen if the embedded chips are having complex architecture on the same Silicon.And before this can be realised it needs to be passing thru Testing/Verification. How and whether we have the right testing approach?
Testing of these complex ICs is done more and more through Software Defined Test or SDT.So the idea is to separate as much as we can the hardware ecosystem of T&M from its Software.Since we want to achieve more and more from the same chip,we hit the physical limits defined by Moores Law (number of transistor doubling every Eighteen Months)the only way out being build the testability at every stage of design and manufacturing!
Since T&M technology has to be smarter and faster than chips under design,the testing challenge is met by NOT resorting to physical devices increase but resorting to use of Multi Core Processors and Programmable Gate arrays,or FPGA.This allows us to use the same IP generated (during Design Stages) to leverage in Manufacturing Testing,concurrently.Separation of hardware and software defined test in T&M is great enabler to design compact multifunctional chips and cheaper Quality and Multifunctional devices: Smartphones,Tablets et al.We can dream of having a Smartphone in less than $50, for instance!
Software defined test ( SDT) is driving these designs of new age smart chips and devices made with them.T&M Services are as usual getting challenged by the user and in turn leveraging new architectures to produce and test them in turn! Interesting Osmosi effect at work!
Testing of these complex ICs is done more and more through Software Defined Test or SDT.So the idea is to separate as much as we can the hardware ecosystem of T&M from its Software.Since we want to achieve more and more from the same chip,we hit the physical limits defined by Moores Law (number of transistor doubling every Eighteen Months)the only way out being build the testability at every stage of design and manufacturing!
Since T&M technology has to be smarter and faster than chips under design,the testing challenge is met by NOT resorting to physical devices increase but resorting to use of Multi Core Processors and Programmable Gate arrays,or FPGA.This allows us to use the same IP generated (during Design Stages) to leverage in Manufacturing Testing,concurrently.Separation of hardware and software defined test in T&M is great enabler to design compact multifunctional chips and cheaper Quality and Multifunctional devices: Smartphones,Tablets et al.We can dream of having a Smartphone in less than $50, for instance!
Software defined test ( SDT) is driving these designs of new age smart chips and devices made with them.T&M Services are as usual getting challenged by the user and in turn leveraging new architectures to produce and test them in turn! Interesting Osmosi effect at work!
Friday, March 2, 2012
T&M Impact in India: Mobility,Money,Medicare & Manufacturing!
T&M in India can impact and be impacted likewise by its M factor! The way the mobility is getting accelerated in our lives the T&M industry can get but impacted by them.Featurephones are being replaced by Smartphones and people are getting online even in rural India as well.The traditional services from the drab postal department-the Money Order has potential to be totally replaced by MMT or Mobile Money Transfer.Same goes true for other public services : the Medicare including Maternity related.
All this actually requires cheaper Smartphones, and newer innovative local apps and mass customisations.Local or localised standards and conformance/performance testing by the cheaper testers and field testing etc by even more inexpensive portables.Actually these designs of chips,hardwares have to come from India and these should be manufactured locally to really leverage the huge poential and latent demands.So another M factor Manufacturing comes into picture.Here repeatbility of measurement,productivity,quick test time and Money saving is important!
Where will all these inexpensive,portable,handheld,palmtop testers will get consumed.The Media industry will be one area where field testers should be absorbed in large numbers.My study on the demand elasticity,numbers of instruments and channels of distribution indicates that we CAN have a solid indigeneous powerhouse of an industry selling these testers in India.By way of illustration, a handheld portable Spectrum Analyser for Rs 5000 (up to L Band) and Rs 10000 (upto S band) at an annual demand of 50,000 qty is very feasible! We can extrapolate other instruments like Signal Generator, Power Meter and Signal Generators etc accordingly.
T&M Professionals and Entrepreneurs ! Do you see the opportunity here? If you feel No it is a pipe dream,please shoot a mail or phone in at +919810101238 T&M should be there in your entrepreneurial vision. Nano car or Chhotukool you remember!
All this actually requires cheaper Smartphones, and newer innovative local apps and mass customisations.Local or localised standards and conformance/performance testing by the cheaper testers and field testing etc by even more inexpensive portables.Actually these designs of chips,hardwares have to come from India and these should be manufactured locally to really leverage the huge poential and latent demands.So another M factor Manufacturing comes into picture.Here repeatbility of measurement,productivity,quick test time and Money saving is important!
Where will all these inexpensive,portable,handheld,palmtop testers will get consumed.The Media industry will be one area where field testers should be absorbed in large numbers.My study on the demand elasticity,numbers of instruments and channels of distribution indicates that we CAN have a solid indigeneous powerhouse of an industry selling these testers in India.By way of illustration, a handheld portable Spectrum Analyser for Rs 5000 (up to L Band) and Rs 10000 (upto S band) at an annual demand of 50,000 qty is very feasible! We can extrapolate other instruments like Signal Generator, Power Meter and Signal Generators etc accordingly.
T&M Professionals and Entrepreneurs ! Do you see the opportunity here? If you feel No it is a pipe dream,please shoot a mail or phone in at +919810101238 T&M should be there in your entrepreneurial vision. Nano car or Chhotukool you remember!
Wednesday, February 29, 2012
T&M helping the new age Smartphone and "cell"
The onslaught of smaller femtocells and newer smartphones are putting design for testability and manufacturability challenges to T&M companies.No doubt the T&M OEMs are doing their best to show off achievement at Barcelona show as I write this blog.While Delhi streets were deserted due to strike protesting inflation and labour policy.In the Spanish town though there was quiet,I believe,and streets were at their usual charm.
The femtocell is just "cell" and Cisco is wanting to pile on this bandwagon and hype is created for LTE with NEMs claiming their wins in Europe and elsewhere.The T&M majors though are steadily advancing,few off course with tongue in cheek!
I remain quite confident that in 2012 we will find one vendor clearly outdistancing others on LTE testing.Particularly the TDD piece will come from behind and take the winners Crown.Revenuewise though among the Billionaire Club,we have new entry with NI creeping into the area of RF testing and Labview leading the charge.Voice over LTE and handoff testing will find new niches.Well optimism remains the winner!
The femtocell is just "cell" and Cisco is wanting to pile on this bandwagon and hype is created for LTE with NEMs claiming their wins in Europe and elsewhere.The T&M majors though are steadily advancing,few off course with tongue in cheek!
I remain quite confident that in 2012 we will find one vendor clearly outdistancing others on LTE testing.Particularly the TDD piece will come from behind and take the winners Crown.Revenuewise though among the Billionaire Club,we have new entry with NI creeping into the area of RF testing and Labview leading the charge.Voice over LTE and handoff testing will find new niches.Well optimism remains the winner!
Saturday, February 4, 2012
T&M market in India is looking for Telecom breakthru!
T&M market has seen big comedown since mid2008,and the trough of 2009 still haunts it.The policy debacles on the telecom front have serially created further complications.Now it looks like there is some hope that the recovery on policy front should happen shortly.The NTP can be officially announced shortly where we should see some manufacturing related initiatives.On the rollout side the mother hen of the industry will be the Fiberisation project(with additional funding to Defense)and the LTE rollout.The LTE rollout should really trigger more downstream opportunities to new market adjacencies.
The LTE rollout will precede with certification,compliance and conformance test prospects to some vendors who have yet not come to India.Entrepreneurs will discover them across the Globe.Their expertise will be encashed by India version of LTE and the testing and upper layer tools and software will get sold for this market.We should see the applications right across the devices,networks and management systems.The system approvals will also require testing gears of Dollar heavy variety.I believe all this should add to the lifting of revenue toplines to T&M.
On portables,and the lower layers side the fiberisation project handled by the BSNL should give a fillip to this.ALL in all there is optimism in the air after quite a bit of despondency.
The LTE rollout will precede with certification,compliance and conformance test prospects to some vendors who have yet not come to India.Entrepreneurs will discover them across the Globe.Their expertise will be encashed by India version of LTE and the testing and upper layer tools and software will get sold for this market.We should see the applications right across the devices,networks and management systems.The system approvals will also require testing gears of Dollar heavy variety.I believe all this should add to the lifting of revenue toplines to T&M.
On portables,and the lower layers side the fiberisation project handled by the BSNL should give a fillip to this.ALL in all there is optimism in the air after quite a bit of despondency.
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