Confluence 2013

Accelerating Global

Innovation

6th March 2013

Hyatt Regency Santa Clara, CA

Zinnov LLC

No Part of this report may be quoted, circulated or reproduced for distribution without prior written approval from Zinnov.

Talent Outlook 2013 – Key Findings Of Zinnov’s Survey

January 2013

3 Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012

Organization Profile By Global Headcount

2%

2%

5% 5%

7%

7%

12%

21%

40%

Program Manager

Product Management

HR- Talent Acquisition

Consulting

Operations

Engineering

HR- Compensation

HR- Business Partner

HR-Generalists

3% 13%

63%

20% 0-100

101-1000

1001-10,000

More than 10,000

Organization Profile By Headquarter Location

5% 5% 5%

5%

75%

5% Japan

Ireland

France

UK

USA

Singapore

Organization Profile By Revenue (Million USD)

35%

15% 21%

29%

0-500

501-1000

1001-5000

5001 and above

11%

6%

9%

17%

29%

29%

Others

Internet

Storage

Telecom & Networking

Software

Semiconductors

Respondent Profile By Roles

Organization Profile By Verticals

HR and Technology Professionals from global Hi-Tech companies participated in the survey conducted by Zinnov

Key themes that emerged from the survey

4

2013 Is Going To Be The Year Of Skill And Talent Reconciliation

Growth In Low Cost Countries Led By China & India Is Expected To

Remain Constant

Skills Are Evolving And

New Age Skills That Did Not

Exist A Decade Back Are In

Demand

The Role Of HR In Organizations Will Become More Strategic

• Organizations are looking to expand/grow within US

• Focus on Tier 2 locations in the US is expected to increase in 2013

• Hiring for undertaking innovation related activities will be primarily in the US

• Marginal growth in China & India primarily due to cost and access to talent

• Operations in China is not on the priority list for most companies

• Organizations believe that 25% of their current talent will become redundant in next 3- 5 years

• User Experience, Analytics and Mobility are the top skills that companies require in the near future

• In 2013, there will be an increased focus on HR Analytics, Skill Set Assessment and Training

• Niche Skills Hiring is a key challenge for most organizations

Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012

1 2

4 3

Silicon Valley & other US Cities will be the primary innovation hubs for a majority of the companies followed by India and EMEA

5 Note: * An organization can expect innovation across multiple regions, hence total proportions is more than 100% Source : Zinnov Talent Neuron Location and Skills Survey Q42012

• In the coming years, Seattle, Maryland, Dallas, Boston are expected to emerge as innovation hubs

• India is expected to account for only 15 percent of the innovation/ innovation related activities • Brazil, Argentina, Costa Rica and Chile are expected to be the top innovation locations in the Latin

America region

7%

21%

26%

30%

36%

43%

50%

71%

Africa

APAC

Latim America

China

EMEA

India

Other USA cities

Silicon Valley

36%

18% 15%

10%

8%

8% 5%

1% Silicon Valley

Other USA cities

India

EMEA

China

Latin America

APAC

Africa

What percentage of your company’s innovation will come from the following regions in 2013?

70% of the organizations indicated that Silicon Valley will be their center of innovation in 2013

1

Over 54% of Innovation from US

6

About 75% of the companies indicated that they plan to increase their headcount across centers located in the US; outside of the US, India and Africa are the preferred locations

• Companies continue to focus on growth in Silicon Valley -

• 80 percent of the respondents indicated that their organization’s headcount is expected to increase the most in Silicon Valley compared to other locations

• 70 percent of the respondents expect their

organization’s headcount to increase in other US Cities

• The number of organizations with centers in Africa and Latin America is less. However, the expected increase in the headcount in these geographies is higher compared to China and APAC region

• China is the least preferred location for talent growth

By what percentage do you expect to increase headcount in the following regions in 2013?

4%

4%

5%

5%

9%

13%

18%

30%

0% 20% 40%

China

APAC

EMEA

Africa

Latin America

India

Other USA cities

Silicon Valley

Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012

2

Total number of organizations participating in the survey = 40 Source : Zinnov Talent Neuron Location and Skills Survey Q42012

53%

47%

Organizations Expecting aSkill Set Change in theFuture

Organizations Unsure ofSkill-Set Requirement inthe Future

2

4

5

11

18

75-100%

25-50%

50-75%

Not Sure

0-25%

Number ofOrganizations

What percentage of your future skills will differ from your current skills?

Exp

ecte

d C

han

ge in

Ski

ll-Se

t R

equ

irem

ent

Organizations future talent requirement to be different from current requirement

• Most organizations expect the key skill sets to differ by 25% in near the future

• Training, Focused Hiring, Workforce Planning, Skill-Set Measurement, Performance Monitoring are some of the areas that need to be strengthened within organizations in order to prepare for changing skill-set requirement

In the next 3-4 years, 40% of the organizations believe that about 1/4th of their current skill inventory will become redundant

3

7

Note: Analytics includes Big Data, Predictive Modeling, HR Analytics Source : Zinnov Talent Neuron Location and Skills Survey Q42012, Zinnov Talent Neuron Database

Engineering, Analytics, Mobility and Cloud are the top skills that companies require in the near future. In addition, companies are also emphasizing on developing soft skills

Skill Set 8 to 10 Years ago 2013

User Experience Design

Data Scientists

Mobile Application Development

Cloud Computing

Non Ex I stent

Extremely Low

Legend

Very High

Organizations believe that understanding skillbase/inventory of their talent is the key to the future

3

8

Note: Analytics includes Big Data, Predictive Modeling, HR Analytics Source : Zinnov Talent Neuron Location and Skills Survey Q42012, Zinnov Talent Neuron Database

Engineering, Analytics, Mobility and Cloud are the top skills that companies require in the near future. In addition, companies are also emphasizing on developing soft skills

50%

40%

32%

24%

17%

7%

20%

0%

20%

40%

60%

Platform EngineeringTechnologies

Analytics Mobility Cloud Computing Migration to NewTechnologies

Desktop/Servervirtualization

Others Skills

What will be the top 3 required skills in the near future for your organization?

Perc

enta

ge o

f C

om

pan

ies

• Attracting and retaining PhD holders in areas such as hardware design, statistics, automation is a key

challenge for organizations

• In the near future, organizations are expected to increase their focus on soft skill development across levels and functions. These skill sets include Leadership Development, Coordination, Communication, Customer Services, etc.

• About 24 percent of the companies indicated that Migration to New Technologies and Desktop/Server Virtualization are the key skills required in the near future

3

9

10 *Workforce Planning: Understanding staffing trends, resource allocation, forecasting etc, ~Skill-Set Assessment: Performance assessment, productivity measurement Source : Zinnov Talent Neuron Location and Skills Survey Q42012

Key Focus Areas for HR Departments in 2013

14%

14%

19%

20%

21%

21%

50%

High Volume Staffing

Workforce Planning*

Talent Retention

HR Analytics

Training

Skill Set Assessment~

Niche Skill Hiring

• Hiring for niche skills and skill set assessment continue to remain the key challenges for most organizations

• Over 50% of the organizations lack dedicated statistical or data analytics teams across HR departments.

• Dedicated statistical teams within HR departments can help in reducing various challenges across Skill-Set Assessment, Large Volume Data Analysis and Workforce Planning

• Over 50% of the organizations lack dedicated or shared teams that can undertake research on existing and potential future locations for the company

The survey indicates that hiring people with Niche Skills, Skill Set Assessment and HR Analytics will be the key focus areas for HR Departments in 2013

Per

cen

tage

of

Res

po

nd

ents

4

THANK YOU

4701 Patrick Henry Dr. Building 7 Santa Clara CA – 95054 Phone: +1-408-716-8432 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 Phone: +1-281-362-2773 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout 5th Block, Koramangala Bangalore – 560095 Phone: +91-80-41127925/6 11, First Floor, Paras Downtown Center, Golf Course Road, Sector 53, Gurgaon – 122002 Phone: +91-124- 4378211/13

info@zinnov.com

www.zinnov.com @Zinnov

11