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KOLKATA: ZTE, China's second
biggest telecom equipment
maker by revenue, is shutting
down its R&D operations in India
and sharply scaling down its
services business in the country to optimise costs amid reduced
gear sales, top executives aware
of the development told ET. The Chinese networks vendor, it
is learnt, has quietly reduced a majority of its near-60 strong research staff and
asked the few remaining team members, earlier
on the company's rolls, to opt for contract
service. The sharp reduction was effected after
ZTE India recently merged its R&D set-up in
Bangalore with its Indian Engineering & Service Centre (IESC), which offers engineering support
services for multiple telecom projects. But the impact on the company's services
business is likely to be even more severe than
R&D as contracts dry up amid reduced networks
gear spending by mobile phone companies. Five
senior executives in the rank of vice president to
project director in the services and enterprise sales divisions have put in their papers last
month. They include Dinesh Sharma and Shabbir
Ahmed -- both key members of ZTE's team
managing Bharti Airtel's LTE networks -- and
Ashish Vaishya, a director and member of the
services vertical managing BSNL's cell networks. Rajneesh Sharma, who was one of the
seniormost executives in charge of PSU and
enterprise sales, has also quit last month,
executives who declined to be named said. The
latest to leave is Arvind Rangnekar, who was
project director in the services division, they added. In a clear indication of the shape of things to
come, ZTE has also asked about 100 of its 180-
odd Chinese expats in its Indian arm to relocate
to China and other global markets where the
company has a presence. These expats were
primarily involved in the engineering services and solutions business in India. "The move is
aimed at cutting down ZTE India's expat-related
outflows as part of a drastic cost-optimisation
exercise," said an executive aware of matters. ZTE India did not respond to ET's specific queries
on the winding up of its R&D operations, the
spate of top level exits or the mass relocation of
expat Chinese executives. But executives familiar with the matter claim the
latest developments have been triggered by an
ongoing management rejig following the recent
change in ZTE's India leadership team with ex-
services business head Xu Dejun replacing Cui
Liangjun as the new chief executive.
http://www.timesofindia.com/tech/te...-operations-in-India/articleshow/18345449.cms
biggest telecom equipment
maker by revenue, is shutting
down its R&D operations in India
and sharply scaling down its
services business in the country to optimise costs amid reduced
gear sales, top executives aware
of the development told ET. The Chinese networks vendor, it
is learnt, has quietly reduced a majority of its near-60 strong research staff and
asked the few remaining team members, earlier
on the company's rolls, to opt for contract
service. The sharp reduction was effected after
ZTE India recently merged its R&D set-up in
Bangalore with its Indian Engineering & Service Centre (IESC), which offers engineering support
services for multiple telecom projects. But the impact on the company's services
business is likely to be even more severe than
R&D as contracts dry up amid reduced networks
gear spending by mobile phone companies. Five
senior executives in the rank of vice president to
project director in the services and enterprise sales divisions have put in their papers last
month. They include Dinesh Sharma and Shabbir
Ahmed -- both key members of ZTE's team
managing Bharti Airtel's LTE networks -- and
Ashish Vaishya, a director and member of the
services vertical managing BSNL's cell networks. Rajneesh Sharma, who was one of the
seniormost executives in charge of PSU and
enterprise sales, has also quit last month,
executives who declined to be named said. The
latest to leave is Arvind Rangnekar, who was
project director in the services division, they added. In a clear indication of the shape of things to
come, ZTE has also asked about 100 of its 180-
odd Chinese expats in its Indian arm to relocate
to China and other global markets where the
company has a presence. These expats were
primarily involved in the engineering services and solutions business in India. "The move is
aimed at cutting down ZTE India's expat-related
outflows as part of a drastic cost-optimisation
exercise," said an executive aware of matters. ZTE India did not respond to ET's specific queries
on the winding up of its R&D operations, the
spate of top level exits or the mass relocation of
expat Chinese executives. But executives familiar with the matter claim the
latest developments have been triggered by an
ongoing management rejig following the recent
change in ZTE's India leadership team with ex-
services business head Xu Dejun replacing Cui
Liangjun as the new chief executive.
http://www.timesofindia.com/tech/te...-operations-in-India/articleshow/18345449.cms
