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Indian design firms prefer time, material model

Posted: 26 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:India Semiconductor Association? design firms? design services? K.C. Krishnadas?

Most independent semiconductor design firms in India have adopted the time and material-based model allocating specific tasks to be carried out within set time lines, according to recent data from the India Semiconductor Association (ISA).

The study concludes the capabilities needed to execute client projects using this model are not difficult to acquire. "The entry and exit barriers are low in this business model. Start-ups can easily accommodate this model. Such companies generally undertake sub-system designs, which are based on the client's specifications," ISA said.

However, India's large independent design service companies do not use the time and material-based model, opting instead for a fixed price model. Here, the design firm provides an end-to-end solution based on its in-house proprietary IP.

"These companies need to build capability in terms of skilled workforce and advanced infrastructure to handle activities across the VLSI design value chain," the study said. "A company needs to build a long track record of efficient service delivery in order to operate with a fixed price model."

- K.C. Krishnadas
EE Times




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