Siemens AG: Global Development Strategy
• What were the major causes of the problems with the NetManager project? (I’m not looking for a list of points made in the case; I’m looking for you to step back to a higher level and analyze why these problems occurred.)

The problems experienced by the NetManager project appear to be symptoms of integration vs. responsiveness issue within Siemens AG. As a transnational company, Siemens faces strong pressure to globally integrate its operations, and be responsive to the needs of their offices and customer’s needs. The main problem with NetManager was that it had mushroomed in size and strategic importance. This was the result of keeping up with the rapidly changing technological demands, and
• What role should Bangalore play in Siemens in the future?

Siemens should remain as committed as possible to their Indian Regional Development Center. In the grand scheme of their Global Development Strategy, it is a must to have a presence in the SIlicon Valley of India, which serves as a foothold to the rest of the Asia and Pacific Region. Their offices in Bangalore hold much value. For example, India holds a much larger labor pool for talented programmers, while still being relatively cheaper than American and European counterparts. This pool of talented programmers serves as a strong source of advantage in an industry that requires innovation and intelligence. However, there are a number of problems such as a high employee attrition rate, coordination costs, as well as global integration issues.

Despite these challenges, Siemens should make it a priority to rise up the ranks of prestigious employers in the region. Doing so, would address a number of India-specific issues including turnover rate, motivation, and global integration. Giving the Indian RDC the autonomy and increased competence they have been asking for would bring them closer to these ends. Independence and more stimulating projects would retain employees for longer; provide the proper motivation, while granting enough flexibility to drive innovation. More autonomy and greater responsibility would establish a greater need for integration