The Development Center at Corporate Technology (CT DC) is the Siemens Sectors’ Number 1 software development partner for product development.
Gerd Höfner has been head of the Corporate Development Center India since 2009, since April 1rst 2012 he is leading CT DC globally.
CT DC has been very successful since it was formed five years ago. We’ve grown from 2,800 to more than 4,500 employees at a cumulative annual growth rate of over 17 percent. In addition to the growth in team size, the scope of our engagement has also grown substantially. In some cases, today we’re in charge of the entire process, from determining requirements to delivering the completed component. One important aspect of our new strategy is to be perceived as One DC, by establishing the Development Center as a unit in which we effectively cooperate across regional and organizational boundaries.
We want to position ourselves as a provider of comprehensive development of products and systems for the Siemens Business Units. In the future we’ll focus on development services that cover the entire product lifecycle management process – from concept to finished solution. Software development will form the core of our activities. But we also intend to expand our portfolio by augmenting our hardware engineering activities and entering into the field of engineering services. The Siemens Business Units are acting globally and they need development partners which are represented globally. With locations in Central and East Europe we’re already well placed for nearshoring, with locations in India and China for offshoring.
Our mission is to make Siemens more competitive by offering high-quality development services across the entire product life cycle, with world-class skills and an optimum cost position. That means that we establish product development teams at cost-efficient sites, tailored to the needs of the individual Business Unit we partner. By consolidating teams from different Business Units at one location, we gain the advantage of size and the diversity of our competencies. We can establish an environment that an individual Business Unit would not be able to readily create by itself. For example, consider the topic of training: In India, our 3,500 employees work for 26 Business Units from 14 Divisions. We’ve set up a training program for these employees to address the needs of a beginner in the field to an expert with many years of professional experience. The program is unique, and we’re currently discussing with Siemens Learning Campus how to roll it out across the company.
The combination of our global position, our skills in technology fields of the Sectors, and our proximity to our partners gives us a lead over competitors both in-house and outside. We are unmatched in our ability to ramp-up teams quickly while still maintaining high quality. In addition, we work as a cost center. So our cost position is at least as good as that of the Business Units in a comparable environment – and consolidating the activities makes it even better. Finally, we’re 100 percent Siemens. All the expertise and experience our team members acquire, all the ideas they generate, belong exclusively to Siemens. Moreover, as a global in-house center, we attach great value in partnering with our colleagues in the Business Units. Our teams identify just as much with our Business Unit partners’ products and systems as their own employees do. That makes us unique.
In the medium term it may actually mean more business for us. I know that may sound paradoxical, but let’s take a closer look at the situation: It’s true that R&D budgets are being cut, but the same output will be expected. You can only do that with an optimized cost position. And we’re the ideal partner to achieve that, especially with our new setup.
Two things. First, the diversity of our work. As I’ve already mentioned, we partner 26 Business Units across the different Sectors. Whether it's the Smart Grid, building management, automation systems, computer tomography, or traffic management systems – we contribute toward an incredibly large number of interesting products and solutions for our integrated technology corporation. And second, the people. Our employees and our management team and our colleagues in the Sectors all work together as partners. We have excellent employees, and we work globally in the most varied cultural environments. It’s a lot of fun being in that environment.
Absolutely. I’m convinced that in an organization that is focused on developing products, there’s really just one relevant asset – our employees. They’re the foundation for our success. I’m very happy that I’ll be able to help continue the Development Center’s success story as part of this team.