" In the global age of Information Technology, Research and Development is our key factor to competitiveness and growth. We promote a progressive and open environment at HFCL's Center for Excellence in Telecom Research & Development, to create top of the line products and solutions that will help us in maintaining the cutting edge", views Paul Berkowitz, Head of Strategic Planning.

From the very inception of HFCL, the top management has realized the importance of R&D and the potential of Indian Engineers. It has therefore provided full support for indigenous R&D activities. Even the first product of HFCL viz. 2GHz Digital Microwave Radio System was based upon indigenous development efforts albeit at an overseas location with full control over Intellectual Property Rights on the product. Most of the later products were also designed / developed indigenously. These efforts enabled HFCL to supply world class products to the domestic market at significantly lower prices compared to those prevailing in the world market thus fully vindicating the vision of the management. The company believes that R&D is an area of significant competitive advantage. The emphasis of company in this area has been more on development of products and solutions rather than on basic research.

Mr. Nahata, Group Chairman believes that core competence of the company will come from attaining manufacturing excellence where R&D has a central role to play. The importance of R&D highlighted in the vision statement, is not just a statement for the outside world, but has been translated into reality. The manufacturing has to be backed by a strong R&D since it is perceived that competition is not limited to other Indian companies but also to international companies and MNCs. The competitive advantage can be achieved only by providing customers a better and customized product at a lower cost.

With a view to continuous improvements R&D has taken certain new initiatives recently. It has now focused its attention on the products in the telecom 'Access arena'. The Design and Development Team at R&D division has successfully completed the development of Optical Multi Service Access Network. This product can cater to an increased subscriber density by reducing the necessity of laying copper all the way from the exchange to the subscriber premises by making Optical Rings and access nodes reach the subscriber clusters. The division is also developing a broadband interface on the same platform to provide value added broadband data services. Depending on the emerging demand profile of the users, the product is capable of seamlessly migrating from existing voice traffic to data traffic. The entire access network is under the supervision and control of WEB/SNMP based NMS/EMS.

In the emerging Next Generation Networks based on Packet Technologies, the division has focused its attention on providing solutions and convergent applications to the carriers by doing value addition. The Systems Integration group maintains relationships with world-class manufacturers for network architecture design. The division sees a tremendous opportunity here and our advantage lies in deep 'Domain-knowledge', best in class 'Vendor-Selection' and 3R(Rapid, Reliable and Responsible) solution to customers. Our USP is trained manpower pool, knowledge of telecom networks and understanding of carrier requirements.
The division is also engaged in outsourcing product development not critical to its goals but is otherwise required for completeness. However all IPRs are property of the division.

The Product Management group associated with the division ensures that the products developed by R& D are in tune with customer needs, have significant revenue potential, are equal or superior to those from well established MNCs, and are based on state of art technology. This group gives timely feedback to R&D on features and functionality expected by potential customers for the products under development. This group is also responsible for preparing business case for new products. It is responsible for eliciting resource viability from various departments including finance department, and getting management approval before start of a new development activity. This group provides product marketing assistance to the Sales Team towards selling of products developed at R&D.

The division has taken initiative in terms of setting up a Validation Group in a 5000 square feet facility. This facility with a substantial investment shall validate products developed by design and development groups and carry out load and regression testing of the intended and unintended system functions. These are to be tracked and improved before the system is offered for evaluation to the customer. This facility will also serve as a platform to find a solution to the field problems by actually replicating field scenario in the lab. In addition it will provide a platform for continuous up-gradation on both firmware and hardware so that product costs are kept under control and features are improved with fast changing technology. Any customer specific solutions can be rigorously tested at this facility before being supplied to the customer.

The Division has a strong Engineering Department to provide support to Design and Development Teams for IT infrastructure, CAD, Packaging, Procurement, Product Engineering, Prototype and Pilot Production.

The division has invested heavily into providing test environment as well as software and hardware tools to assist in faster product development. The division is ISO 9001:2000 certified by Underwriter Laboratories and lays adequate emphasis on the quality management across all its functions.

The senior management of the company is drawn from best of the industries both nationally and internationally and having experiences in product development, project management, technologies, manufacturing practices, carrier and customer requirements, network requirements etc. It has a trained pool of technical manpower of more than 100 Engineers from best of the engineering institutions having expertise in various facets of technologies both in software and hardware.

The division has excellent HR policies in place to nurture and retain the talent and provides opportunities to members towards accomplishment of company's vision and goals. Appropriate reward and recognition systems crucial to a technical organization are institutionalized.

HFCL progressively intends to invest 10% of its turnover in R&D and expects 50% of its turnover to come from indigenously developed products in next three years. HFCL understands what real R&D is and is strengthening the same on a continual basis to improve its time to market of the products and solutions. New initiatives are in place in terms of recruiting the manpower in the emerging and new technology areas. It has recruited NRI professionals having rich working experience with telecom majors like Alcatel, Lucent who are instrumental in accelerating the development activities across all functions. The goal and the path to reach there is unambiguous. Any business proposition requires planning and adequate finances these becoming available; there is absolute certainty of HFCL becoming a more dominant player not only in the national but international arena.