Moderators Marianne Granhoj, Kromann Reumert George Waggott, McMillan LLP IBA Washington September 19, 2016
Avik Biswas, Indus Law Raquel Florez, Freshfields Bruckhaus Deringer Alfredo Kupfer, Sanchez Devanny Eseverri Nicole Van Ranst, Marx Van Ranst Vermeersch & Partners
Computer Hardware IT Services & Consulting Software Communications Equipment Semiconductors
1. Fastest Growing U.S. Occupations: 2014-2024 488,500 new jobs / total 4.4 million workers 2. Wide range of new technologies and skills wipe out some jobs Robotic automation replacing lower skilled jobs 60% of Electrical & Electronics salaried workers in S.E. Asia at risk Technology enables re-shoring in manufacturing, textiles Production of physical goods moves closer to markets Sources: U.S. Bureau of Labor Statistics; ILO July 2016 - How Technology is Changing Jobs and Enterprises
India s technology generated US$143 billion in revenue during FY15 IT sector contribution to India s GDP rose to 9.5 % in FY15 from 1.2 % in FY98 India third among global start-up ecosystems with more than 4,200 start-ups 2015 rankings (exit values and growth in venture funding): Bangalore second only to Berlin in the Global Startup Ecosystem Growth Index
India is largest partner destination globally for the IT industry - about 67 per cent of the market. 2015-2016: The IT industry grew at a Compound Annual Growth Rate (CAGR) of 8.3 per cent Microsoft Ventures: incubate 500 startups Intel: investing $62 million in InternetOfThings Biggest advantage: Availability of high technical skillsets, proficiency of English and a get it done business culture
20 th Century Concepts: EITHER Worker OR Contractor New Concepts A Third Category?
CORPORATE AND STRUCTURING ISSUES Who is the client? Which entities are potential employers? Tax and regulatory: Where are you carrying on? Financing: Any concerns with raising money?
TRabajador Autonomo Economicamente DEpendiente 1.Independent contractor 2.Regularly working for specific client 3.At least 75% income from client 4.Stipulated rules for severance 5.Disputes dealt with in employment tribunal
Context Driving Sectoral Changes 1.NAFTA: cross-border has trade tripled since 1994 2.Selected Winners: increased foreign direct investment (now $100 billion) in sectors such as automotive and technology 3.Legal Change: Broad government reforms
Sixth largest in world After China/US/Japan/South Korea/Taiwan Dominated by OEM assembly Smartphones TV capital of the world Third largest computer manufacturer
Consumer goods made near markets Large domestic market ¼ of US consumer goods built in Mexico About 1 billion people in Americas
Working Time Flexibility and Retention IP and IT Rights Termination
The HR/Corporate context Who is the client? Options for all my friends Unique tax rules Challenges upon termination
Sand Hill Road s Wish List 1.Productive Skilled Labour 2.Enforceable Legal Rules 3.Easy to hire and fire 4.No class actions 5.Accomplished advisors
Moving Up the Global Competitiveness Table 1.Labo(u)r market efficiency 2.Technologicial readiness 3.Innovation Concrete Reforms 1.Anti-corruption regime 2.Streamlined labor law 3.Pro-startup tax and corporate reforms
What Makes for Thriving Startups? How does law impact business decisions?
What s Next?
Moderators Marianne Granhoj, Kromann Reumert George Waggott, McMillan LLP IBA Washington September 19, 2016