IT Outsourcing -The Cisco Way

8/6/2019 IT Outsourcing -The Cisco Way

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AgendaAgenda

Cisco in IndiaCisco in India

Cisco’s India PartnershipsCisco’s India PartnershipsCisco’s India Partnerships

Why India?Why India?

Learnings & Best PracticesLearnings & Best PracticesLearnings & Best Practices

Cisco’s Sourcing Model & StrategyCisco’s Sourcing Model & Strategy



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India OverviewLarge, Populous & Diverse Country

• Land Area – 1/3 of United States

• Population – 1 Billion

• 6 Cities over 3M (only 2 in US);5 over 4M (only 1 in US)

• 13 Official Languages; 1,700Dialects

• Religious Tolerance & Diversity• Currency – Rupee

New DelhiNew Delhi

Kolkata

MumbaiMumbai

BangaloreBangalore

HyderabadHyderabad

Chennai




India is Changing the WorldIndia is Changing the World

1. Growing Up – 8%; $800B

2. Farming it In – $36B; +28%

3. Striking it Rich – 27 Billionaires; 10 New

4. Consuming Conspicuously – 50M Passengers

5. Exporting Talent – 2M in US; Highest Income

6. Peopling the Planet – 1B7. Brewing Crisis – Emerging Country

1.1. Growing UpGrowing Up – – 8%; $800B

2.2. Farming it InFarming it In – – $36B; +28%

3.3. Striking it RichStriking it Rich – – 27 Billionaires; 10 New

4.4. Consuming ConspicuouslyConsuming Conspicuously – – 50M Passengers

5.5. Exporting TalentExporting Talent – – 2M in US; Highest Income

6.6. Peopling the PlanetPeopling the Planet – – 1B7.7. Brewing CrisisBrewing Crisis – – Emerging Country


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InnovativeCustomers

Large, SkilledEnglish-speaking

Talent

Culture ofTolerance, Diversity

& Partnership

Skilled Partnerswith GlobalCapabilities

Economic Growth—Top 5 Economy by2025

The World’sLargest Free Market

Leadership Focusedon EconomicDevelopment

Fastest GrowingYoung Population

Why India?

IndiaEpitomizes

the HumanNetwork



AgendaAgenda


Cisco’s India PartnershipsCisco’s India PartnershipsCisco’s India Partnerships





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Cisco in India

1996 – CiscoEstablished Indiapresence

before the busthappened

for the talent

Commencedoperations withpartner

relationshipsstayed on for cost& quality

Launched as Globalization Centre East

A fully ownedsubsidiary ofCisco SystemsInc.

7500+employees

(includingpartners)

$500M

Revenue



AgendaAgenda


Cisco’s India PartnershipsCisco’s India Partnerships






Cisco’s India Partners

http://www.wipro.com/newsroom/presskit/images/images.zip



Areas of work

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Product Engineering

IT Services

Customer Advocacy

BPO Services



AgendaAgenda





Cisco’s Sourcing Model & Strategy



Various Offshore Models

Contractor Modelmanage engineers from HQ

unrealistic due to time zone, culture differences, etc.

Fixed Bid Modelgive RFP, they provide milestone plan

monitor and pay based on milestones

doesn’t work because we constantly need to adjust plans due tonew information

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Cisco’s Offshore Model

Dedicated Development Center Modelengineers & projects managed by local managers

This is the Cisco preferred model




Cisco’s Offshore Strategy

Start with well-defined, stable projects to learn onthese can be small or very large

Start with projects that aren’t communication intensive

start-up phase requires a lot of communication in any case

And plan to move to “self-contained projects”




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Build relationships

“Communicate, Communicate, Communicate” Increase management touch time

Actively and constantly transmit Cisco culture

Ensure engineers feel:

like they work for YOU

part of the whole teamappreciated for their contributions

Learnings & Best Practices




Learnings & Best Practices

Have an independent offshore program office

Deliverables based projects more successful thanprojects based on individual contributions

Proactive staffing and training minimizes impact on

deliverables due to attrition

Incentivized CSAT programs help in checks andbalances

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Waves of Ownership

SustainingEngineering

Component

Ownership

SolutionOwnership

Innovation

Time

R e s p o

n s i b i l i t y




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Offshore:

can be fabulously successfulcan decrease your time to market

can increase the number of projects you can afford

will increase revenue & cash flow

will dramatically decrease your costs

will dramatically increase the talent pool you can draw on

But:

it requires conscious effort & planning

The last word




Q and A

IT Outsourcing -The Cisco Way

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