outsourcing lessons as learned and applied by agilent
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By Anita ManwaniTRANSCRIPT
Outsourcing Lessons as Learned and Applied by Agilent
Anita ManwaniVP & GM Global SourcingJan 20, 2004
Anita Manwani/IP Society Jan 2004
To revolutionize the way people live and work through technology
• AGENDA: Agilent’s Experience and Evolution with O-Sourcing– How we got to India recently– Barriers – Strategies
Communications
Agilent’s Focus and Purpose
Life Sciences and Chemical Analysis
Electronics
Anita Manwani/IP Society Jan 2004
Right Sourcing Barriers & Opportunities
• Distance• Perceived Infrastructure
Availability • IP Protection• Political Stability• Control • Requires significant
investment in transitions• Lack of local management
talent • ……..
Time
Low
High
The O-Shoring Maturity Curve
Anita Manwani/IP Society Jan 2004
Software - The India AdvantageIndia is emerging as the preferred global destination for offshore software development and remote business processing due to a number of significant advantages, primarily availability of quality skills at lower costs
Low High
High
India
Ireland
China Mexico
Size indicates the quantity of the knowledge workers
Location AttractivenessInfrastructure
– Communications– Other basic
infrastructureCountry risks / FDI incentives
– Political environment– Attractive Incentives
Time Zone Attractiveness
People StrengthQualification/ CapabilitiesCost DifferentialEnglish languageType of skillsWork Ethics
PhiliPines
S’poreHolland
Mature western Judicial system
IP Protection Laws
Favorable labor laws
Capitalist work ethic
Highly qualified and mobile english speaking professionals
Mature management talent
Breadth and scalability of services
Source: Accenture
Anita Manwani/IP Society Jan 2004
Parts ListLow vol./HighVariance Print
Maintenance Legacy AppsOracle ERP MaintenanceIT Online Support/Help DeskRemote Data CentersApplication IntegrationWeb Content Management
Vendor PaymentsAccounts ReceivablesFixed AssetsCash Acct, SBACollections
CSGLSCAEPSGATGSPG
Print/Data Entry
IT Support
Accounting
SupportCall Centers
Professional SvcsTraining
Agilent’s Right Sourcing Strategy in India
Agilent Technologies International Pvt. Ltd.
Wholly owned entityControlled CostsInfrastructure for expansionNov 1 2001 - Operation
OSS Solutions Svs integEPSG - GSM services
Hardware RefurbishmentsEngineering SupportFinancial ServicesField Support
Resource from strategic partners and permanent employees in India
Hybrid Sourcing Model
Owned Outsourcing
Opportunitie
s
Build it and they”ll come
Rely on local talent and develop local senior managers
EngineeringDesignsS/W Dev.
R&D Centers
Anita Manwani/IP Society Jan 2004
As we looked for hubs for our financial services….
Objective: Evaluate merits of alternative sites for Agilent’s global financial hub and recommend optimal geographic location
• Ireland • Japan
CHINA INDIA MALAYSIA
• Belgium
• India • Germany• China
• Singapore• US • Malays
ia
• Spain• UK
Political/ Macroeconomic Environment
Economic Impact
Legal Climate
HR/Labor
CriteriaConsidere
d
Anita Manwani/IP Society Jan 2004
TRIPS (Trade-Related Aspects of Intellectual Property Rights)
• India is a signatory to the TRIPS Agreement – complies with most of the provisions.
• TRIPS Agreement deals with: -
– Copyright and related rights
– Patents
– Trademarks
– Geographical Indications
– Industrial Designs
• India led the developing countries’perspective during negotiations under the WTO round
Anita Manwani/IP Society Jan 2004
India’s Legal Framework
Patents:The Patents Act 1970 as amended in March, 1999;
Patents Amendment Act 2002
Design: Design Act 1911
Trademarks:Trademarks Act 1991 effective 9-15-2003
Copyright:The Copyright Act, 1957 amended in 1983,1984, 1992,1994 and 1999
Geographical Indications:The Geographical Indication of Goods (Registration and Protection) Act 1999.
Trade Secrets:subject matter of contract
Anita Manwani/IP Society Jan 2004
Industrial Designs…• Generally, industrial design protection is limited to the
country in which protection is granted.
• Under the Hague Agreement Concerning the International
Deposit of Industrial Designs, a WIPO-administered treaty, a
procedure for an international registration is offered.
– An applicant can file a single international deposit
either with WIPO or the national office of a country
which is party to the treaty. The design will then be
protected in as many member countries of the treaty
as the applicant wishes.
Anita Manwani/IP Society Jan 2004
Trade Secrets…
• Confidential business information which provides an
enterprise a competitive edge may be considered a trade
secret.
• Include sales methods, distribution methods, consumer
profiles, advertising strategies, lists of suppliers and
clients, and manufacturing processes.
Anita Manwani/IP Society Jan 2004
Trade Secrets…• Some conditions for the information to be considered a
trade secret (these conditions vary from country to country, some general standards exist which are referred to in Art. 39 of the TRIPS Agreement):
– The information must be secret (i.e. it is not generally known among, or readily accessible to, circles that normally deal with the kind of information in question).
– It must have commercial value.
– It must have been subject to reasonable steps by the rightful holder of the information to keep it secret (e.g., through confidentiality agreements).
Anita Manwani/IP Society Jan 2004
Parts ListLow vol./HighVariance Print
Maintenance Legacy AppsOracle ERP MaintenanceIT Online Support/Help DeskRemote Data CentersApplication IntegrationWeb Content Management
Vendor PaymentsAccounts ReceivablesFixed AssetsCash Acct, SBACollections
CSGLSCAEPSGATGSPG
Print/Data Entry
IT Support
Accounting
SupportCall Centers
Professional SvcsTraining
Agilent’s Right Sourcing Strategy in IndiaAgilent Technologies International Pvt. Ltd.
>800 professionals Capacity extended to 1500
OSS Solutions Svs integEPSG - GSM services
Hardware RefurbishmentsEngineering SupportFinancial ServicesField Support
Resource from strategic partners and permanent employees in India
Hybrid Sourcing Model
Partners work at our sites
Explicit IP ownership & SLA management clauses
Owned OutsourcingIncreasing BPO R&D
EngineeringDesignsS/W Dev.
R&D Centers
Global Trade & Logistics Hub
R&D for Communication Solns
RF Instruments
Anita Manwani/IP Society Jan 2004
Product and solutions development at ATI
Agilent Engineering Services providing direct material support.
High Frequency circuit design tools development
Development and support for Agilent VEE
Wireline and wireless OSS Solutions development
GUI and other software components for Logic Analyzers, High Frequency Oscilloscopes and Precision measurement systems.
User interface and data analysis tools for the SOC tester
Standards based IP development and ASIC design.
Driver development and support.
Interoperability testing. Standards based IP development and ASIC design.
Driver development and support.
Interoperability testing.
Anita Manwani/IP Society Jan 2004
How we protect our information
• Redundant Networks/Telecom infrastructure – Fully integrated into, and providing full access to,
Agilent data & voice network, sytems and applications– Sophisticated monitoring for IP protection
• Contracts specifically targeted to retain IP ownership• No IP violations to date (too early…)• Annual web renewal of employee/manager Standards of
Business Conduct• R&D is owned outsourcing model • Third party outsourcing primarily at our own facilities
Anita Manwani/IP Society Jan 2004
Happy Employees – loyal employees!Employee engagement program called ‘Let’s Tango!’
‘Special Friends’ Program
‘Brain Dancing’ Lets Learn Together
HR Buddies
‘Special Friends’ Program
Harvard ManageMentor®