Outsourcing Lessons as
Learned and Applied by Agilent

Anita Manwani
VP & GM Global Sourcing
Jan 20, 2004
Agilent’s Focus and Purpose

                                                  Life Sciences and
                  Communi...
Right Sourcing Barriers &
  • Distance
                Opportunities
  • Perceived Infrastructure
    Availability        ...
Software - The India Advantage
India is emerging as the preferred global destination for offshore
software development and...
Agilent’s Right Sourcing Strategy in
  Agilent Technologies
                       India Wholly owned entity
             ...
As we looked for hubs for our
                 financial services….
          • Belgiu • India• Spain UK • Singap • Germa
...
TRIPS (Trade-Related Aspects of Intellectual Property Rights)
 • India is a signatory to the TRIPS Agreement
   – complies...
India’s Legal Framework
  Patents:The Patents Act
  1970 as amended in March, 1999;
  Patents Amendment Act 2002


       ...
Industrial Designs…
     • Generally, industrial design protection is limited to the
        country in which protection i...
Trade Secrets…
  • Confidential business information which provides an

      enterprise a competitive edge may be conside...
Trade Secrets…
• Some conditions for the information to be considered a
   trade secret (these conditions vary from countr...
Agilent’s Right Sourcing Strategy in India
                                                                               ...
Product and solutions development
                at ATI
                  Agilent Engineering
                  Services ...
How we protect our information




• Redundant Networks/Telecom infrastructure
     – Fully integrated into, and providing...
Happy Employees – loyal employees!
Employee engagement program called ‘Let’s Tango!’



‘Special Friends’ Program
        ...
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Outsourcing Lessons as Learned and Applied by Agilent

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Outsourcing Lessons as Learned and Applied by Agilent

  1. 1. Outsourcing Lessons as Learned and Applied by Agilent Anita Manwani VP & GM Global Sourcing Jan 20, 2004
  2. 2. Agilent’s Focus and Purpose Life Sciences and Communications Chemical Analysis Electronics 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 Anita Manwani/IP Society Jan 2004
  3. 3. Right Sourcing Barriers & • Distance Opportunities • Perceived Infrastructure Availability The O-Shoring Maturity Curve • IP Protection • Political Stability • Control High • Requires significant investment in transitions • Lack of local management talent • …….. Low Time Anita Manwani/IP Society Jan 2004
  4. 4. Software - The India Advantage India 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 High Ireland Mature western S’pore Location Attractiveness Holland Judicial system Infrastructure IP Protection Laws – Communications – Other basic India Favorable labor laws infrastructure Phili Country risks / FDI Pines Capitalist work ethic Mexico incentives China – Political environment Highly qualified and – Attractive Incentives mobile english Time Zone Attractiveness speaking professionals Low People Strength High Qualification/ Capabilities Mature management Cost Differential talent English language Size indicates the quantity of the Type of skills Breadth and knowledge workers Work Ethics scalability of services Source: Accenture Anita Manwani/IP Society Jan 2004
  5. 5. Agilent’s Right Sourcing Strategy in Agilent Technologies India Wholly owned entity Controlled Costs International Pvt. Ltd. Infrastructure for expansion Engineering Designs Nov 1 2001 - OperationS/W Dev. R&D Centers Resource from strategic partners and permanent Professional Svcs CSG Training LSCA employees in India EPSG ATG Hybrid Sourcing Model OSS Solutions Support Svs integ SPG Call Centers EPSG - GSM Owned Outsourcing services Hardware Refurbishments Accounting Engineering Support Financial Services Field Support Vendor Payments IT Support Accounts Receivables ti es ni Fixed Assets Cash Acct, SBA Maintenance Legacy Apps Collections rt u po Print/Data Entry Oracle ERP Maintenance Op IT Online Support/Help Desk Build it and they”ll come Remote Data Centers Rely on local talent and Parts List Application Integration Low vol./High develop local senior Web Content Management Variance Print managers Anita Manwani/IP Society Jan 2004
  6. 6. As we looked for hubs for our financial services…. • Belgiu • India• Spain UK • Singap • Germa • m • Ireland US • China Malays • Japan • • ore ny ia Political/ Macroeconomic Environment Economic Impact Criteria Legal Climate Considere HR/Labor d CHINA INDIA MALAYSIA Objective: Evaluate merits of alternative sites for Agilent’s global financial hub and recommend optimal geographic location Anita Manwani/IP Society Jan 2004
  7. 7. 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
  8. 8. India’s Legal Framework Patents:The Patents Act 1970 as amended in March, 1999; Patents Amendment Act 2002 Design: Design Act 1911 Trademarks:Trademark s 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. Anita Manwani/IP Society Jan 2004 Trade Secrets:subject matter of contract
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. Agilent’s Right Sourcing Strategy in India >800 professionals Agilent Technologies Capacity extended to International Pvt. Ltd. 1500 Engineering Designs S/W Dev. R&D Centers Resource from strategic partners and permanent Professional Svcs CSG Training LSCA employees in India EPSG ATG Hybrid Sourcing Model OSS Solutions Support Svs integ SPG Call Centers EPSG - GSM Partners work at our sites services Hardware Refurbishments Explicit IP ownership & SLA Accounting Engineering Support management clauses Financial Services Field Support Owned Outsourcing Vendor Payments Accounts Receivables IT Support Fixed Assets Increasing BPO R&D Cash Acct, SBA Collections Print/Data Maintenance Legacy Apps Global Trade & Logistics Hub Entry Oracle ERP Maintenance IT Online Support/Help Desk R&D for Communication Remote Data Centers Parts List Application Integration Solns Low vol./High Web Content Management Variance Print Anita Manwani/IP Society Jan 2004 RF Instruments
  13. 13. Product and solutions development at ATI Agilent Engineering Services providing direct material support. Wireline and wireless OSS Solutions development High Frequency circuit design GUI and other software tools development components for Logic Analyzers, High Frequency Oscilloscopes and Precision measurement systems. User interface and data Development and support for analysis tools for the SOC Agilent VEE 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. Anita Manwani/IP Society Jan 2004 Interoperability testing.
  14. 14. 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
  15. 15. Happy Employees – loyal employees! Employee engagement program called ‘Let’s Tango!’ ‘Special Friends’ Program ‘Special Friends’ Program Harv ard ManageMentor® ‘Brain Dancing’ Lets Learn Together HR Buddies Anita Manwani/IP Society Jan 2004
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