Evolution of a Strategic Partnership with India


Amit Seth


Second Annual Conference on the Globalization of Services
St...
Mission

             Strategic Data Solutions
                       Mission
            Create value for consumers and
 ...
Yahoo’s Data Reach
 • 70% of the US Internet population uses Yahoo!

 • Engaging with 100+ properties including mail, news...
Data Platform Overview




              >20 TB of data / Day
Data Facts:
              ~5 Petabytes of data


           ...
Strategy of a Partnership
The Start and progression …

 • July 14, 2003:

   “Yahoo Inc. has set up a software development center
   in India that w...
Data Offshoring Themes

 • Large amounts of data is collected from all
   around the world, which needs to be
   processed...
Evolution of Offshoring Models




     People                 Project             Product
    Offshoring             Offs...
Model 1.0: People Offshoring

 • We latched on to the fad!
    … purely for cost benefit reasons
 • Model was to get work...
Model 2.0: Project Offshoring

 • Unstructured-ness of 1.0 didn’t facilitate any
   accountability
 • Plan evolved to let ...
Model 3.0: Product Offshoring

 • People are valued at Yahoo! to the utmost level
     Hiring and retaining good talent i...
Shared Services in 3.0

 • Maintain a horizontal services group at
   Bangalore
    … focused on making each business uni...
Questions?




             Amit Seth
             aseth at yahoo dot com
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Yahoo! Stanford APARC Presentation

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Presentation at Stanford's Annual Conference on Globalization of Services.

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  • Yahoo! Stanford APARC Presentation

    1. 1. Evolution of a Strategic Partnership with India Amit Seth Second Annual Conference on the Globalization of Services Stanford University
    2. 2. Mission Strategic Data Solutions Mission Create value for consumers and marketers by delivering the consumer-centric data platform & insight services that maximize user engagement and enable innovative marketing solutions 2
    3. 3. Yahoo’s Data Reach • 70% of the US Internet population uses Yahoo! • Engaging with 100+ properties including mail, news, shopping, finance, autos, travel, games, movies and health • Allowing Yahoo to collect more than 4,000 terabytes of behavioral data • Yahoo combines this with additional data on 200 million registered users • To derive 2000 different interests • Which provide advertisers with campaign insights and targeting opportunities Yahoo! has a daily reach larger than the Super Bowl 3
    4. 4. Data Platform Overview >20 TB of data / Day Data Facts: ~5 Petabytes of data 4
    5. 5. Strategy of a Partnership
    6. 6. The Start and progression … • July 14, 2003: “Yahoo Inc. has set up a software development center in India that will focus on the development of products and technologies to be deployed by Yahoo's Web sites worldwide. The center in Bangalore, the first research and development center set up outside the U.S. by Sunnyvale, Calif.-based Yahoo, is expected to have 150 engineers by the end of next year. Some product development work has already begun at the center.” Year 2003 2004 2005 2006 2007* Strengt … 100 600 1,000 1,400 h 6
    7. 7. Data Offshoring Themes • Large amounts of data is collected from all around the world, which needs to be processed 24X7  Executives like to view their dashboards when they wake up! • Processing all of this data for knowledge discovery poses unprecedented talent requirements  … and in large numbers! • Data Mining tasks involve 80% of the work to be on data preparation, which could be very manual 7
    8. 8. Evolution of Offshoring Models People Project Product Offshoring Offshoring Offshoring Primary Objective: Primary Objective: Primary Objective: Cost Efficiency Center of Excellence Strategic Value 8
    9. 9. Model 1.0: People Offshoring • We latched on to the fad!  … purely for cost benefit reasons • Model was to get work accomplished any which way …  … dotted line  … solid line  … multiple lines • Point of contact was lowest to lowest point • Decision making entity was also at the lowest point • Attrition was a major issue • Cost advantage turned out to be a myth 9
    10. 10. Model 2.0: Project Offshoring • Unstructured-ness of 1.0 didn’t facilitate any accountability • Plan evolved to let managerial functions also reside offshore  … but reporting to project-level hierarchies at HQ • Functions being outsourced were secondary, like QA, Operations, Documentation • Confusion on accountability continued  … as metrics for success not easy to define and track • Attrition and morale continued to be issues  … still not able to retain and attract top talent • HQ managers revolted! 10
    11. 11. Model 3.0: Product Offshoring • People are valued at Yahoo! to the utmost level  Hiring and retaining good talent is an overarching goal • Evolution has led to “moving the organization” • Senior VP at HQ hires/transfers VP to Bangalore  Transition entire product areas  Transition all functions – Product Management, Architecture, Design, Development and QA • All stakeholders now have skin in the game • Follow the talent approach allows us to execute in areas where key local talent can execute for local markets better – eg. Mobile IDC has evolved to be a Center of Excellence 11
    12. 12. Shared Services in 3.0 • Maintain a horizontal services group at Bangalore  … focused on making each business unit engagement successful • Functional groups provide headcount to shared services • Dotted line reporting into Functional heads • Key shared functions are Research, QA, Operations, User Experience Design, Tech Writers • Follows a process of local escalation with arbitration provided by center head 12
    13. 13. Questions? Amit Seth aseth at yahoo dot com

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