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

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

 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

 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
knowledge and
workers
„ Work Ethics scalability of services
Source: Accenture

Anita Manwani/IP Society Jan 2004

 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
Accounts Receivables
es
IT Support Fixed Assets
i ti
Cash Acct, SBA
u n
Maintenance Legacy Apps
Collections
r t
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
 As we looked for hubs for our
financial services….
• Belgiu • India• Spain• UK • Singap • Germa
m • Ireland• US • China• Malays
ore • Japan
ny
ia Environment
Political/ Macroeconomic

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

 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: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
 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

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
¾Partners work at our sites services

Hardware Refurbishments
¾Explicit 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
 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 SocietyInteroperability
Jan 2004 testing.
 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

‘Special Friends’
Program

Harv ard ManageMentor®

‘Brain Dancing’ Lets Learn Together

HR Buddies

Anita Manwani/IP Society Jan 2004