Technical Support Global Outsourcing Initiatives Click to edit Master title style Strategic Partnerships, Focus on Outsourcing • • • • • Click to edit Master text styles Second level Third level Douglas level R. Batts Fourth Director of WW Technical Support Fifth level Semiconductor Division Texas Instruments, Inc. 1 1 1 Technical Support Global Outsourcing Initiatives Click toTexas edit Instruments Master title style Revenue Breakout, 2002 • Click to edit Master text styles Total $8.4B • Second level • Third level Semiconductors $6.9B • Fourth level • Fifth&level Sensors Controls $1B Educational & Productivity Solutions $.5B 2 2 2 Technical Support Global Texas Instruments Outsourcing Initiatives Global Presence Click to edit Master title style Melville Poughkeepsie Rochester Vancouver • • • • • Shanghai Bangalore Almelo Holland Amsterdam Utrecht Dublin Zurich Stockh Vienna Laurence Harbor Morganville Warren Portland Seattle thantext 35,400 edit More Master styles employees worldwide Click to Second level Third level 20,400 in the Americas 7,900 in Asia Fourth level 3,300 in Japan Fifth level Beijing Baoying Quebec Chicago Detroit Indianapolis Bloomington Chinchon Seoul Atsugi Palo Alto Hatogaya San Diego Hiji San Jose Kitsuki Santa Rosa Miho Santa Cruz Nagoya Santa Barbara Osaka Woodland Hills Aurora Oyama Longmont Tokyo Austin Tsukuba Dallas Hong Kong Yokohama Houston Lewisville Chung Ho McKinney Taipei Plano Sherman Baguio Mesa Phoenix Taipei Tempe Ottawa Toronto Attleboro Mansfield Waltham Livingston Blackheath Northhampton Brussels Leuven Freising Stamford Madrid Manchester Nice Merrimack Paris Baltimore Grenoble Germantown Pittsburgh Cary Raleigh Altamonte Springs Versailles Ft. Lauderdale Atlanta Tampa St. Louis Cincinnati Schaumburg Warrenville Austin Espoo Copenhagen Ballerup Alborg Essen Koblenz Stuttgart Milan Herzlia Kfar Saba Aguascalientes Guadalajara Mexico City 2,900 in Europe Kuala Lumpur Singapore Campinas San Paulo Sydney Melbourne 3 3 3 Technical Support Global Outsourcing Initiatives Click to edit Master title style WW Technical Support • Click to edit Master text styles • Second level Asia Japan Americas • Third level Product Information Product Information Product Information Center - Taiwan Center Center • Fourth level Product Information Center - Shanghai Sales Lead Sales Lead • Fifth level Management Management Sales Lead Management DSP SDS Support Team Product Information Center Sales Lead Management Centralized Account Management Centralized Account Management WW KnowledgeBase Operations Europe India Email Support Team 4 4 4 Technical Support Global Outsourcing Initiatives Click to edit Master title style TI PIC Global Presence • • • • • Click to edit Master text styles Second level Third level Fourth level Fifth level Americas PIC Dallas,Texas Europe PIC: • Harte Hankes Freising, Germany • 15-20K customers • Harte Hankes • 10-15K customers Japan PIC: Tokyo, Japan • Tele-Marketing-Japan •5K customers Asia PIC: Taipei, Taiwan • Netwise • 5K customers China PIC: Shanghai, China • Opening 11/03 • Sykes Industries • 5K customers 5 5 5 Technical Support Global Outsourcing Initiatives Click to edit Master title style Balancing Off-Shore Risks vs Rewards • • • • • • Lack of scale Click to edit Master text styles • Lower operational cost • Supply chain infrastructure structure Second level • Quality controls Third level Fourth level Off-Shore Rewards Off-Shore Risks Fifth level 6 6 6 *China's low labor costs are no substitute for diligent supply chain management, Andrew Maclellan EBN Technical Support Global Outsourcing Initiatives Click to Influencing edit Master style Factors Off-Shoretitle Direction volumes •• Increasing Click case to edit Master text styles • Flat operational budget $ • Increasing case complexities constraints •• Improved Second level customer support initiatives • Shrinking Americas talent pool • Improved case resolution times • Third level • Fourth level • Fifth level 7 7 7 Technical Support Global Outsourcing Initiatives America’s Engineeringtitle Talentstyle Pool Click toShrinking edit Master US Graduate Talent Pool • • • • • 100% 80% 60% 40% 20% 0% YR02 Engineering Talent Pool Click to edit Master text styles Second level Third level Fourth level Fifth level 100% 80% 60% 40% 20% 0% 1988 2001 BSEE Grads BS Eng Grads • Bachelor degrees in engineering in 2001 were 65,195, down from 71,386 in 1988, an 8.6 percent drop* • For the same time period, electrical engineering degrees declined 47 percent, from 24,367 to 12,929 US BS Eng Grads China BS Grads • Europe graduates three times as many engineering students as the US, Asia five times as many. • Less than two percent of U.S. high school graduates will earn an engineering degree • In the US, more students are getting degrees in “parks and recreation” than in electrical engineering. ** *American Association of Engineering Societies ** Wall Street Journal * Southern Methodist University 8 8 8 Technical Support Global Outsourcing Initiatives Click Key to Outsourcing edit Master title style Considerations • • • • • • Leadership in Key Disciplines Click to edit Master text styles • Quality of Operations Second level • Skills and breadth of available talent pool Third level effectiveness • Operational • Efficiency Fourth level of Operations • Cost effectiveness Fifth level • Scalability • Flexibility • Global Footprint 9 9 9 Technical Support Global Outsourcing Initiatives Click to edit Master title style Top 9 Indian IT vendors Ranking • • • • • Vendor Overall rating Click to edit Master text styles Second level Third level Fourth level Fifth level 1 Tata Consultancy Services Positive 2 Infosys Technologies Positive 3 Wipro Technologies Positive 4 Satyam Computer Services Promising 5 HCL Technologies Promising 6 Patni Computer Systems Promising 7 Covansys Corporation Promising 8 Cognizant Technology Solutions Positive 9 Syntel Promising The Gartner Offshore Vendor Ratings provide clear, concise indicators of each vendor's overall status and the status of such initiatives as strategy, organization, product(s), technology, marketing, financials and support. August 7, 2003 Source: Rediff.com 10 10 10 Technical Support Global Outsourcing Initiatives Click to edit Master title style Key Outsourcing SLA Considerations • • • • • Click to edit Master text styles • Metrics Second level • Hiring/retention Third level • Training (80/20 or 20/80) • Formal review Fourth levelprocess • Exit clause Fifth level 11 11 11 Technical Support Global Outsourcing Initiatives Click toOutsourcing edit Master style Typical Programtitle Elements • Program Overview •• Human ClickResources to edit Master text styles • Recruitment • Second level • Training • Third level • Retention •• Quality Fourth level • Performance Objective • Fifth level • Implementation • Account Management •Quality Assurance • Schedule 12 12 12 • Pricing 8/03 Shanghai PIC Proposal Technical Support Global Outsourcing Initiatives Click End to toedit Master title style end Product Design & Support Developer / Field Engrs / Sys admin / Pre-Sales Technical assistance Product Support • Click to edit Master text styles Current engineering End-user helpdesk support support • Second level • Third level System integration Product •Design Fourth level Testing System Applications • Fifth level Silicon Concept VLSI Design System Design T o t a l O u t s o u r c i n g Product architecture & Consulting Comprehensive range of Product Engineering solutions *Wipro Technologies customer presentation - YR03 13 13 13 Technical Support Global Outsourcing Initiatives Click to edit Master title style PreAnalysis Analysis Transition Management Ongoing Operations •Understand client business •Identify outsource opportunities •Assess requirements •Review environment •Confirm viability •Gather documentation •Identify solution and costing •Confirm and validate with client •Prepare process implementation plan •Adapt process plan •Emulate client process •Document operating plan •Confirm performance requirements •Customer acceptance •Operations accepts service responsibility •Quality plan put into effect •SLA acceptance •Client process understanding •Joint recommendations for outsourcing of any related/relevant process other than mentioned in the contract/RFP •Requirements document •Environment/Resources /Performance Document •As-is process mapping document •Solution / Technology document developed in conjunction with the client •Process implementation plan •Operating Plan Blueprint •Performance requirement document •Resources / Infrastructure / Technology ramp-up •Quality plan •Knowledge transfer from client site to operations team offshore •Pilot Process kick-off •Continuous Monitoring by client on SLA’s Location Offshore Offshore-Onsite Offshore-Onsite Offshore Timeline 1-2 weeks 1-2 weeks 2-3 weeks Ongoing engagement Responsibility Client functional managers Wipro BPO specialists Client functional managers Wipro analysis team Client functional managers Wipro transition team Client operations team Wipro service delivery head Key Activities • Click to edit Master text styles • Second level Deliver• Third level ables • Fourth level • Fifth level Our engagement approach is structured along four phases Using Transition Toolkit *Wipro Technologies Customer presentation YR03 14 14 14 Technical Support Global Outsourcing Initiatives Technical Support Model Click WW to edit Master title style Customer Touch Points • C U• S • T O• M • E R S Product Information Centers Level I PIC Front End WW LBEs/SBEs Level III Level II Catalog Back End Click to edit Master text styles Product ( ) TI Engineers Applications Support Second level Senior Information Specialists Third level Wipro India Wipro India Out-sourced Out-sourced DSP L3 Fourth level DSP/HPA L2 Support Support K-Base (E-mail only) (E-mail only) Fifth level OutSourced (Specialization by Product.SBE) ti.com DSP Village Analog Portals Field Sales Field Sales Customer Organization Service Regions Strategic Partnerships Model Americas Harte-Hanks In-Source Europe Harte-Hanks In-Source Asia (Taipei) Netwise In-Source Asia (Shanghai) Sykes In-Source Asia (India) Wipro (L2/L3 only) Off-Shore Japan Tele-Marketing-Japan In-Source 15 15 15 Technical Support Global Outsourcing Initiatives Case study: Technical support Leading Semiconductor vendor Click to edit Master title style Client Situation • • • • • Transition Click toWipro editteamMaster text styles started Wipro uses Vantive for with L3 TAC support issue management and Secondforlevel limited product Citrix for accessing families for EMEA and Client’s k-base APAC escalations Siebel based call tracking Third level Wipro used a & escalation system transition process In a 12 months period, Fourth level comprising preWipro supports most process and process product families and Fifth level training on a train the provides L3 support to Our client is a global leader in DSP and analog products Product support is strategic to client’s sales strategy Client has support centers in Americas, EMEA and APAC. Only Americas has all L1 to L3 support Client partnered with Wipro to augment support to free internal team and to reduce support cost trainer model and onsite support Support team transitioned to offshore after 3 months Impact Solution Americas and L2 / L3 support to EMEA and APAC e-mail based support with limited inbound & outbound voice calls *Wipro Technologies customer presentation Yr03 Average resolution time of Wipro team at 2.9 days from previous 5.7 days is best among all support centers Wipro’s application notes for sw development system downloads are ranked #1 and #3 Customer satisfaction index at 92% for L3 and 93% at L2 against SLA of 90% 16 16 16 Technical Support Global Outsourcing Initiatives Click Wipro to edit Master title style Customer Satisfaction Results Past 12 Months Data • • • • • 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 96% Goal Click to edit Master text styles Second level Third level Fourth level WiproWiproWiproAmPIC SDS CS Fifth level HPA DSP SDS Apps Very Satisfied Satisfied Dissatisfied • Customer satisfaction metric of 96% or better • FAQ generation of 4/mo. or more • Q-Lead generation of 4/mo. or more 17 17 17 Technical Support Global Outsourcing Initiatives Click to edit Master title style • • • • • Questions? Click to edit Master text styles Second level Third level Fourth level Fifth level 18 18 18