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Does Tech Companies Have a means to weather the Meltdown?Does Tech Companies Have a means to weather the Meltdown?
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Its heat has started to impact techfirms
Getting The UnParty Started: Seesmic Lays Off
Google Employees Watch In Horror As 60 Percen
VoIP Startup EQO Slashes Workforce by 65
Source -TechCrunch
http://www.techcrunch.com/2008/10/10/getting-the-unparty-started-seesmic-lays-off-13-of-staff/http://www.techcrunch.com/2008/10/10/google-employees-watch-in-horror-as-60-percent-of-their-stock-options-drown/http://gigaom.com/2008/10/09/voip-startup-eqo-slashes-workforce-by-65/http://gigaom.com/2008/10/09/voip-startup-eqo-slashes-workforce-by-65/http://www.techcrunch.com/2008/10/10/google-employees-watch-in-horror-as-60-percent-of-their-stock-options-drown/http://www.techcrunch.com/2008/10/10/getting-the-unparty-started-seesmic-lays-off-13-of-staff/8/14/2019 Survive Tech Meltdown
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The advises are pouringin.
Sequoia Rings the Alarm Bell: Silicon Valley I
Sequoia Capitals 56 Slide Presentation OfDoom
Inside Details of Sequoia Capitals Doomsday
Angel Investor Ron Conway Emails His Portfol
Benchmark Capital Advises StartupsTo Cons
Source -TechCrunch
http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble/http://gigaom.com/2008/10/09/what-startups-can-learn-from-sequoias-doomsday-warning/http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble/http://gigaom.com/2008/10/09/what-startups-can-learn-from-sequoias-doomsday-warning/http://www.techcrunch.com/2008/10/08/angel-investor-ron-conway-adresses-his-portfolio-companies-over-financial-meltdown/http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/http://www.techcrunch.com/2008/10/08/angel-investor-ron-conway-adresses-his-portfolio-companies-over-financial-meltdown/http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble/http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/http://www.techcrunch.com/2008/10/08/angel-investor-ron-conway-adresses-his-portfolio-companies-over-financial-meltdown/http://www.techcrunch.com/2008/10/09/benchmark-capital-advises-startups-to-conserve-capital/http://www.techcrunch.com/2008/10/08/angel-investor-ron-conway-adresses-his-portfolio-companies-over-financial-meltdown/http://gigaom.com/2008/10/09/what-startups-can-learn-from-sequoias-doomsday-warning/http://gigaom.com/2008/10/08/sequoia-rings-the-alarm-bell-silicon-valley-in-trouble/8/14/2019 Survive Tech Meltdown
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The Messages are Loud &Clear SURVIVAL IS GOING TO BE CRITICAL Cut spending. Cut fat. Preserve capital.
Focus on quality. Reduce risk
Make sure you have one years worth of cash.
Dont burn through your cash, for cash is king. Get cash-flow positive : Unprofitable companies
would have a tough time raising cash or gettingAcquired. (Need to augment valuations)
Time to be really competitive : Go on the offensiveand pound on your competitors shortcomings
Keep Marching..
http://images.google.co.in/imgres?imgurl=http://thenetworklist.com/loud_speaker_woman.jpg&imgrefurl=http://thenetworklist.com/&h=283&w=199&sz=9&hl=en&start=6&um=1&usg=__jNfIX0kQeLphS0nMpx6OPFCY10c=&tbnid=to5ehi_vRW6DiM:&tbnh=114&tbnw=80&prev=/images%3Fq%3Dloud%2Bspeaker%26um%3D1%26hl%3Den%26sa%3DNhttp://images.google.co.in/imgres?imgurl=http://thenetworklist.com/loud_speaker_woman.jpg&imgrefurl=http://thenetworklist.com/&h=283&w=199&sz=9&hl=en&start=6&um=1&usg=__jNfIX0kQeLphS0nMpx6OPFCY10c=&tbnid=to5ehi_vRW6DiM:&tbnh=114&tbnw=80&prev=/images%3Fq%3Dloud%2Bspeaker%26um%3D1%26hl%3Den%26sa%3DN8/14/2019 Survive Tech Meltdown
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Oper
atio
n
St
ra
teg
i
c
Challenges will only increase in themeltdown.. ?
Consolidate and increase competitive position Erect entry barriers for competition in order to protect turf
Augment ability to direct skilled resources and respond faster to customers business
Launch new Services (Technology & Vertical business focused)
Successfully Implement realistic revenue models.
Acquire new skill sets (subject matter expertise and domain knowledge) to implement solutions
Improve path to profitability (P to P) , Maximize Revenues
Augment existing User/customer base
Move to new geographic markets
Increase sales and marketing efforts and its efficacy.
Improve Product quality/Value and revenues
Improve customer experience /satisfaction
Quick turnarounds on customer issues and Application delivery
Consistent, quality Application Implementation support
Provide seamless upgrade path to applications delivered
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Sustaining and Marching Ahead is Crucial..
Non-CoreOperational
work
Partner
Eco-system
CashReserves/flo
ws/New
funds
Customerexperience
/Loyalty
Technologycapabilities/Quality ofService(QOS)
SalesPipeline/Mar
ketingefficacy
Direct andIndirect
Risks
In
creas
e
Op
tim
i ze
Valuations
Productivity
/ResourceUtilization
Direct andIndirect
Costs
Op.Efficiences
Time toMarket
Gold plated-Productfeatures
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So, How do you lower theSo, How do you lower the
burn-out rate ,sustain andburn-out rate ,sustain and
scale your business?scale your business?
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The Solution?
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GlobalGlobal
DeliveryDeliveryScalability at a Lower Cost-Scalability at a Lower Cost-
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Optimization Opportunities Lower Operational Costs significantly
Redirect or Scale up Strategic work in the US
Perform Non-Core or Low risk-Volumes at low costcenters.
Improved profits through IP /Asset contribution from a
lower cost base
Improve Productivity and Efficiencies.
Improve Time to Market or Time to Support
Improve Customer/Partner stickiness.
Improve Global Market Reach
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Doubling Productivity and Utilization!Cognizant Offshore Time Mgmt
Cost Saving
Faster Time to Market - Follow the Sun Leverage low-cost talent from offshore to handle spikes, new requirements , POC
IST
US PST
08:00am 10:00 12:00 14:00 16:00 18:00 8:00pm 22:00 24:00 02:00 04:00 06:00
7:30pm 21:30 23:30 01:30 03:30 06:30 07:30am 09:30 11:30 13:30 15:30 01:30
Time Management
A
B
C
D
A
B
D
C
Handshake: from on-site to off-shore (via telecon, e-mail, communication datasets)
Handshake
On-site working
India Off-shore working (staggered over 12 hours)
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Global Delivery Benefits
Decrease Costs and Improve revenues and Profit margins
Improve speed-to-market by leveraging follow-the-sun distributed, offshore
based Operational Services
Significant reduction in turn-around time (US Team and India Teams)
Re-focus key resources on strategic activities while you move non core work to
low cost Global Delivery center
Help Improve Your Partner & Customer satisfaction and loyalty by Pack more quality in the resources and services offered to your customers
Providing 24x7 world-wide support
Improving Productivity and turn-around time
Increase agility, flexibility and reaction time by leveraging the off-shore location
for resource spikes to serve your business demands while keeping costs low.
Mitigate operational risks by leveraging the alternate, off-shore location
Redirect cost savings and available resources towards Sales, marketing and
branding
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Global Delivery Cost Value model
Time
Cost/ Value Cost & value pattern
without Global Delivery
Initial setup
costs
Costarbitrage
due toGlobal
Delivery
Further costsaving fromoperation
optimization,increase inefficiencies
Cost pattern in theGlobal Delivery Model.
Value pattern in the
Global Delivery model
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Why India,Why Chennai?
Lower cost Net savings of 40-50% for resources (
Click here for More info..) Chennai is a leader in enabling Global IT (Click here 1,2)
Better
performance
Higher Productivity increases..
Access to better talent, higher employee satisfaction
Young & energetic workforce
Large number of educational institutions catering to ITindustry
Better quality Reduced defect rates due to strong quality processes (SEI
CMM)
Faster
turnaround
Follow-the-sun execution model (12 hrUS-India time
difference)
Slash time to market, Time to support clients
Increase Profits Leverage offshore to reduce costs and realign business
objectives
Environment Stable political environment and a IT-friendly governmentTax incentives for IT companies
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6313http://www.itknowledgeworld.com/?p=135http://www.bpoindia.org/research/nasscom-50-locations.htmlhttp://www.bpoindia.org/research/nasscom-50-locations.htmlhttp://www.itknowledgeworld.com/?p=135http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=63138/14/2019 Survive Tech Meltdown
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India - Some quick facts
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53615
More Information : Fact Sheets from Nasscom , the Voice of IT in India
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6311
http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=53615http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6311http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6311http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=6312http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=536158/14/2019 Survive Tech Meltdown
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We are here to rescueWe are here to rescue
and Help you!and Help you!
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