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  • 8/14/2019 Survive Tech Meltdown

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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/
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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%3DN
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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

  • 8/14/2019 Survive Tech Meltdown

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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

  • 8/14/2019 Survive Tech Meltdown

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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?

  • 8/14/2019 Survive Tech Meltdown

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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 re