As part of its ambitious globalisation campaign, the world leader in networking for the Internet, Cisco Systems is planning to shift 20 % of its senior management to the company’s upcoming Globalisation Centre East in Bangalore.
The company has already kick-started the process by sending Chief Globalisation Officer at Cisco Systems Inc Wim Elfrink along with a seven member team to Bangalore. “Cisco wants to have 20 % of its senior management working at the company’s Globalisation Center East currently under construction in Bangalore by 2010,” according to Cisco. The executives will consist of a mixture of rising stars from San Jose and Bangalore, and talent landed through acquisitions or plucked away from competitors around the world.
“The Cisco Globalisation Center will enable Cisco to locate a significant presence in Asia, a region in which there is high growth potential. All of the company’s primary business functions, including sales, business development, IBSG, finance, human resources, marketing, engineering, and customer support will all be represented in India, as well as the United States,” Elfrink has said.
“We believe that India, with its educated workforce, market opportunities, rich history and culture, is a great location from which to implement our globalisation strategy. As a result of the Cisco Globalisation Center East, we will be able to best serve our customers by creating new ways to deliver information, products and services,” he added.
Hundreds of American companies, from giants such as Oracle Corp and Yahoo Inc to fledgling startups, have entered Asia since the 2000 dotcom crash. They did so under pressure from investors and venture capitalists to cut costs, big time; some firms outsourced entire departments—be they software development, data analysis, even research and development —to developing countries where the help is cheap but skilled, but rarely have top executives relocated.
Given Cisco’s massive size— it is Silicon Valley’s most valuable company, based on market capitalisation— many other multinational corporations are expected to follow suit, Indus Business Journal has said. “India was chosen for a number of reasons. First, it has innovative customers and skilled partners that have global capabilities. India has a culture that is known for its strong understanding of the concept of partnership. And, India’s government is focused on economic development across all levels of society,” Elfrink said. “We believe in India, with its educated workforce, market opportunities, and supportive culture, is a great location from which to implement our globalization strategy” he added.