© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 1 Shared Service Center Organization Sharon Cohen March 23 rd, 2008

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 2 Agenda  Mission  SSC Organization  Waves  Scope  Operation  Advantages  Risks

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 3 Mission  To be a valued leader and business partner delivering efficient, effective, and agile F&A shared services that inspire our team to drive results and enable growth for our customers while reducing costs.  More consistent, customer-focused delivery  Scalability  More strategic and rewarding roles for F&A employees  Improved operational efficiency  Strategically-focused vendor relationships  Standardized processes & policies

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 4 CISCO - SSC Organization  Since implimentation a few years ago we have successfully co-located F&A transactional processing from 35 geographic locations into 4 Shared Service Centers (Tokyo, Singapore, San Jose and Amsterdam).  We Recently opened a 5th Shared Services Center, our Global Center, in Bangalore, India while maintaining four regional centers.  For those countries whose activity is not managed by the SSC's there is a small-country outsourced vendor or an in- country Finance model in place

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 5 Waves  Wave 1 Accounts Payable, Expense Management Services = ~3/4 of processes  Wave 2 Collections, Accounts Receivable = ~2/3 processes  Wave 3 Payroll Accounting, General Ledger =~ 1/4 processes  Wave 4 Emerging markets F&A processes

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 6 Scope  Which processes will move to the global SSC? We selected those processes that are considered low risk to the business and highly transactional in nature. Driving global standardization and enhancement of these processes, will help ensure that the F&A SSO is delivering consistently best-in-class services to its customers in the most efficient and effective manner.  Which process will stay in the regions? Those process and portions of processes which require specific regional knowledge, local statutory requirements and are considered to be high touch.

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 7 How we will operate our 5 th SSC?  We will be partnering with a highly experienced outsourced vendor to co-manage our 5 th SSC – The global center in Bangalore. By centralizing many of our transactional activities, the F&A SSO will be better positioned to globally scale to meet business growth demand while providing more value-added, consistent services to its customers worldwide.  Having fewer, but more strategically aligned vendor relationships, will enable process and system standardization, service consistency, scalability, reduced costs and operational efficiency.

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 8 F&A Shared Services Organization Update F&A R2R Payroll F&A SSO Sr. Director Global Ops US/Can EuroAPACJapanEM Controllers + RFM F&A R2R Payroll F&A R2R Payroll F&A R2R Payroll I2C GPM I2C GPC A/P & EMS A/P & EMS GPM A/P & EMS A/P & EMS A/P & EMS P2P GPC

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 9 Advantages  This New operating model will enable us to achieve more efficient, customer-focused delivery, with a level of consistency, flexibility and scalability to our customers worldwide, To improve overall operational efficiency and reduce costs.  The key business initiative undertaken by the Finance and Accounting Shared Services Organization is to meet Cisco growth demands and changing customer needs. It is aligned with our corporate globalization strategy and customer-focused mindset.  Allows us to grow in a way that will enable us to effectively support the business. The demands from our customers, internally and externally, are changing because of globalization and the growing complexity of the business. Shared services will enable growth for the people on our teams by broadening their knowledge of the business, enabling them to focus more on the customer, and work beyond the transactional activities they do today.

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 10 Risks  Culture and Language  Communication learning process  Tax regulation (withholding tax, VAT) and updates  Outage Risks (for the Global SSC located in India) We prepared a Business Continuity Planning (BCP) taking into consideration the outage risks due to infrastructure challenges in India. As a solution we will have 2 small hubs connected to our global center (to be located in Warsaw, Poland and Dalian, China) and the four SSC that will be able to continue to function while supporting a large amount of our processes.

© 2006 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialPresentation_ID 11 Feedback and Q & A