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The Future of Outsourcing as a Service (OaaS) in the Overseas Market. V. Wu, Ph.D. CTO of CentLing Technologies Co. Ltd. Agenda. Introduction to Cloud Computing Current (China) Outsourcing Services in the Overseas Market What is Outsourcing as a Service (OaaS)

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slide1

The Future of Outsourcing as a Service (OaaS) in the Overseas Market

V. Wu, Ph.D.

CTO of CentLing Technologies Co. Ltd.

agenda
Agenda
  • Introduction to Cloud Computing
  • Current (China) Outsourcing Services in the Overseas Market
  • What is Outsourcing as a Service (OaaS)
  • Challenges facing Outsourcing as a Service (OaaS) in the Overseas Market
slide3
Introduction to

Cloud Computing

3 | The Future of OaaS in the Overseas Market | May 2013

understanding cloud computing
Understanding Cloud Computing

IP

4 | The Future of OaaS in the Overseas Market | May 2013

four key attributes of cloud computing
Four Key Attributes of Cloud Computing

Elasticity: Resources can be rapidly and elastically provisioned.

Pay-By-Use: The use of cloud system resources is measured, audited, and reported to the customer based on a metered system.

Self Service: A client can provision computer resources without the need for interaction with cloud service provider personnel.

Broad Network Access: Access to resources in the cloud is available over the network.

5 | Cloud Computing, Applications, and Success Factors | Aug 2012

cloud computing service models
Cloud Computing Service Models

SaaS

Data

Video

Voice

Embedded

Mobile

PC

Presentation

mobility

Presentation

platform

Various by vendor

APIs

Web

Applications

Embedded

Native

Resources

Data

Unstructured

Metadata

Content

Structured

PaaS

Database

Identity

Integration and middleware

Messaging

Queuing

IaaS

APIs

Management

Security

TCP/IP

Authentication

Abstraction

Images

VMM

Grid/

Cluster

Infrastructure

Network

Storage

Hardware

Compute

HVAC

Power

Space

Facilities

Core connectivity & delivery

Note: Definitions per U.S. NIST standards

6 | The Future of OaaS in the Overseas Market | May 2013

infrastructure as a service iaas
Infrastructure as a Service: IaaS provides virtual machines, virtual storage, virtual infrastructure, and hardware assets as resources to clients. Client manages all other aspects of the deployment including applications and user interactions with system.Infrastructure as a Service (IaaS)

IT

Operating System

IaaS

Processor Memory Storage

7 | The Future of OaaS in the Overseas Market | May 2013

platform as a service paas
Platform as a Service (PaaS)

Platform as a Service: PaaS provides virtual machines, OS, applications, services, deployment frameworks, transactions, and control structures. Client can deploy its applications on the Cloud or use applications that were programmed using languages and tools that are supported by PaaS.

Runtime API Web Server

Dev.

PaaS

Operating System

Processor Memory Storage

8 | The Future of OaaS in the Overseas Market | May 2013

software as a service saas
Software as a Service (SaaS)

Software as a Service: SaaS is a complete operating environment with applications, management, and the user interface. In SaaS, the application is provided to the client through a thin client interface, and the customer’s responsibility begins and ends with entering and managing its data and user interaction. Everything from the application down to the infrastructure is the vendor’s responsibility.

Web UI Web App. Web Service

Runtime API Web Server

SaaS

Consumer

Operating System

Processor Memory Storage

9 | The Future of OaaS in the Overseas Market | May 2013

cloud computing deployment models
Cloud Computing Deployment Models

Four deployment models: Public, Private, Hybrid, Community

Community

Public

Private

Hybrid

Deployment

models

Software as

a Service (SaaS)

Service

models

Platform as

a Service (PaaS)

Infrastructure as

a Service (IaaS)

Resource pooling

Service

attributes

Pay-By-Use

Broad Network Access

Self-Service

Elasticity

Note: Definitions per U.S. NIST standards

10 | Cloud Computing, Applications, and Success Factors | Aug 2012

slide11
Current (China)

Outsourcing Services

in the Overseas Market

11 | The Future of OaaS in the Overseas Market | May 2013

top 10 risks of offshore outsourcing
Top 10 risks of Offshore Outsourcing

Cost-Reduction Expectations

Data Security/Protection (ISO 27001)

Process Discipline (CMMI)

Loss of Business Knowledge

Vendor Failure to Deliver

Scope Creep

Government Regulation – US Patriot & Sarbanes-Oxley Acts

Culture Difference

Turnover of Key Personnel

Knowledge Transfer

12 | The Future of OaaS in the Overseas Market | May 2013

comparison between india and china outsourcing
Comparison between India and China Outsourcing

Note: More than 82% American companies prefer to outsource to India

13 | The Future of OaaS in the Overseas Market | May 2013

slide14
What is

Outsourcing as a

Service (OaaS)

14 | The Future of OaaS in the Overseas Market | May 2013

push to initiate oaas offering
Push to initiate OaaS Offering

Overseas market reverses the trend from Outsourcing to Insourcing through taxes incentives

One third of U.S. executives considered moving work back to U.S.

Latest development: Apple Inc. to move some productions back to U.S. in 2013

Economic differentials encourages moving work closer home

Manufactures moving to Mexico to take advantages of lower wages and favorable currency exchanges (peso vs. dollar)

“Cloud Computing is threatening the business model of IT outsourcing industry” according to Infosys Chief Executive.

15 | The Future of OaaS in the Overseas Market | May 2013

comparison between india and other emerging countries
Comparison between India and Other Emerging Countries

16 | The Future of OaaS in the Overseas Market | May 2013

the birth of outsourcing as a service oaas
The Birth of Outsourcing as a Service (OaaS)

Cloud Computing

Platform

+

Outsourcing

Service

  • OaaS applies both to Business Process Outsourcing (BPO) as well as Knowledge Process Outsourcing (KPO)
  • OaaS applies both to Small and Medium-sized Business (SMB) as well as large-sized business.

17 | The Future of OaaS in the Overseas Market | May 2013

slide18
Challenges facing

Outsourcing as a

Service (OaaS)

in the Overseas Market

18 | The Future of OaaS in the Overseas Market | May 2013

challenges offering oaas overseas
Challenges Offering OaaS Overseas

Lack of OaaS development experience in the local market

19 | The Future of OaaS in the Overseas Market | May 2013

a total paradigm shift of adopting cloud computing
A Total Paradigm Shift of adopting Cloud Computing

The acceptance of cloud computing is a paradigm shift from “purchasing a product” to “leasing a service”.

Cloud Computing Business Model = Computing as a Service

Acceptance of Cloud

In US Market

Acceptance of Cloud

In China Market

20 | Cloud Computing, Applications, and Success Factors | Aug 2012

top ten adopters of cloud computing in u s
Top Ten Adopters of Cloud Computing in U.S.

Messaging and team collaboration applications

Cross enterprise integration projects

Infrastructure consolidation, server, and desktop virtualization efforts

Web 2.0 and social strategy companies

Web content delivery services

Data analytics and computation

Mobility applications for the enterprise

Customer Relationship Management (CRM) applications

Experimental deployments, test bed labs, and development efforts

Backup and archival storage

21 | Cloud Computing, Applications, and Success Factors | Aug 2012

some market usages of cloud computing in u s
Some Market Usages of Cloud Computing in U.S.

Handling streaming traffic - TV Show and Movies Streaming (Netflix)

Handling spiking traffic – social gaming (Zynga)

Performing overnight data analysis – online market service (Etsy)

Trained machine - learning algorithms – develop advanced cybersecurity system (Northrop Grumman Information Systems)

Reengineering a legacy central reservation system – revamping a hotel application system (InterContinental Hotels Group)

Prototyping a service to monitor nonemergency 311 requests – Miami city

22 | Cloud Computing, Applications, and Success Factors | Aug 2012

challenges offering oaas overseas cont
Challenges Offering OaaS Overseas (cont.)

Lack of OaaS development experience in the local market

Lack of strategic preparations and commitment to compete overseas

23 | The Future of OaaS in the Overseas Market | May 2013

key factors to be successful overseas
Key Factors to be successful Overseas

Strong Management & Sponsorship

Hire local representatives to set liaison with local companies

Have local managers representing each project or contract

Actively seek out business opportunities

Offshore Experience and Readiness

Team can communicate well with customers

Quality Assurance – lack of branding in the overseas market

Onshore-Offshore Ratio (20-80 or 10-90 Ratio)

Established local branches overseas

24 | The Future of OaaS in the Overseas Market | May 2013

in conclusion
In Conclusion

Invest in Cloud Computing Technologies locally

Have a good strategic plan to set footprints in overseas locations

Technical Expansion doesn’t stop here - Invest in other technologies besides Cloud Computing (CC) such as Software Defined Network (SDN) and Big Data (BD)

CC

SDN

BD

25 | The Future of OaaS in the Overseas Market | May 2013