V. Wu, Ph.D. CTO of CentLing Technologies Co. Ltd. The Future of Outsourcing as a Service (OaaS) in the Overseas Market

V. Wu, Ph.D.

CTO of CentLing Technologies Co. Ltd.

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

All Rights Reserved © CentLing Technologies 20122 | The Future of OaaS in the Overseas Market | May 2013

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


Introduction to

Cloud Computing


Understanding Cloud Computing

IP

All Rights Reserved © CentLing Technologies 20125 | Cloud Computing, Applications, and Success Factors | Aug 2012

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.


Cloud Computing Service Models

Presentationmobility

Presentationplatform

APIs

Applications

Data Metadata Content

Integration and middleware

APIs

Abstraction

Hardware

Facilities

SaaS

PaaS

IaaS

Data Video Voice Embedded Mobile PC

Various by vendor

Embedded Native Web

Structured Unstructured

Database Identity Messaging Queuing

Management

Authentication Security TCP/IP

Grid/Cluster

Images VMM

HVAC Power Space

Infr

ast

ruct

ure

Reso

urc

es

Compute Network Storage

Note: Definitions per U.S. NIST standards

All Rights Reserved © CentLing Technologies 2012

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.

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

Infrastructure as a Service (IaaS)

Processor Memory Storage

Operating System

IaaSIT


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.


Operating System PaaSRuntime API Web Server

Dev.


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.


Operating SystemSaaS

Runtime API Web Server

Web UI Web App. Web Service

Consumer


Cloud Computing Deployment Models

Four deployment models: Public, Private, Hybrid, Community

Infrastructure asa Service (IaaS)

Platform asa Service (PaaS)

Software asa Service (SaaS)

Servicemodels

Deploymentmodels

Serviceattributes

Resource pooling

Elasticity Pay-By-Use Broad Network Access

Community Hybrid Private Public

Self-Service

Note: Definitions per U.S. NIST standards


Current (China)

Outsourcing Services

in the Overseas Market


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


Comparison between India and China Outsourcing

Aspects India ChinaEducation (Qualifications) + +English Communication + _ _

Data Security + _

Geographic Advantage = =Price _ +Stability (Workforce) _ +Trust + _

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


What is

Outsourcing as a

Service (OaaS)


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.


Comparison between India and Other Emerging Countries

Aspects India Philipines MexicoEnglish Communication - + +Geographic Advantage = = +Price = = +Culture - + +


The Birth of Outsourcing as a Service (OaaS)

Cloud Computi

ngPlatfor

m

Cloud Computi

ngPlatfor

m

OutsourcingService+

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.


Challenges facing

Outsourcing as a

Service (OaaS)

in the Overseas Market


Challenges Offering OaaS Overseas

Lack of OaaS development experience in the local market


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 CloudIn US Market

Acceptance of CloudIn China Market


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


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


Challenges Offering OaaS Overseas (cont.)

Lack of OaaS development experience in the local market

Lack of strategic preparations and commitment to compete 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


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

Documents

V. Wu, Ph.D. CTO of CentLing Technologies Co. Ltd. The Future of Outsourcing as a Service (OaaS) in the Overseas Market