Outsourcing as a

earsplittinggoodbeeInternet and Web Development

Nov 3, 2013 (3 years and 8 months ago)

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V. Wu, Ph.D.


CTO of CentLing Technologies Co. Ltd.


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

All Rights Reser ved © CentLing Technologies 2012

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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

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Introduction to

Cloud Computing

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Understanding Cloud Computing

IP

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| Cloud Computing, Applications, and Success Factor s | 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.

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Cloud Computing Service Models

Presentation

mobility

Presentation

platform

APIs

Applications

Data

Metadata

Content


Integration and middleware

APIs

Abstraction

Core connectivity & delivery

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

Infrastructure

Resources

Compute

Network

Storage

Note: Definitions per U.S. NIST standards

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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.

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Infrastructure as a Service (IaaS)

Processor Memory Storage

Operating System

IaaS

IT

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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.

Processor Memory Storage

Operating System

PaaS

Runtime API Web Server

Dev.

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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.

Processor Memory Storage

Operating System

SaaS

Runtime API Web Server

Web UI Web App. Web Service

Consumer

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| Cloud Computing, Applications, and Success Factor s | Aug 2012


Cloud Computing Deployment Models


Four deployment models: Public, Private, Hybrid, Community

Infrastructure as

a Service (IaaS)

Platform as

a Service (PaaS)

Software as

a Service (SaaS)

Service

models

Deployment

models

Service

attributes

Resource pooling

Elasticity

Pay
-
By
-
Use

Broad Network Access

Community

Hybrid

Private

Public

Self
-
Service

Note: Definitions per U.S. NIST standards

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Current (China)

Outsourcing Services

in the Overseas Market

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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

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Comparison between India and China Outsourcing


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

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What is

Outsourcing as a

Service (OaaS)

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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.

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Comparison between India and Other Emerging Countries

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The Birth of Outsourcing as a Service (OaaS)

Cloud
Computin
g

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.

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| The Futur e of OaaS in the Over seas Mar ket | May 2013

Challenges facing

Outsourcing as a

Service (OaaS)

in the Overseas Market

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| The Futur e of OaaS in the Over seas Mar ket | May 2013


Challenges Offering OaaS Overseas


Lack of OaaS development experience in the local market

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| Cloud Computing, Applications, and Success Factor s | Aug 2012


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

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| Cloud Computing, Applications, and Success Factor s | Aug 2012


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

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| Cloud Computing, Applications, and Success Factor s | Aug 2012


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

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Challenges Offering OaaS Overseas (cont.)


Lack of OaaS development experience in the local market


Lack of strategic preparations and commitment to compete overseas

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| The Futur e of OaaS in the Over seas Mar ket | May 2013


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

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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)

C
C

SDN

BD