V. Wu, Ph.D. CTO of CentLing Technologies Co. Ltd.

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

2. 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

3. Introduction to Cloud Computing 3 | The Future of OaaS in the Overseas Market | May 2013

4. Understanding Cloud Computing IP 4 | The Future of OaaS in the Overseas Market | May 2013

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Current (China) Outsourcing Services in the Overseas Market 11 | The Future of OaaS in the Overseas Market | May 2013

12. 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

13. 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

14. What is Outsourcing as a Service (OaaS) 14 | The Future of OaaS in the Overseas Market | May 2013

15. 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

16. Comparison between India and Other Emerging Countries 16 | The Future of OaaS in the Overseas Market | May 2013

17. 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

18. Challenges facing Outsourcing as a Service (OaaS) in the Overseas Market 18 | The Future of OaaS in the Overseas Market | May 2013

19. Challenges Offering OaaS Overseas Lack of OaaS development experience in the local market 19 | The Future of OaaS in the Overseas Market | May 2013

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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