Outsourcing & Cloud Computing

Outsourcing

arrangement where one company contracts another organization to provide services that could be performed by its own employees

Shared Control

both the outsourcing company and service provider manage the outsourcing process; requires matrix management

Core Business Process

business function that:

• provides valuable customer benefits

• difficult for competitors to imitate

• impacts multiple products and markets

• directly influences organizations customers

• ties closely to the company’s mission and vision

Reasons to Outsource

• cost reduction

• improved focus

• upgrading capabilities and services

• accelerating time to market

Cost Reduction

leveraging economies of scale or specialized expertise lower costs

Improved Focus

allows organizations to concentrate on their primary priorities

Upgrading Capabilities and Services

partner with world-class service providers

Accelerating Time to Market

gain high-level expertise for faster project execution

Cloud Computing

computing environment where services are delivered over the internet using another organization’s hardware; allows flexibility and scalability

Public Cloud Computing

service provider owns and manages the infrastructure, and users access shared resources via the internet

Private Clout Computing

cloud environment for a single organization; offers enhanced security for organizations with sensitive data

On-Premises Private Cloud

managed internally

Service Provider-Managed Private Cloud

virtual private cloud managed by external providers

Hybrid Cloud Computing

combines both private and public clouds, connected through a private network

Public Cloud

for less sensitive applications

Private Cloud

for critical operations and secure data

As A Service (XaaS)

various cloud service offerings

• Infrastructure as a Service (IaaS)

• Platform as a Service (PaaS)

• Software as a Service (SaaS)

Challenges of Cloud Computing

• Complex Pricing: hard to estimate costs accurately

• Performance Variability: fluctuations in service reliability

• Data Security Risks: vulnerable to breaches and attacks

• Vendor Lock-In: difficult to switch providers due to compatibility issues

• Outages: risks of service downtime

Multi-Cloud Strategy

using multiple cloud providers to:

• avoid vendor lock-in

• mitigate risks of outages

• increase complexity and cost