Information Technology Outsourcing (ITO) Market Update: August 2007 Preview Deck. Topic: Impact of the Service-Oriented Architecture on IT Outsourcing

Transcription

1 Information Technology Outsourcing (ITO) Market Update: August 2007 Preview Deck Topic: Impact of the Service-Oriented Architecture on IT Outsourcing

2 Table of contents Topic Summary of key messages 04 Service-Oriented Architecture () basics 05 Business alignment of 08 IT perspective of 09 implementation approaches 13 Legacy Wrapper 16 Service-to-Service 17 Proxy Messaging 18 Emulation 19 role in IT outsourcing 20 Supplier s approach to 22 Investments in 28 challenges and opportunities 32 Implications for buyers 35 Implications for suppliers 36 Implications for industry 38 Appendix 39 Glossary of terms 40 References 41 Page no.

3 The Impact on Outsourcing report will have over 40 pages of insightful information Supplier challenges and opportunities implementation supplier investments Scale enablement through Defending the franchise Implementation case studies SaaS 1 SaaS 2 SaaS 3 SaaS Integration Platform Web Interface Proprietary Composite Platform Functional Area Functional Area Functional Area Service 1 Service 2 Service 3 3

4 simplifies linkages between IT systems and the business processes to better align the business with IT BUSINESS PERSPECTIVE Business event New employee hired New employee hired Business user Common interface APP 1 APP 2 APP 3 APP 4 HR system Benefits SAP Payroll HR Benefits Service GL Payroll IT Infrastructure IT Infrastructure Appropriate Appropriate applications applications are are called called through through the the layer layer to to provide provide consistency consistency and and a a common common look look and feel to all s and feel to all s 4

5 implementation can take multiple forms High (easy) Low (hard) Description IT-business alignment Interoperability Ease of implementation Legacy Wrapper Building an abstraction layer on an existing software application to offer it as a in an environment Service- to- Service Defining s in a peer-to-peer configuration, avoiding the need for a central registry Proxy Messaging Shifting integration task to the messaging platform by creating a messaging that reformats messages between applications Emulation Building a proprietary wrapper with an interpreter on top of existing applications to offer an -like solution 5

6 Outsourcing suppliers have started reacting to in a variety of ways objectives Rationale Examples Buyer lock-in Proprietary implementation of as a part of an outsourcing package (based on the emulation model as described earlier) can drive further customer lock-in with the outsourcing supplier Branded solutions Client-specific 80/20 principle-based (often proprietary) solution that allows taking immediate advantage of key benefits most important to a client business; often serves as an intermediate step to full-scale implementation Industry-specific solutions Defend the franchise Outsourcing suppliers with existing franchises invest in to ensure future play of their products and minimize the effect of on their existing implementations Enterprise software vendor s solutions Enable scale allows hosting business solutions and s for multiple businesses on a shared infrastructure, thus reducing costs becomes actively used by suppliers in horizontal BPO offerings as an enabler and a platform for business s Software-as-a-Service Application integration The modular nature of can make it an ideal way to effectively rearchitect enterprise systems Use of Web Services for implementation also has the added benefit of enabling Web access for applications that may not have offered such functionality previously System integrator s platforms 6

7 Get the answers today that lead to tomorrow s success Everest Research Institute has the resources, experience, and capabilities to provide companies with the strategic intelligence, analysis, and insight that are crucial to making the right decisions in today s outsourcing marketplace. With the vision of our leadership team, the personal commitment, and indeed, the passion of our professionals to deliver real value to our clients, our organization is unsurpassed in its ability to guide your company s future success. Everest Research Institute Two Galleria Tower Noel Road, Suite 2100 Dallas, TX U.S.A info@everestresearchinstitute.com Everest Group 150 E., 52 nd Street, 16 th Floor New York, NY U.S.A Everest India Ground Floor, Tower A Unitech Business Park South City - I, Gurgaon National Capital Region India Everest Australasia Level 6, 90 Mount Street North Sydney, NSW 2060 Australia Everest Canada The Exchange Tower 130 King Street West, Suite 1800 Toronto, ON Canada M5X 1E Everest UK 83 Baker Street London, W1U 6LA United Kingdom Everest Group Atrium Building 3 rd Floor Strawinskylaan ZX Amsterdam Everest Australia 409a Wattletree Road East Malvern Melbourne, VIC 3145 Australia