• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » ITO 2.0: Sending Work Where the Best Brains Are

ITO 2.0: Sending Work Where the Best Brains Are

May 14, 2008
Outsourcing Journal

Harnessing the collective intelligence of people has the potential to change everything. Today, teams numbering in the thousands are creating encyclopedias, jetliners, operating systems, mutual funds, and many other items. Perhaps the best example is the rise of Wikipedia, which harnessed the collective intelligence of people around the world to produce a reference that rivals the Encyclopedia Britannica.What if companies applied the same principles to the world of work? What if every business could leverage the collective intelligence of its employees, partners, suppliers and customers to build better products and deliver better service? It's exactly this vision that motivated Michael Rocha and Timothy Chou to found Openwater Networks.
Openwater has built a social network for work, something it calls a service network, to connect the islands of experts and expertise. Openwater Networks partnered with Augmentum because it shared the same vision of using a service network to change the way they work together, which Frank Yu, president and COO of Augmentum, and Timothy call "IT Outsourcing 2.0." The result: "Together we were able to build innovative software that would have cost us 10 times more money and 10 times more time if we had done it under ITO 1.0," says Chou.
All thee men had a lot of experience with the first generation of outsourcing. In fact, Rocha started Oracle's India operations. (Oracle was one of the first major software companies to locate operations in India.) Chou says ITO 1.0 "was largely a move to low-cost labor countries. Cheap labor was the central tenet."
But ITO 2.0 is not about sending work to the cheapest guy, in Chou's view. Instead, "it's about moving the work to where the best brains are."
As any good software company does, Openwater used its service network to build the service network software. That network today consists of developers in London, Romania, Olathe (Kansas), San Francisco, and Shanghai.
Source: Outsourcing Journal, http://www.outsourcing-journal.com

    RELATED CONTENT

    RELATED VIDEOS

    Global Supply Chain Management
    KEYWORDS Global Supply Chain Management
    • Related Articles

      The Automotive Supply Chain: Where Only the Best And the Tough Survive

      Where in the World? The Best Locations for Supply-chain Management Facilities

      We Know Where the Material Is, But … Where's the Payment?

    Outsourcing Journal

    Performance Metrics Are important. If You Ask the Wrong Question, You Get the Wrong Answer, Then Act Accordingly

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • Businessman using AI agent system on laptop computer.

      AI in Supply Chain Can’t Succeed Without Foundational Systems

      Artificial Intelligence
    • A LARGE CYLINDRICAL OBJECT SHRINK-WRAPPED IN WHITE PLASTIC IS LOWERED BY CRANE ONTO A FLAT BED TRUCK ON A DOCK

      AI Boom Has European Buyers Paying Extra to Secure Gas Turbines

      Technology
    • Close-up hands of unrecognizable man holding and using smartphone standing on city street.

      Five Supply Chain Security Risks Hiding Inside Your Mobile Apps

      Supply Chain Visibility
    • 016_ai_and_data_transformation_in_distribution_v1-(540p).png

      Watch: AI and Data Transformation in Distribution

      Artificial Intelligence
    • DARKENED RACKS IN A WAREHOUSE CLUSTER AROUND A GLOWING ORB

      How to Know If Your Facility Is Ready to Automate

      Supply Chain Finance & Revenue Management

    Digital Edition

    2026 esg cover main scb q2 2026 cover

    SupplyChainBrain 2026 ESG Guide: ESG — The Supply Chain’s Biggest Secret

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Arkieva Blue Yonder
    Carton Cloud CoEnterprise Dassault
    Duravant E2Open General Logistics Systems
    Hy-Tek iGPS Korber
    Lyngsoe Procurability Quinyx
    SAP Sikick Systech
    S&P Global Mobility TADA TransImpact
    US Bank Werner Enterprises WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing