Cloud Computing: Enterprise IT Outsourcing: 10 Ways Cloud Services Are Changing the Game
On-Site Labor Moves to SLAs
Cloud systems and services push outsourcers to move away from labor arbitrage to becoming IT consultants or partners. The cloud also shifts customer focus away from staffing to service-level agreements (SLAs). With IT systems providing a more cost-effective solution than any outsourced labor force, the outsourcers need to demonstrate higher levels of technological expertise, not just lower-cost work.
Obtaining computing power from somewhere other than a privately owned data center or on-site room of servers is an increasingly big business. Gartner Research has predicted that, for the first time, the worldwide IT outsourcing market will surpass a whopping $250 billion in 2012. IT platforms available through cloud services are an important factor in this growth. Here's a relevant quote from Gartner's latest market report: "The fastest-growing segment within the worldwide ITO market is cloud compute services, which is part of the cloud-based infrastructure as a service (IaaS) segment. Cloud compute services are expected to grow 48.7 percent in 2012 to $5 billion, up from $3.4 billion in 2011." For startups in particular, subscribing to cloud IT services has never made more sense, in terms of capital expense, security and operational logistics. In tandem with Fremont, Calif.-based IT outsourcer iGATE Corp., eWEEK offers this slide show of key data points on why cloud computing is impacting the IT outsourcing business.