Cloud Computing: Enterprise IT Outsourcing: 10 Ways Cloud Services Are Changing the Game

 
 
By Chris Preimesberger  |  Posted 2012-08-20 Email Print this article Print
 
 
 
 
 
 
 
 
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.
 
 
 

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.
On-Site Labor Moves to SLAs
 
 
 
 
 
Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz
 
 
 
 
 
 

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