Cloud Computing & Outsourcing

I read an article this week by Bob McDowall of Aite Group asking the reader “is cloud computing taking over Indian outsourcers?” Personally, I think it’s too soon to definitively say that the cloud is a threat to outsourcing as we currently know it, but nonetheless, it’s an interesting thought. Over the next few years, I do think cloud computing will continue to make an impact on the IT industry and eventually shake up outsourced services because it clearly is changing a company’s capacity to use IT. Since the cloud covers infrastructures, platforms, applications, and BPO services, it very well may construct a new model for IT outsourcing. There’s also the thought that cloud computing could be a more cost effective outsourcing method… and we all know that change within a company can be directly driven by the possibility of cost savings!

With all this said, this could also be an opportunity for current Indian outsourcers to expand their services and also take to the cloud. However, according to McDowall, who recently touched upon this topic in his article “Cloud Computing: Is it a threat to Indian Outsourcers?”, outsourcers should be sure not to merge their current offerings with cloud offerings. This, says McDowall, is because “while delivery of cloud computing services may be personalized, its services and service strategy is not collaborative. Outsourcers may consider using cloud computing as a means of selling non-core applications and services, which can impede the financial incremental benefits of major outsourcing contracts.” Though McDowall also states that if “cloud computing can position itself as an element of strategic information technology planning, then it will start to make more substantial inroads into traditional outsourcing.”

So what are your thoughts? Is the cloud the next great thing in outsourcing?

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