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Cloud Takes the Lead in the Outsourcing Arena

by: Sarah Joson

Wednesday, August 29, 2012 | Outsourcing News |

Cloud Technology vs Outsourcing

One of the latest trends in businesses is cloud computing technology. It is a tool that companies use not only for process and product innovation but also to gain competitive advantage as economies across the globe are still on the road to recovery.     

In an article posted at CloudTweak.com, Seth Bernstein shared major events in the Information Technology or IT outsourcing sector, particularly the cloud computing segment.

A report from research firm Gartner Inc. indicates that the IT outsourcing sector is valued at $251.7 billion and cloud computing is apparently the fastest-growing segment which reached $5 billion this year from $3.4 billion in 2011.

Evidently, the figures are dwarfed by the entire sector’s value, but with the cloud segment’s rapid growth rate, it is now considered a significant player in the vast IT outsourcing arena. Some of the factors that contributed to its growth are:

The cloud will be managed for you.
Instead of hiring additional staff or re-assigning designations, service providers will manage the cloud operation. Software applications will we updated by the providers, upgraded according to the specifications and needs of the business.

The cloud is readily available.
The stocks are limitless when it comes to the cloud. Providers have readily available bundles and packages that suit a company’s infrastructure. They just need internet connection and sizeable data storage units.

Size will not be an issue.
The size of a cloud computing operation can be easily adjusted accordingly. For business owners, they need to list down the applications and software that they need and create a cloud environment that best fits the business operation.

Even if there are still several challenges in the sector such as data security and operation downtime, the cloud’s tenacity has already been proven with its recent developments and rapid growth rate. It won’t be too long before it becomes the most outsourced process in the ITO industry.

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