As cloud computing, the process of delivering and sharing applications online from a web browser, continues to grow in popularity, many service providers have been left wondering how it will impact on the traditional outsourcing model.
The concept of cloud computing has all the attributes to support a global outsourcing environment, eliminating hardware to lower infrastructure and energy costs, as well as offering the scalability to meet demand in an unpredictable global market.
We are experiencing a global delivery continuum, where many organisations are evolving from crude business process outsourcing (BPO) environments (a lot of lift and shift), to SaaS delivery, in order to optimise that environment, and deploy a cloud computing "plug-in" model.
Seeing through the clouds…
While outsourcing providers should be embracing the benefits of the cloud process, it’s worth noting that it is by no means a silver bullet to alleviate the challenges of all organisations. However, it does represent a tool that can be quickly added to the arsenal of IT solutions for many companies. Large organisations may have sufficient resources internally to accommodate routine business requirements, but should a need arise to quickly ramp up a business unit or product line, the cloud delivery model becomes a valuable tool, enabling agility. For companies of all sizes, that have a seasonal business or product line, accommodating peak demand periods without having in-house servers sitting idle at other times is crucial. Financial indications suggest that we'll start emerging from this economic slump in the coming months ahead, and companies need to be ready to scale-up their support infrastructures in a smart fashion to respond.
Cloudy competition…
Increasingly, buyers will reap the benefits of cloud delivery as more major providers enter the market. Many established providers with robust infrastructure, skilled staff and a legacy of delivering high quality services are finding their traditional markets saturated with competition. Cloud computing provides a logical emerging market that offers opportunities to grow their business. The scramble to offer more benefits at a lower price could well rival the marketing wars we see today in the automotive industry. This can only result in brighter prospects for organisations seeking cloud cover in an economic storm. Outsourcing for the sake of cheap labour will always generate some savings in the short-term, but these costs will soon return if you don't follow through with the improved processes and technology that allow for a global operating model. Simply shipping out your ‘mess’ for less is never going to make much of a difference to your bottom-line, and will often end up costing you more in the long haul. The bottom-line is that when an organisation moves into a global outsourcing model, it must transform the way its business deploys technology platforms and business processes if it is to generate real cost-efficiencies. Embracing the new developments in the cloud is a sure way to make an outsourcing experience work on a continual basis.
In summary, as the outsourcing industry goes through another transformation, driven by cloud computing, businesses will continue to depend upon the services of a skilled and trusted systems integrator partner. Experience really is invaluable when it comes to configuring the right computing environment that addresses unique business needs.
