Cloud Computing Enabling the Outsourcing of IT and Why it’s a Good Thing
It is an indisputable fact that IT functions such as help desks, tech support, and even customer care operations, have a long history of outsourcing. And it should be so. Since, they have enabled organizations to extend their in-house capabilities, without committing for long-term capital investments, and various other benefits.
Although the transition to Cloud IT Service in Dubai is still in the pilot stage, the outsourcing industry is already feeling its impact as more clients are shifting from traditional IT to Cloud IT Service in Dubai. The shift is also affecting supplier behaviour and posing unprecedented challenges as individuals and industry migrate from traditional sourcing models.
Is this Beginning of the End?
According to research from Computer Economics, outsourcing delivery will begin to include multiple cloud elements that constitute more than 10% of the average outsourcing contract. And the interesting fact is that this figure is expected to double the average outsourcing scope in coming 5–7 years. No doubt, the figure will also depend on the client and the workload. But, today’s outsourcing clients spending pattern is a perfect example of this substitution effect.
Overhaul of Outsourcing Methodologies
Cloud Computing has redefined the role of various IT functions, but experts indicate that it will completely change the nature of outsourcing contract methodologies. The customers will choose short-term contracts over long-term, to have the flexibility. There will be a very slight change in the charge structure that current outsourcing put in their services.
The customers will gradually come to expect a cost structure that works on a natural forecasting unit which will be linked to buyer’s revenue items, or usage patterns.
The Sudden Transition to IaaS Providers
The newly launched IT-related businesses in Dubai are feeling the heat of cloud computing and have refocused their aim at enterprise-level infrastructure-as-a-service (IaaS). These services will rely on innovation like private cloud hosting and off-site consulting. The major share of outsourcing companies specializing as cloud solutions providers since that would be the best choice for customers. The service providers need to develop applications for non-core processors, as applications for non-core processes, since applications will be available on the cloud.
The IaaS companies will have a few challenges, though since security is paramount as important company information. Remember, encrypted cloud storage is as important as the cloud since it helps a company. The cloud providers make a deal to have zero ideas of the company’s information and all that can be given with a court’s order. The user will have to give the login information to access anything.
Challenges faced by Customers
The transition to the cloud is not just a testing time for outsourcing companies, but will also present a lot of risks to outsourcing customers. The organizations are already coming up with new platforms for their technology needs. The professionals employed in sourcing and supply management will face disturbances in service. The outsourcing agreements have begun recently, which are revolving towards low customer resource commitments.
The biggest challenge is finding reliable cloud it services in Dubai, and by reliable I mean an established organisation which is dedicatedly working on a single platform, like Microsoft Azure. Well, that’s a topic for a whole different piece of content that I am working on and will be sharing soon.
