Will Cloud Computing make Outsourcing Outdated?
The last few decades have proved outsourcing to be an ideal option for many
industries, allowing them to manage their non-core tasks in an efficient and
affordable manner. Advanced technology and manpower expertise have allowed
outsourcing companies to offer unparalleled proficiency in the services they handle.
Today, everybody is talking about cloud computing – the new business model that
has changed the way organizations operate and how the provide services. In fact,
value-added outsourcing now has an important new role to play as cloud computing
continues to increase the complexity of business services.
The Cloud Platform
Businesses of any size can have access to advanced technology with cloud
computing. Thanks to cloud computing, businesses can use an IT resource on a cloud
platform – they do not need to have the capital to own that resource. For instance,
the services that IT major Accenture offers on its cloud platform are Big Data
Analytics, Data Decommissioning, Infrastructure as a Service Provisioning and
Management and Testing-as-a-Service (TaaS). IBM SmartCloud and Apple’s iCloud,
So the cloud computing model offers easy, on-demand network access to a shared
pool of configurable computing resources including networks, servers, storage,
applications, and services that can be rapidly supplied and released with minimal
management effort or minimal interaction with the service provider interaction. In
most cases, a company simply needs to provide a credit card number to these
providers to access their cloud platform in a matter of minutes.
There are different types of cloud computing services available to suit different
needs. While some like social networking platforms cater to individual users who
want to store photos, documents, and videos, others are meant for businesses that
need extensive platforms to develop IT applications.
Why Enterprises rely on Cloud Computing
With cloud computing the hardware
and software requirements at user
side decreased to a great volume.
The only thing that is required to
run cloud computing is an interface
software, which can be something
like a web browser.
Research and the London School of
Economics Outsourcing Unit across
628 enterprises, confirms the value
of cloud computing in various
aspects of the enterprise. The
major highlights of the survey report are:o
Cloud can cut down the over all cost of running business applications
Quicker implementations of business applications
Facilitating a virtual/distributed organization
Enables to increase business focus on core activities
Cloud computing allows documents to be accessed from any device and from
any parts of the world, for increased mobility. Furthermore, there will be
increased productivity and fast exchange of information.
Adaptability to changing work environments is another advantage. Many of
today’s professionals work on the road, requiring mobile connectivity. Many
companies are now in to BYOD (bring your own device) revolution for better
Provides increased storage, so there is no need to worry about limited
It is possible to implement cloud computing in matter of minutes. Setting a
password and selecting devices to connect the network is only required, to
start up the application.
The most striking advantage of cloud computing is cost effectiveness. As the
software is made available online, there is no need to install it again. Free
services as well as paid services are available. Those selecting paid services
should make their payment on monthly or yearly basis. There are plans
without any contract period that allow making payments, when the service is
Outsourcing and Cloud Computing
However, cloud computing services involve challenges such as security, data
integrity, service availability, and many more. Hence the role of traditional
outsourcing is not just going to disappear overnight, though it will mean certain
changes. The role of BPO companies will have to evolve into providing their clients
with advice on the proper design of their business model and helping them take
advantage of their interactions with cloud service providers.
Today, businesses want to adopt the newer technologies and methods of doing
things as they feel that not doing so would make them obsolete. Transformation to
cloud computing will take a long time as in the even in technology marketplace,
many companies have invested heavily in IT and outsourcing. Also, most IT and
business process outsourcing providers are well aware of the implications of cloudbased services.
Though cloud computing promises simplification of services, it sometimes makes
things complicated as IT executives have to manage multiple external cloud
providers as well as an internal IT environment. Experts say that the cloud will give
rise to multiple classes of business process outsourcing services and providers
such as utility providers, business function providers, and integrators and valueadded business designers.
Utility Providers - Suppliers of IT power or basic business process functionality
with focus primarily on efficiency and cost
Business function providers - Niche providers with in-depth expertise in
specific functions such as sales, HR and customer support
Integrators and value-added business designers – companies that help their
clients transform into “cloud enterprises”
The Future - A Cloud-based Outsourcing Environment
Companies should plan for a future environment where they can mange their IT and
business operations well. They need to carefully assess the risks involved with
deploying new technologies. The role of outsourcing is changing. While a specialized
BPO company may continue to cater to their unique market, larger companies
would most likely reinvent their service models to look more ‘cloud-like’. In short,
the success of outsourcing will depend on a skillful integration of the cloud services
into their business models.