Why most Managed Service IT Companies, Cloud Resellers and their clients are looking at outsourcing options for their critical IT Services. http://kryptostech.com/the-outsourcing-it-decision/

1. THE OUTSOURCING IT DECISION
By Kryptos Technologies

2. Why most Managed Service IT Companies, Cloud Resellers
and their clients are looking at outsourcing options for their
critical IT Services
At the beginning, quality assurance offshore outsourcing started as more of a cost saving initiative, with the
customers outsourcing a few simple applications to one or more vendors. As the customers began to see success
with this model, they started outsourcing more complex applications and very quickly the process evolved in the late
90s to customers outsourcing business critical applications and business processes. When we analyse this evolution
in a little more detail, in the initial stages of outsourcing, the customer employees who were involved with the
applications being outsourced, generally moved up the ladder to shoulder bigger responsibilities within the
customer’ organization, typically in business critical areas and also spend some time in supervising the vendor
personnel deployed in the outsourced engagements. Because of the close relationship between the employees of
the customer’ organization and the employees of the vendor organization who started in the offshore engagements,
no ethical issues were observed either at the client end or at the vendor end.
After various survey suggestion the biggest challenge IT executive face is maintaining infrastructure, lack of staffs,
find the right specialised staff with right skills to cloud computing, information security, data analytics, data centre
etc.
Skill Crunch:
According to Deloitte Access Economics, Australian Computer Society and Cisco Global Cloud found that the IT and
data centre will grow from 259 in number at the end of 2015 to 485 by 2020. By 2020, 92 percent of workloads will
be processed by cloud data centre; 8 percent will be processed by traditional data centre. Overall data centre
workloads will be more than double from 2015 to 2020; however, cloud workloads will be more than triple over the
same period. The workload density (that is, workloads per physical server) for cloud data centres was 7.3 in 2015 and
will grow to 11.9 by 2020. Comparatively, for traditional data centres, workload density was 2.2 in 2015 and will grow
to 3.5 by 2020.
By 2020, 68 percent of the cloud workloads will be in public cloud data centres, up from 49 percent in 2015 and 32
percent of the cloud workloads will be in private cloud data centres, down from 51 percent in 2015 (CAGR of 15
percent from 2015 to 2020).
By 2020, 74 percent of the total cloud workloads will be software-as-a-service (SaaS) workloads, up from 65 percent
in 2015. 17 percent of the total cloud workloads will be infrastructure-as-a-service (IaaS) workloads, down from 26
percent in 2015. 8 percent of the total cloud workloads will be platform-as-a-service (PaaS) workloads, down from 9
percent in 2015.

3. Outsourcers as Trusted Partners:
However, as rivalry increments, many organizations can't discover the aptitudes they require: specialist co-ops have
likewise been enlisting intensely, and many offer positions with higher pay rates, better package, more open doors
for difficulties and progression, and abroad open doors that individual buyers of IT just can't coordinate.
Outsources are building focuses of magnificence in the abilities that are identified with key change ranges. This
dynamic implies that, in acknowledgment of the focused and testing market for IT aptitudes, a developing number
of organizations are swinging to outsourcing – both for its innovative advantages and as a method for guaranteeing
that they will dependably have entry to a pool of gifted authorities with the capacity to guide that advanced change
after some time.
Besides, on account of the adaptability of cloud conveyance models, those outsources may simply be overseeing
access to outsider cloud applications, or running them in the interest of the end-client association.
Such environments are managed to the customer’s business objectives, and are often designed with built-in
integration, reporting and monitoring capabilities that ensure they operate in support of business governance
objectives. Thanks to continuous improvement programs in place at most cloud providers, many cloud systems
achieve a higher level of compliance with corporate controls and regulatory compliance than businesses would be
able to implement internally.
Those customers also benefit from the fact that they do not have to be burdened with the day-to-day administration
of those systems. And, since cloud applications are run on shared infrastructure that typically offer high levels of
scalability during times of surging demand, outsourcers can easily add capacity to deal with peaks in business traffic
– with no interruption to business processes.
The resurgence of outsourcing has been mainly clear within the mid-marketplace, wherein companies are less
confused by means of inflexible legacy systems and tactics than huge organizations. Such organizations are small
sufficient to trade their direction, but large sufficient to be able to participate in ongoing relationships with provider
carriers whose outsourced packages and enterprise methods becomes essential to the organisation’s survival.
As the ones outsourced offerings become more and more feature-wealthy, mid-market agencies will lean on them
an increasing number of as they are looking for to increase their enterprise into new markets, enhance collaboration
with deliver chain companions, and enhance customer support through leveraging new technology. Enterprise
surveys confirm the significance of those modifications to mid-market organizations. Exploring the motivations of
agencies in adopting cloud offerings, the solar winds IT developments document 2016 determined that 76 percent
of mid-market organizations rated cloud technologies as vital to their lengthy-time period commercial enterprise
success.
Midmarket organizations were quicker than little or substantial organizations to influence cloud service to relocate
applications and databases. They were the well on the way to influence cloud service for capacity (44 percent).
Somewhere in the range of 32 percent of respondents supported this with cases that they were especially pulled in
to cloud advancements' capacity to enhance application dependability.

4. Curiously, mid-market organizations were less worried than little or enormous organizations about conveyance
related concerns, for example, building versatile administration alternatives, lessening the cost of foundation, and
dispensing with obligation regarding basic framework. This proposes mid-market organizations see outsourcing
suppliers not similarly as product suppliers of advancements, but rather more significantly as vital accomplices for
long haul connections.
Selecting the Right Partners:
Selecting the right partners is critical for a business to ensure that their cloud transformation is both relevant to their
current needs, and executed in such a way as to support the growth of the business well into the future. The market
is awash with service providers all making claims about their capabilities, and businesses need to do extensive due
diligence with any potential provider to make sure they are both a good cultural and strategic fit.
This process includes addressing questions such as:
1) What technologies and services are critical to the company’s forward strategy, and how will the outsourcer
provider them?
2) Do they demonstrate successful similar deployment?
3) Do they have comprehensive disaster recovery plan?
4) Does the outsourcer have enough staff to both support your business on an ongoing basis, and to react to
emergencies as they come up? If not, do they have support networks to ramp up capabilities quickly if necessary?
5) Do they know the ins and outs of your industry vertical? Who else are they supporting in the industry, and
how?
6) What type of relationship do you want to have with your provider, and do they have a similar mindset
around issues such as staff secondment, 24x7 support, and so on?
7) What security, backup, data stewardship and other processes are in place to protect your confidential and
business-critical information?
8) Do they have service level agreement and strong history of service level performance?
9) Can they configure the solution to meet my needs?
10) What kind of ROI can you expect from the relationship, and how and at what point will you review the
relationship to measure progress against those goals?
Careful research will ease the process of narrowing down your list of potential providers – and summarising your
search in a series of clearly elucidated business benefits that you can take to the executive.
Indeed, executive support can be one of the hardest parts of the cloud transformation, with 59 percent of midmarket
respondents to the survey saying that convincing business decision-makers of the need for, and benefit of, cloud

5. services was among their biggest challenges. That compares to 41 percent and 40 percent of those from large and
small companies.
Mid-market companies were also more concerned than other-sized companies about security and compliance issues
(76 percent versus 69 percent of large and 64 percent of small businesses).
Conclusion:
Outsourcing has dependably had a scenario to tell – however with cloud-based services offering more adaptability
and power than any other time in recent activity, that story has turned out to be more fascinating than any time in
recent retention. By utilizing the force of key outsourcing, organizations of any size can both bypass the difficulties
of the market's incessant abilities deficiency and position themselves for another level of key development.
With support from officials and the quality of a nearby and viable outsource, today's offerings permit outsourcing
suppliers and their clients to invest less energy taking a shot at key strategic business capacities – and additional time
cooperating on the things that matter most to the business: productivity, gainfulness, development and – most
critical of all – consumer loyalty.