How the Cloud Redefines the Outsourcing Model

How the Cloud Redefines the Outsourcing Model

Traditional outsourcing is a business model that has been in use for some time. Companies have transferred help desk and programming duties off-site in cost reduction moves. What is new is the blending of outsourcing with cloud services. This new paradigm in outsourcing is a trend that savvy CIOs will use to their advantage.

Application Services Providers Gain Ground

Figuring out what and how much to outsource is a key function of CIOs and CFOs today. Helping make that decision easier is the fact that long time IT software and hardware providers like IBM, Oracle, and others are integrating cloud capabilities into their products. Additionally, IT outsourcing (ITO) is developing into Infrastructure as a Service (IaaS). Combining cloud-based applications with remote server farms makes outsourcing entire IT departments possible. The increased efficiency and time and cost savings can be enormous.

Outsourcing IT Provides Security

Traditionally, outsourcing meant moving non-vital departments off-site, keeping mission critical departments and projects on-site. A primary reason for this was CIO and CEO reluctance to give up control and entrust data and services to outsiders. It is becoming more apparent that, in actuality, application services providers and remote desktop services can provide more security than an in-house IT department that may not have the resources or skills required to maintain compliance and security.

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