Cloud IT to Impact the Outsourcing Market Through 2015

Cloud IT to Impact the Outsourcing Market Through 2015

Fifty percent of new outsourcing deals will be significantly Cloud enabled by 2015, according to a newly released report from Saugatuck Technology Inc., titled “The Cloud and Business Services: Key Trends and Directions Through 2015.”

Saugatuck Technology notes that the IT and BPO services market is undergoing a period of deep structural change and this is bringing change in the market positions and business models of traditional services providers.  Findings from the report show that Indian providers will be some of the most aggressive innovators in PaaS through 2013. By leveraging Cloud delivery models and client trust these providers will attempt to break their linear headcount-to-revenue business models. “The Cloud and Business Services: Key Trends and Directions Through 2015,” also indicate that through 2013, pure-play Cloud consulting companies will continue to enjoy superior market growth.

“Non-traditional” service providers with specific vertical and business IP will also aggressively enter the Cloud Business Services market during the same period.

Technology platforms (enabled by Cloud IT) are the latest value lever for services leadership and according to the report adoption will rapidly continue this year. Saugatuck Technology has also predicted that Business Process Utilities will emerge as the preferred means of consuming horizontal / commoditized BPO offerings by 2015. Also, the primary users of PaaS will be system integrators through 2015. The research firm attributes this to the aggregation of demand, greater resources and expertise, and openness to risk-taking absent in most enterprises.

Elaborating further on the current business environment Saugatuck Technology says that critical business change is occurring across supply chains, vendor / provider relationships, and customer relationships. This change is happening partly due to the adoption of Cloud IT and Cloud Business models, and also because of globalization and new sourcing innovations such as Business-Process-as-a-Service (BPaaS), Business Process Utilities (BPU) and Crowdsourcing.

Looking forward, the traditional systems integration services market will decline in terms of overall market opportunity, and this will give way to new services and channel opportunities due to the Cloud.

In the coming years, Cloud services providers will reap rich rewards as they adopt Cloud IT and Cloud Business, adds Saugatuck Technology.

By Anuradha Shukla

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