The Outsourcing Market Leaders and the Cloud

Outsourcing Market Leaders

Cloud computing is revolutionizing the companies’ infrastructures. More and more companies are spending their outsourcing budget on purchasing cloud services. This helps them avoid hiring more people and save a fair amount of funds from their budgets. Research firms (including Gartner Inc.) have published figures that demonstrate the trend of cloud computing services in the IT outsourcing market.

On August 7th, 2012, Gartner Inc. said that out of $251.7 billion of total market of IT outsourcing, cloud computing services are the fastest-growing segment, having increased from $3.4 (2011) to $5 (2012). Currently, this is still insignificant when compared with the $251.7 billion market, but we can hope to see them as the leading area of IT outsourcing because of their high growth rate. Let’s take a look at some of the factors that have made cloud computing services so popular in the IT outsourcing sector.

Why Companies Prefer Cloud Services

  • No Need to Hire Extra Staff

This is a major advantage of using cloud computing services. The applications are handled by the cloud services providers; they are responsible for maintaining and repairing the applications. The company that uses them has no need to hire extra staff to take care of  these software applications.

  • Instant Deployment

Cloud computing services are readily available and they can be instantly integrated into a company’s infrastructure. The company only needs to subscribe to the services and then it can access them from any PC with an Internet connection. On-Premises applications need time to be installed on the company’s systems, they need to be configured according to the company’s requirements, so it takes time to bring them in the running condition.

  • Scalability

Cloud computing services are highly scalable. The company that uses them can easily require to the provider to increase the capabilities and functionalities of these services, if this is necessary. As these services usually run on distributed computers, adding more space and processing power is no difficult task. Also, everything is done dynamically, with zero downtime.

These are only some of the advantages of cloud computing services that justify the current trend of companies towards them. In the near future, it would be no surprise to see cloud computing services becoming the leading segment of the IT outsourcing market.

By Seth Bernstein

MIT
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