The Impact of Cloud Computing on Outsourcing Services

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Cloud computing is a web – based application that allows a user to access certain information from a remote system that is installed in the cloud while outsourcing service providers are usually located overseas. This is what makes them similar and different at the same.

Changes come unexpectedly and happen every day. What is in vogue now is gone tomorrow. Most changes are triggered by new innovations introduced in the market. Most businesses take advantage of technological changes as long as they will profit from it and cloud computing which focuses on IT supported business process services will have a big impact on business outsourcing services. Most companies who are shifting to cloud computing are affecting the companies’ abilities to use IT that will be proliferating in different directions in the market.

Most of the SaaS software available in the market are either offered for free or at a very low costs and enable companies to compete with big and small businesses allowing more room for profitability without additional costs on their working capital, relieves them from employing IT maintenance staff, scalability, pay only what is consumed and companies can immediately switch to other available applications as they want to. Softwares like SaaS can cause outsourcing to move to the cloud in the future.

Cloud computing provides tremendous benefits to companies but in spite of these advantages impediments like security matters, customization and integration are hindering the rise of cloud – based outsourcing services. Although most businesses will be turning to new technologies and will finally get rid of the old models, what companies do not know is that technology itself is not ready for major changes when it comes to paid applications to the cloud.

The impact of cloud computing on outsourcing will create hostilities and the impact will be great as well because the use of IT maintenance staff will be removed resulting to massive opportunities for customers to optimize their current financial capital. Removal of the indirect processes, providers are able to facilitate the direct use of real time data processing that will substantially increase the scope, speed and efficiency of work in spite the presence of several applications, platforms and technologies.

Applications needed by the companies are readily available for their consumption in the cloud relieving them from developing their present applications. On – premise, private cloud, and public cloud services will influence buyers to get away from their present long – term contracts to short – term contracts allowing them to be more flexible in shifting from one new service to another.  The changes of outsourcing contract methodologies by the buyers are caused by these cloud – based application services.

Furthermore, more intricacies offered by the service providers will extremely change the outsourcing businesses by moving the buyer’s IT software and hardware into the cloud encompassing most of the outsourcing businesses IT drivers.

Another impact of cloud computing is when the outsourcing businesses employs cloud computing in doing their services causing the improvement and immense changes on the way outsourcing service providers price their services. Most outsourcing businesses will be anticipating their bills to come the way they used to and changes caused by cloud computing are presumed to initiate a lot of opposition from the outsourcing providers in the next five years.

When selecting an IT outsourcing provider buyers should consider the services rendered from the cloud before allowing outsourcing providers to take over their IT software and hardware and reduce the risks caused by cloud – based services.

Buyers should understand that the creation of private clouds is a complicated process and it is essential that outsourcing providers are able to look into their systems before allowing IT providers to take over their IT drivers. It is also the responsibility of the buyers to see to it that the IT providers they are selecting has the ability and are highly trained in research and development, management of infrastructures, application migration, systems integration and testing.

Buyers should also take into consideration when selecting from the diverse offers of cloud service providers if they have the capabilities in managing long – term IT advanced innovations towards the different cloud environment. The ability of the provider in assimilating and compiling numerous cloud services including its management, safety, compliance as well as the abilities of cloud – burst in the data centers of the provider are some of the essential factors the buyers should be looking into. Other elements the buyers should consider about the service providers are their skills in working with other systems, as well as their strategic collaboration with cloud technology drivers and operating systems partners.

In order to avoid the hazards in selecting IT outsourcing service providers, buyers should first become at ease with the basics of cloud computing before taking advantage of its benefits without knowing its effects on their outsourcing businesses.

The aftermath of SaaS and cloud computing will have a great impact in outsourcing businesses that will take a few years in settling down the conflicts between the IT and the business outsourcing providers. Since this is a new technology for both IT and business outsourcing service providers where IT providers have the leverage in taking over the business IT software and hardware is something the business outsourcing service providers need to think about and how these changes in technology can improve their business market value.

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