Cloud computing IT outsourcing contracts triple

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Cloud computing IT outsourcing contracts triple

Karl Flinders

The number of global IT services deals with a cloud computing element have tripled since 2010, according to research from IT outsourcing consultancy Information Services Group (ISG).

ISG used its TPI index to analyse IT outsourcing deals and found this year will see 300 IT contracts awarded which feature cloud computing services. This compares with 110 in 2010 and 220 in 2011.

Stanton Jones, emerging technology analyst at ISG, said the move to standardised platform-based services which are difficult to customise is a step-change for the IT services sector. 

“Cloud services, especially shared platforms, are a new terrain for providers and clients alike, as they are highly standardised and can’t be easily customised — the antithesis of traditional outsourcing,” said Jones.

He added that the greatest potential for growth and momentum is in software-as-a-service (SaaS) – especially for human resources (HR), customer relationship management CRM) and collaboration. 

Jones said infrastructure-as-a-service (IaaS) will lag behind SaaS in enterprise-wide adoption.

ISG said in earlier research that service providers reported that cloud computing is now a feature of at least 25% of their pipeline opportunities.

“Clearly, cloud is a disruptive trend in the enterprise and we predict this disruption will not only continue, but accelerate, especially for the traditional IT service providers.” Jones said. 

“From well-known software vendors to more nimble mid-market players and emerging pure-play infrastructure and SaaS providers, traditional IT service providers face significant pressure in nearly every direction.”

In a recent interview with Computer Weekly, BG Srinivas, global head of financial services at Indian IT services firm Infosys, said the recession had driven customers to look for more flexible ways of paying for services. 

As a result there is interest from customers in Infosys platforms as service. Infosys has a range of Edge products. These are platforms delivered through a private cloud. They are designed as a service for a particular part of a business.

Recent research of IT buyers carried out by Computer Weekly/Techtarget revealed that, in Europe, only 21% of businesses have outsourced cloud development and only 18% in North America.


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