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June 2019

XaaS models are reshaping the future of outsourcing

Traditional IT outsourcing has played a vital role in empowering enterprises to embrace innovative technologies and make use of skilled external talents. However, the seemingly unstoppable rise of “anything-as-a-service” (XaaS) cloud models, which has already transformed how many businesses operate, is in the process of upending the IT outsourcing environment. From easy scalability, improved cost management and almost unlimited flexibility, it’s not hard to see the attraction of XaaS delivery systems. “With the growth of ‘as-a-service’ cloud models, there has been a shift in the management of IT operations and infrastructure. This, in turn, has led to altered cost structures and fundamental changes in the competitor environment,” says Andrew McCreath, director of enterprise field development at datacentre company Equinix. For example, the appeal of a software-as-a-service (SaaS) payroll solution that can reduce capital expenditure and optimise operating costs is likely to be greater than the attraction of a traditional payroll ...

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