Outsourcing Cloud Services Becoming Common

December 4, 2012

Many companies are choosing to outsource IT services, and cloud computing IT service companies are benefiting because of it, according to a recent survey by ISG.

“Cloud services, especially shared platforms, are a new terrain for providers and clients alike, as they are highly standardized, and can’t be easily customized – the antithesis of traditional outsourcing,” said Stanton Jones, analyst of emerging technology at ISG.

According to the study, more than half of respondents said their companies have at least a quarter of their applications based in the cloud and predicted the cloud computing sector will expand at a faster rate than traditional IT services.

An earlier report by Computer Weekly and TechTarget found that 21 percent of European companies and 18 percent of North American firms have outsourced their cloud computing services to IT companies. However, according to the ISG study, 27 percent of organizations now outsource their cloud-based services, three times as many as in 2010.

Jones said the Software-as-a-Service (SaaS) sector has the most potential for growth, “especially for human resources, customer relationship management and collaboration.” He added that Infrastructure-as-a-Service contracts are expected to fall behind SaaS investment.