The IT industry has reported significant growth in business-provisioned, cloud-based products and services on the market that offer innovative solutions across all industries. Many experts believe these technologies are quickly becoming the most prominent source of IT outsourcing contracts, specifically for industries looking to increase efficiency and productivity through minimal investment in IT infrastructure.
As a result, IT services providers are focusing on adding cloud-based services to their lineups of products and offerings, to ensure they are in line with purchasing trends. Companies are demanding cloud-based solutions that allow for interoperability and connectivity across locations, devices and networks, without investing in an in-house IT department to maintain network management obligations. Instead, third party providers offer cost-effective maintenance of networks and cloud services, freeing up time and resources within the company for creative and niche-specific projects.
Index shows turn to the cloud
Information Services Group released its quarterly TPI index for the third quarter of 2012, finding that the number of cloud-related IT outsourcing contracts increased 120 percent year-over-year. About 25 percent of these contracts included cloud computing services, while all of the contracts were made in anticipation of accelerated growth and opportunities as a result of the partnership.
According to the index, software solutions designed for cloud-based environments are growing in popularity quickly, and third party IT providers of such services are dominating the outsourcing market. Often, these providers are able to not only offer network management capabilities, but even take over an entire department such as human resources for smaller companies with minimal demands.
Rather than requiring a heavily customized HR solution for the cloud, companies are turning to properly configured cloud-based applications that offer automated processes and require minimal attention apart from supervision from third party providers. Thus, businesses are outsourcing services, solutions and departments to providers in return for improved efficiency, productivity and profit margins.
Stanton Jones, analyst at ISG, explained that IT and HR are departments most companies are looking to simplify or outsource completely through third party intervention. Because the logistics of these sectors can be costly and time-consuming when not executed properly, experts are being called in to deploy modern solutions to complex problems. As a result, there has been heavy investment in communication and collaboration tools, and cloud-based IT service management is being reported across many industries.