The evolution of IT outsourcing in the field of cloud computing

Source: Internet
Author: User
Keywords Cloud computing IT outsourcing

Every time we talk about outsourcing, we all may have painful memories. The outsourcing of software development projects has been a popular sunrise industry in recent years, but there are many problems with it outsourcing, such as: Which side decided which platform to use? (I'm sorry, it's customer-determined); Will the customer check the progress of the work every day? (Unfortunately, not at all); Is it possible to generate status reports automatically? (Sadly, not).

Modern IT organizations are almost an essential part of the package, but many are not as perfect as they might think. Over the past 12 months, we have conducted a research on outsourcing to 530 technical experts. 29% of the people involved in the survey, the results show that most IT companies have used outsourcing, but they also stressed that it outsourcing management is very important.

On the one hand, IT outsourcing business growth trend, near 6-tier IT outsourcing is a key function of outsourcing, only 1/4 of the administrative and management nature of the function is not outsourced, other functions are seeking to outsource, enterprises increasingly rely on outsourcing companies, but on the other hand, because of the lack of effective IT outsourcing supervision and management mechanism, the risk of outsourcing failure is increasing , and sometimes even disastrous consequences.

According to an information weekly survey, all types of outsourcing are on the rise, from traditional hardware services, cloud applications and sophisticated data center operations outsourcing. But there are also serious problems, with more than half of respondents saying the quality of outsourced delivery is lower, while cloud computing and SaaS are more popular, and most say the quality of cloud delivery is better, with 44% of people planning to expand the use of cloud computing. But cloud computing is just as problematic, with nearly 60% of respondents saying they can only rely on cloud providers to monitor their own performance.

Most IT departments set the right goals for outsourcing: freeing up staff to invest in more valuable strategic innovation, and better aligning IT staff and costs against business trends. But they also have concerns about unforeseen costs, communication issues and managing subcontractors ' time requirements.

Cloud Management challenges

Cloud computing blurs the boundaries between traditional outsourcing and internal operations, and examines it's management and control strategies. Most (55%) companies that use cloud computing and SaaS products think they are getting better quality, but interestingly, 1/5 of companies say cloud/saas provide better quality but cost more. Cloud providers have long claimed that the cost of cloud computing is lower, and it seems that the problem deserves further study.

59% said outsourcing support was not enough to support the company, with 13% per cent saying outsourcing costs were higher and quality was lower, and only 28% said outsourcing improved the quality of support. In user-oriented application development, more than half of the people think that outsourcing reduces quality, and cloud satisfaction is relatively high, so the cloud growth momentum than outsourcing stronger.

Unfortunately, it has not yet been well prepared for cloud growth, and only 17% of respondents said they could directly monitor the performance and uptime of Cloud and SaaS applications, while 1/4 only monitored key projects, while 59% per cent relied solely on suppliers to monitor themselves. It leaders may also have no experience in cloud management, and if managed with the experience gained over the past 10 years in traditional IT outsourcing, that would be a big problem.

Outsourcing consultant David Rutchik said: "In the traditional outsourcing field, we see it does not do well, outsourcing vendor management has been talked about a lot, but more reactive (passive) management, rather than active management."
Over the past year, 29% of IT departments have ended up outsourcing contracts with outside vendors, but it is not easy for cloud and SaaS providers to get rid of them.

Rutchik says cloud monitoring and management is critical, but at some point it shouldn't be done, and SaaS vendors tend to get in touch with business units, and earlier this year our SaaS team found that it didn't have enough time to decide whether to use SaaS. Rutchik see it being pushed to the front end of SaaS deployments, to provide the right governance framework, validate performance, create interfaces, and so on, IT departments should ensure that SaaS meets the company's architecture, from bandwidth to desktop, but once the application is in a stable state, the business unit is the right person to take over management. Because they can immediately feel the impact of performance.

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