Tuesday, April 20, 2010

Cloud computing is an outsourcing improvement

Companies have cited many reasons for their adoption of cloud computing services, such as cost and efficiency as well as a lessened impact on the environment, but one reason that does not often tend to be highlighted is the improvement in how IT is outsourced.

Writing for Information Week, president of Yeoman Technology Group, Michael Healey, notes that outsourcing is a large component of modern IT departments, but the methods of outsourcing employed are usually not optimised.

Citing the IW Analytics 2010 Business of Outsourcing Survey, Mr Healey writes that six of every 10 IT groups outsource some critical functions, with 25 per cent keeping such functions in house but outsourcing the rest. According to the writer, this represents an incentive for IT departments to embrace the cloud.

"Freeing up staff for more strategic initiatives is the most-valued benefit, just above cost savings and better alignment of IT staff and costs with business trends," he explains. However, the article also details the dilemma facing IT management of how to continue their best practice policies.

"Cloud computing blurs the lines between what had been conventional outsourcing and internal operations, and it will test IT's management and control policies," he says.

"But IT pros like what they're getting so far."

The satisfaction rates for those using cloud computing as an outsourcing tool far outweigh those employing more traditional methods, Mr Healey explains. Citing figures from the outsourcing survey, he notes that 55 per cent of companies who've adopted software as a service or cloud computing feel it is of higher quality than traditional in-house services.

Source: http://www.rackspace.co.uk/

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