IT Outsourcing Industry Goes Cloud: High Demand for Cloud Computing Professionals

07 June 2023

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IT Outsourcing Industry Goes Cloud: High Demand for Cloud Computing Professionals

Features

Table of Contents

  • Description

  • What is Cloud Computing?

  • IT-Based Outsourcing Businesses

  • Benefits of Using the Cloud for IT Outsourcing Services

  • Conclusion

Description

Cloud computing has been around for 2 decades and now almost all companies are opting to integrate it into their workplace. The main advantage cloud computing offers businesses is, reduction in the overall cost of using computation and resources, and possibility to scale dynamically as per requirement.

Practically all businesses are witnessing the endless possibilities of cloud computing. According to Allied Market Research, the cloud services market will expand from  $374,770 Million in 2020 to $1,620,597 Million by 2030; registering a Compound Annual Growth Rate (CAGR) of 15.8%.

Over the past few years, the IT outsourcing business has attempted to improve its approaches and models in its strive to deliver the best services to customers with complete accuracy. According to a Research and Market report, by 2025, the expected growth of the global outsourcing services market will be worth $818.846 Billion.

In this cut-throat competitive market, enterprises cannot entertain inaccuracy or delay in business processes. Therefore, outsourcing businesses require technology that can bring cost efficiency and time effectiveness.

This article will showcase some outstanding benefits the IT outsourcing market can leverage through cloud computing in the years to come.

What is Cloud Computing?

The cloud is a cluster of servers and other networking equipment housed externally in various data centers owned by Cloud Service Providers (CSPs). Cloud computing services offer a pay-as-you-go model that makes it user-friendly and flexible for businesses. These servers deliver various services and functionalities like storage, computing operations, running apps so that users can use them remotely through the internet.

According to Gartner, in 2022, more than $1.3 Trillion in IT enterprises will shift from legacy and in-house systems to cloud services. This includes the IT-based outsourcing businesses also. The 3 most popular models of cloud computing services are: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). 

To know more, learn Cloud Computing basics by Coursera and Introduction to Cloud Computing by Coursera.

The cloud is a cluster of servers and other networking equipment housed externally in various data centers owned by Cloud Service Providers (CSPs). Cloud computing services offer a pay-as-you-go model that makes it user-friendly and flexible for businesses. These servers deliver various services and functionalities like storage, computing operations, running apps so that users can use them remotely through the internet.

According to Gartner, in 2022, more than $1.3 Trillion in IT enterprises will shift from legacy and in-house systems to cloud services. This includes the IT-based outsourcing businesses also. The 3 most popular models of cloud computing services are: Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS). 

To know more, learn Cloud Computing basics by Coursera and Introduction to Cloud Computing by Coursera.

IT-Based Outsourcing Businesses

Outsourcing services are new business models that provide various services such as cloud call centers, remote web hosting, data storage, app development services, offshore security through APIs, blockchain services, data analytics, etc. Many enterprises do not prefer to set up such services in-house and thus outsource these services to experts who explicitly deal with such services. 

All modern outsourcing B2B (Business to Business) service rendering companies are shifting from on-premise storage and servers to cloud-based solutions. Many companies like Trigent, BrainVire, Clarion Technologies, NeoLogix, etc., have already shifted from legacy infrastructure and systems to cloud-based systems. 

To know how AI and Cloud Computing help formulate better business strategies, check out Professional Certificate in AI and Cloud Computing by edX.

Outsourcing services are new business models that provide various services such as cloud call centers, remote web hosting, data storage, app development services, offshore security through APIs, blockchain services, data analytics, etc. Many enterprises do not prefer to set up such services in-house and thus outsource these services to experts who explicitly deal with such services. 

All modern outsourcing B2B (Business to Business) service rendering companies are shifting from on-premise storage and servers to cloud-based solutions. Many companies like Trigent, BrainVire, Clarion Technologies, NeoLogix, etc., have already shifted from legacy infrastructure and systems to cloud-based systems. 

To know how AI and Cloud Computing help formulate better business strategies, check out Professional Certificate in AI and Cloud Computing by edX.

Benefits of Using the Cloud for IT Outsourcing Services

Cloud computing has been here to stay for decades. Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) of various IT-based outsourcing companies across the globe have figured out numerous benefits of doing business using cloud. Let us explore some of the benefits cloud computing can bring to the IT outsourcing market and services in the years to come.

Creating Cost-effective Business 

Outsource businesses and services like app development services, cloud call centers, and remote security services through security products like Identity and Access Management (IAM), cloud services, and blockchain services, are often required to provide services to different firms across the globe. 

Unlike on-premise servers, hosting the entire product or solution on the cloud is advantageous because organizations do not have to buy additional hardware and workforce to set up and manage such massive infrastructure in-house. Cloud's pay-as-you-go model only requires payment for the resource the company or its customer uses. This makes the outsourcing service business cost-effective.

Flexibility

An IT outsourcing service provider often has to manage a wide array of customers with different expectations, especially in software development, app-based service, call center service, Big Data analytics, machine learning development, etc. Today, most businesses depend on data and associated facts drawn from analytics. To entertain such incalculable and limitless data, the customer often wants a service that can provide flexible storage and processing of massive data. 

Having a cloud-based service can help the outsourcing company dynamically scale as per customer requirements as the cloud potential is limitless when it comes to scaling up resources to meet customer requirements.

Automatic Backup and Disaster Recovery

Another essential factor in IT outsourcing is secure data backup. Cloud services help in this as they provide the replication feature that automatically backs up customer data onto a secure server. It also helps in disaster recovery. If one data center goes down due to some disaster or technical issue, other cloud servers in different geolocations become activated automatically to maintain uptime and provide constant support for the outsourcing service. Outsourcing businesses should leverage the cloud because even a slight amount of futile downtime can lead to huge business loss or damage the brand reputation.

Information and Service Data Security

Often cybersecurity becomes a concern for all the business stakeholders and executive leaders of the outsource service firm. Since we are storing customer files, programs, data, apps, hosted websites, and other critical assets remotely in some unknown data centers - such a concern is apparent.

But on the contrary, outsourcing businesses tend to become more secure after adopting cloud services as cloud providers hire experts who continuously monitor the entire cloud system and its network. They provide various layers of security and privileges that prevent unauthorized users from accessing the cloud or data centers. In fact, the cloud and data centers are way more secure than in-house servers and internal networks. Another benefit is that the IT outsourcing firm does not have to hire or train cyber security professionals separately.

Automatic Updates and Patches without Downtime

Traditionally, while outsourcing, firms had to update their hardware, software, security patches, or existing infrastructure, while their customers sometimes had to compromise, facing downtime with their products or apps. 

With cloud computing, IT outsourcing businesses do not have to worry about security patches, hardware changes, or software updates. Furthermore, cloud providers take care of maintaining industry-standard policies and compliance-related updates. 

To integrate cloud computing into the existing outsource business, both the technical (CTOs, CIOs, etc.) and the non-technical leaders (Chief Operating Officers (COOs), Chief Marketing Officers (CMOs), etc.) of the firm should be on the same page. They need to sketch out proper strategies, decide how to execute them, and choose a cloud service provider who can best support their business.

In the coming years, the cloud will leverage more Graphical Processing Unit (GPUs) and Tensor Processing Units (TPUs) to accelerate all forms of cloud-oriented operations. From app hosting to call center solutions, machine learning model training to analytics, every outsourced service will leverage cloud solutions in the coming years.

Cloud computing has been here to stay for decades. Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) of various IT-based outsourcing companies across the globe have figured out numerous benefits of doing business using cloud. Let us explore some of the benefits cloud computing can bring to the IT outsourcing market and services in the years to come.

Creating Cost-effective Business 

Outsource businesses and services like app development services, cloud call centers, and remote security services through security products like Identity and Access Management (IAM), cloud services, and blockchain services, are often required to provide services to different firms across the globe. 

Unlike on-premise servers, hosting the entire product or solution on the cloud is advantageous because organizations do not have to buy additional hardware and workforce to set up and manage such massive infrastructure in-house. Cloud's pay-as-you-go model only requires payment for the resource the company or its customer uses. This makes the outsourcing service business cost-effective.

Flexibility

An IT outsourcing service provider often has to manage a wide array of customers with different expectations, especially in software development, app-based service, call center service, Big Data analytics, machine learning development, etc. Today, most businesses depend on data and associated facts drawn from analytics. To entertain such incalculable and limitless data, the customer often wants a service that can provide flexible storage and processing of massive data. 

Having a cloud-based service can help the outsourcing company dynamically scale as per customer requirements as the cloud potential is limitless when it comes to scaling up resources to meet customer requirements.

Automatic Backup and Disaster Recovery

Another essential factor in IT outsourcing is secure data backup. Cloud services help in this as they provide the replication feature that automatically backs up customer data onto a secure server. It also helps in disaster recovery. If one data center goes down due to some disaster or technical issue, other cloud servers in different geolocations become activated automatically to maintain uptime and provide constant support for the outsourcing service. Outsourcing businesses should leverage the cloud because even a slight amount of futile downtime can lead to huge business loss or damage the brand reputation.

Information and Service Data Security

Often cybersecurity becomes a concern for all the business stakeholders and executive leaders of the outsource service firm. Since we are storing customer files, programs, data, apps, hosted websites, and other critical assets remotely in some unknown data centers - such a concern is apparent.

But on the contrary, outsourcing businesses tend to become more secure after adopting cloud services as cloud providers hire experts who continuously monitor the entire cloud system and its network. They provide various layers of security and privileges that prevent unauthorized users from accessing the cloud or data centers. In fact, the cloud and data centers are way more secure than in-house servers and internal networks. Another benefit is that the IT outsourcing firm does not have to hire or train cyber security professionals separately.

Automatic Updates and Patches without Downtime

Traditionally, while outsourcing, firms had to update their hardware, software, security patches, or existing infrastructure, while their customers sometimes had to compromise, facing downtime with their products or apps. 

With cloud computing, IT outsourcing businesses do not have to worry about security patches, hardware changes, or software updates. Furthermore, cloud providers take care of maintaining industry-standard policies and compliance-related updates. 

To integrate cloud computing into the existing outsource business, both the technical (CTOs, CIOs, etc.) and the non-technical leaders (Chief Operating Officers (COOs), Chief Marketing Officers (CMOs), etc.) of the firm should be on the same page. They need to sketch out proper strategies, decide how to execute them, and choose a cloud service provider who can best support their business.

In the coming years, the cloud will leverage more Graphical Processing Unit (GPUs) and Tensor Processing Units (TPUs) to accelerate all forms of cloud-oriented operations. From app hosting to call center solutions, machine learning model training to analytics, every outsourced service will leverage cloud solutions in the coming years.

Conclusion

We hope this article has given you a clear idea of how IT outsourcing businesses can leverage cloud computing both now and in the coming years. Because of cloud computing, IT outsourcing services do not need to bear unnecessary operational overheads like security patches, periodic backup, separate teams for hardware and software maintenance, compliance updates, etc. 

Learn how to use cloud computing to make the outsourcing business cost-effective and get a better return on investment (ROI). Pick from an array of best cloud computing courses to learn cloud computing today!

Features

Table of Contents

  • Description

  • What is Cloud Computing?

  • IT-Based Outsourcing Businesses

  • Benefits of Using the Cloud for IT Outsourcing Services

  • Conclusion