IT Outsourcing is the most cost-effective way for companies to hire qualified individuals (there are plenty of qualified individuals in the United States looking for work) for specific IT jobs without having to commit to the ever increasing costs of having an in-house team.

It has been a controversial issue in the customer service industry for some time now. Instead of spending on overhead such as taxes, health benefits, and infrastructure, companies now outsource. This means layoffs and more layoffs and the trend has grown exponentially during the last four years.

Hopefully our next Presidential Administration, Congress and the Senate, will see fit to offer incentives to companies–if they’re intent on outsourcing–to at least outsource to companies within the United States.

Although cloud-computing is rapidly becoming more attractive solution for storage problems in the world of  genealogy, family history, and even for the average user, I doubt that storing our ancestral data on the other side of the world is an attractive solution. How often have you called your Internet Service Provider’s help desk and found yourself being assisted by an agent in the Philippines, India, and other countries?

Cloud computing is becoming accessible to everyone and there are definitely pros among the cons.

That said, I’ve decided to share the following article written by Rachel  King in CIO Journal with you in its entirety. I’ll provide the link  to the CIO Journal at the end of the article:

Companies are turning increasingly to IT outsourcing as a means of supplementing and, in some cases, replacing internal hires. That’s especially true of application hosting. About 35% of companies say they’ll outsource more in this area during the next year to 18 months, according to a new report from global consulting firm Bluewolf. Cloud computing is partially driving this growth, as more companies use applications from the likes of Salesforce, Google and Workday.

Companies spend nearly half of their outsourcing budgets on application services including development, hosting and maintenance. Bluewolf predicts that as more companies rely on cloud providers, the outsourcing of applications will grow, whether it’s to providers who offer niche services or larger companies like Google or Microsoft.

The growth of cloud computing within the outsourcing market was also detailed in a Gartner report, released August 7. While it still represents just a fraction of the global IT outsourcing market, of around $251.7 billion in 2012, cloud computing services are the fastest growing segment of IT outsourcing worldwide, and are expected to grow 48.7% in 2012 to $5 billion, up from $3.4 billion in 2011, according to Gartner.

For Lien Chen, director for corporate IT at RAE Systems, a company that designs and manufactures gas and radiation detection systems, cloud services are a compelling alternative to using internal staff to oversee applications. The company currently uses Salesforce.com for customer relationship management, Eloqua for marketing automation and middleware from Informatica to connect Salesforce.com to its back-end Oracle databases.

Chen says she likes how quickly she can get cloud services up and running and how easy they are to maintain. When looking at new applications, whether on-premise or cloud-based, she compares features, functions and ease of use. “If everything is equal, at this point in time I would definitely go to the cloud,” she says.

Chen acknowledges that using cloud computing is technically considered outsourcing but she doesn’t think of it as outsourcing because she’s got much more control than if she outsourced an application to another country. “Outsourcing has a bad name,” she said, adding, “this is nothing but a platform difference.”

Whether you call it cloud computing or IT outsourcing, it’s growing. Quickly.

Click on CIO Journal to reach the article.

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2 Comments on Cloud computing services drive fast-growing outsourcing market—Hey! We need jobs here

  1. Buzz Man says:

    This is a good article to reprint and I enjoyed your introduction. I agree. If companies need to outsource it should be to an outsourcing company within the United States. Companies to need incentives not to outsource and more taxes piled on corporate America will lead to even more outsourcing.

  2. C. Campbell says:

    People who are out of work right now would love to move into a Level 1 Help Desk postition. Usually basic work with room to learn and move up. Bring the jobs back to the United States.

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