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Is Cloud Computing a threat to outsourcing industry?


Cloud Computing

With each passing day, software advancements are taking a new form. With this transition, there is a tremendous uplift in the productivity level of almost all industries. An important advancement in the software industry is cloud computing. In a layman’s language, it may be defined as a way of delivering information or hosted services wherein resources are retrieved from the internet  rather than having local servers or personal devices to handle applications.

Cloud Computing helps organisation cut down cost on contact center infrastructure as well as labour. This enables them save time and energy.

However over time we have seen more counter views emerge to cloud computing, case in point – a raging debate on : if Cloud Computing will pose a threat to the outsourcing companies?

According to the reports, there are chances for outsourcing industries to be hard hit by Cloud Computing. The reason being, it reduces the application infrastructure and managing the outsourcing clients. Since, the utility of cloud computing is more or less known to people, don’t you think, the advantages of it will be availed by all and sundry?

Lets cite an example, a customer who needs details about his credit card will straight away provide his credit card number to a cloud provider and procure his requirements which are all computed instantly. He can also get cloud-based capabilities in fields such as CRM, finance etc by simply contacting the software provider. Now imagine, will any such software or any other company for that matter, still be in requirement of a service or an outsourcing collaborator anymore?

Thus, we may assume that the various levels of service required in cloud computing may shake the outsourcing industry. This will inevitably result in providers offering more alternative value propositions.

Cloud computing simplifies business services but at the same time gives birth to other complexities as well. It no doubt computes services instantly but also increases your dependency on your internet connection. When the connection is off, your work gets stuck. Another disadvantage is your data security. Switching to the cloud with your personal data is arguably unreliable.

However, inspite of security or data ownership concerns, cloud computing remains an easy option for computing information and services instantly. Companies hence continue to shift workloads to IaaS, SaaS, and PaaS providers.

Therefore we can say that the role of outsourcing is changing drastically and will continue to do so as companies move to being heavily reliant on the cloud for business services. We may say that we are entering a period whereby the cloud will accelerate its eminence and might pose a threat to the multiple classes of outsourcing services and providers. Leaving the question aside the outsourcing industry ready for cloud largely unanswered.




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