Outsource Magazine Issue 26 - (Page 46)

Heads in tHe Cloud The cloud is transforming outsourcing – but what does it mean for the provider community, and are India-based suppliers and the traditional global players approaching the revolution differently? Kavitha Nair Kavitha Nair is a business journalist specialising in Information Technology and processes. She is a graduate of the University of Mumbai. T here is a disruptive shift in buyer thinking as service-led IT investments are fast becoming the norm in a price-conscious economy. The market is seeing a rapid adoption of ‘as-a-service’ as IT buyers look beyond the traditional and seek a balance between cost and efficiency. These sweeping changes are posing unprecedented challenges to the vendor strategist while offering the promise of new opportunities. According to Forrester Research’s Forrsights Services Survey for Q3 2011, 45 per cent of a respondent base of 575 IT executives and technology decision-makers have reduced their spend on traditional IT services as a result of as-a-service offerings. Duncan Aitchison, President and Partner at outsourcing advisors TPI, observes that providers now look to different models with a focus on IP deliver to drive the next wave of growth. However, Aitchison says, “the outsourcing industry struggles to move away from the utility low-cost business models to one that focuses on adding value.” Moreover, the distinction between an Indian and a multinational provider blurs, as they forge ahead to build their presence and strengthen their service capabilities. The players are now looked upon as being focussed on particular market segments and spaces. “Given the disruptive nature of the cloud and its impact on traditional service philosophies, I don’t think that any part of the service provider community has yet figured out what its future market positioning and business model will look like,” Aitchison adds. Mateen Greenway, HP Fellow CT EMEA Defence, Security, Government & Healthcare concurs with this view. To begin with, he explains, the definition of cloud is ambiguous and it is used to define “Every cloud is an angel’s face.” – Lydia M. Child 46 ● ●●● www.outsourcemagazine.co.uk http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 26

News & Comment
2012 in outsourcing
Fine – but what does it all mean?
Steering Steria
Separate Ways?
Getting Smart
Northern Lights
Heads in the Cloud
Connecting Service
Bigger and Better
NOA Round-Up
Breaking Through
You Cannot be Serious!
Back to the Future
Accounts Payable
The Power of Two
Public-Private Partnerships
Kill or Cure
Public Problems
Head-to-Head
Top Ten
The Legal View
HfS Research
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 26