Cloud Demand for Outsourcing Will Grow in 2011

Demand for Outsourcing and Third-Party Services Expected to Grow in 2011

A new EquaTerras 4Q10 Advisor and Business/IT Service Provider Pulse Survey has revealed that the demand for outsourcing and third-party services is anticipated to grow in 2011. However, the services are being divided up in a variety of ways as the industry continues to grow and expand.

Today, businesses are  outsourcing various parts of their operations and testing a variety of  cloud-based technology offerings. Enterprises of all sizes and types are now outsourcing to more locations around the world. There is now a trend to shift away from large multiprocessing horizontal outsourcing. Key conclusions resulting from the EquaTerra’s 4Q10 Pulse Survey include:

1. Demand for customary BPO/ITO is slow. Only 51 percent of the service providers surveyed reported new deal pipeline growth for the quarter which indicates a systemic change in buying patterns rather than in cyclical fluctuations.

2. There is mixed results when looking at the impact of a weak economy on outsourcing. 60 percent of Service provider say the economic climate continues to drive outsourcing. However, only 40 percent of EquaTerra’s advisers reported the weak economy as a driving outsourcing.

3. Cloud computing is the next wave of computing innovation. Outsourcing has spurred globalization enabling businesses to profit from technologies that boost productivity. Cloud computing is reshaping the outsourcing by providing “as-a-service” capacities that include infrastructure, platform, and applications.

4. Infrastructure is a key factor to choosing outsourcing. Businesses are benefiting from integrated technologies that seamlessly work in collaboration to enable quick, reliable, and agile delivery of both IT managed services and infrastructure.

5. It is expected that web applications giving organizations the ability to track prospecting and sales efforts along with customer support interactions will provide improved customer relationship management

In 2011, Cloud “As-a-Service” options are expected to see a considerable uptake. As well, pay-as-you-go offerings for such features and benefits as: cost savings, to streamline operations, and  achieve gains in productivity, will become an attractive opportunity for enterprise. As well, 2011 and beyond will see greater standardization with outsourcing companies to better ensure compliance and security. Cloud based computing is definitely the wave of the future for IT-enterprise.