Cloud infrastructure accounts for a third of the global IT Outsourcing market according to the findings published by Information Services Group (ISG) as featured in CIO.com.
More than the valuation of the project, cloud computing has redefined the infrastructure and service delivery models for IT and outsourcing vendors that operate in the global market.
With the rise of Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), the demand for the specialty to deliver projects within the scope of the cloud becomes paramount as corporations, who subcontract IT-BPM projects, would require vendors and IT specialist companies to work within their cloud infrastructure.
According to an interview by CIO with EMEA and Asia for ISG President John Keppel, the group has seen 2 percent decline of the traditional IT outsourcing services; a slump from the $8 billion yearly average that the market enjoyed from the last five years.
Furthermore, Annual Contract Value (ACV) for traditional outsourcing has declined in revenue service whereas in 2013, ACV dropped lower than $5 billion.
Mr Keppel also does not see the end of the road for traditional outsourcing as a service despite the revolutionary premise of cloud computing as providers, such as IT companies will be hard-pressed to deliver SaaS and IaaS that fully harnesses the cloud infrastructure, compared to the Tier 1 cloud service providers.
Philippines IT-BPM on the Cloud
Many of the IT-BPM companies utilize cloud technology to link resources and deliver compatibility between operational frameworks of organizations under their shared service levels. In order to maximize delivery without straining resources, IT-BPM companies are also subleasing cloud resources as a staging ground to support future operations.
As homegrown businesses in the Philippines are still redefining their digital capabilities, there is a slow migration between legacy frameworks towards cloud services. In order to successfully manage and maintain a secured cloud computing infrastructure for the enterprise, companies and corporations are projected to increase spending when it comes to outsourcing their cloud capabilities to specialist companies.
In a setup of outsourcing for cloud services in order to reinforce the enterprise’s cloud capabilities, internal outsourcing – within the country and external outsourcing to global specialists are projected to be the two markets that Philippine based enterprises will have as options. Spending and increasing the budget for Cloud and IT capabilities as investments are also seen to rise across the local market.
For a country known as adopters rather than innovators when it comes to cloud services, the Philippine IT-BPM companies must see innovation within the disruption, then look towards internally for the challenges being presented by the paradigm shift from legacy to cloud and then look outwards to see which trend mirrors the local struggles. Only then, the IT-BPM companies can utilize the premise of the cloud to create innovative services – whether IaaS or SaaS.
Ezy Outsourcing Hub is a gateway service for outsourcing and offshoring in the Philippines. We can help companies establish an outsourced centre equipped with the necessary infrastructure to support cloud operations. Our offices are equipped with business grade internet and scalable data centres. To get started call +63 917 5680402 and +63 917 5166897 or firstname.lastname@example.org.
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