IT outsourcing contracts on cloud computing to increase from 220 to 300 in 2012: ISG

According to research done by Information Services Group (ISG), there has been a significant increase in the number of IT services contracts pertaining to cloud computing services. ISG, which is an IT outsourcing consultancy, found that these contracts have tripled from the year 2010.

Cloud computing source: berytech

By using its TPI index, ISG analyzed the IT outsourcing deals and estimated that the number of deals signed which involved cloud computing services will hit the 300 mark in 2012. The figures were 220 in 2011 and 110 in 2010. This rapid increase marks the increased dabbling of the IT services industries in cloud computing sector.

Key research findings from ISG

  • IT services sector is moving towards the cloud computing platforms, in particular, shared platforms, which are standardized platform based services. Though it is difficult to customize cloud based services, firms are moving towards adopting that compared to conventional outsourcing.
  • Software as a Service (SaaS) cloud computing services is poised to grow by leaps and bounds. The sectors covered by these services will be human resources, customer relationship management and collaboration.
  • Infrastructure as a Service (IaaS) will take second place to SaaS across the enterprises.
  • Service providers earlier claimed that around 25 per cent of the pipeline opportunities of these providers consist of the cloud computing feature.
  • Cloud computing as a feature in the services provided by IT outsourcing sectors is a disruptive trend that is expected to accelerate over time especially among the traditional players in the IT sectors who face immense pressure from all sides. These service providers include software vendors, mid-market players as well as emerging Iaas and Saas providers.

Indian IT services firm, Infosys, is one such company which has faced the increased demand for cloud computing platforms from its customers. According to its head of Europe and global head of financial services and insurance, B G Srinivas, recession is the major reason which drives the customers to find flexible and viable means to pay for services. This has generated an increased interest among the customers to focus on the platforms of Infosys as services.

Edge products are a range of products designed by Infosys as services which are intended for specific parts of a business. These products are actually platforms, which are delivered via a private cloud.

Research on IT buyers conducted recently show that cloud development has been outsourced in Europe by only 21 per cent of businesses, while this is an even lower 18 per cent in North America.

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