Cloud computing is now a core technology enabler for Outsourcing and Shared Service (OSS) provision. Simply put, cloud computing is shared computing resources, complemented by storage and networking capabilities that are owned and hosted by a service provider and offered to customers on demand, through the internet. It has become a key battleground for traditional tech giants such as Microsoft, Google and IBM but the market leader is Amazon Web Services (AWS).
The resounding success of cloud computing is attributed to a range of business benefits. It enables instant access to innovative technologies while avoiding lengthy implementation times, high capital costs, and extensive project management. It also offers on demand access, operational agility, flexible pricing models and economies of scale.
Cloud adoption is relevant for all BPO functions but one of the fastest growing is HR business process outsourcing, with spending here estimated to reach nearly $22 billion by 2023. Services such as payroll, human capital management, and training & development can all benefit significantly from cloud solutions that offer distributed workforces real time access to information.
Cloud computing has also given rise to the “as-a-service business model”, most notably IT infrastructure as a service (IaaS). According to a , this market segment has grown by over 30% CAGR since 2016 and is set to grow from $31billion in 2018 to over $100 billion by 2023 – equating to 10% of the whole OSS market.
This is seen in the inexorable rise in demand for Cloud Architects, Cloud Solutions Designers and Cloud Security experts. Although the total demise of the traditional on-premise data center managed by the internal IT department is yet to be completed, it’s definitely not too far away. The opportunity for IT Outsourcing companies using combinations of cloud computing and high caliber shared expertise to deliver valued services is a clear trend for the foreseeable future.