{"id":1696,"date":"2010-04-09T06:52:00","date_gmt":"2010-04-09T06:52:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/cloud-blow-up-the-trad-model\/"},"modified":"2010-04-09T06:52:00","modified_gmt":"2010-04-09T06:52:00","slug":"cloud-blow-up-the-trad-model","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/cloud-blow-up-the-trad-model\/","title":{"rendered":"The New Relentless Economy: How quickly can Cloud blow-up the traditional outsourcing model?"},"content":{"rendered":"
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It's not a question of "If"…<\/p>\n<\/div>\n

We LOVE the Cloud.\u00a0 When you think that 60% of the costs of maintaining\u00a0the average\u00a0server are purely electrical power (and worse with old hardware), simply jettisoning the asset-heavy infrastructure will reap a return.<\/em><\/strong><\/p>\n

However, when we delved more deeply into the seeds of Cloud Computing (read our earlier article<\/a>), it’s clear the future potential of Cloud goes well beyond cost-savings\u00a0generated by eradicating\u00a0clunky, inefficient IT infrastructure.\u00a0 Cloud can harness the true benefits of SaaS delivery and BPO can plug the gaps may companies need to have business services delivered in a readily-available “as you need it” model.<\/p>\n

One of the core discussion points on this site over the years has been\u00a0how the outsourcing industry can\u00a0find new levels of efficiency –\u00a0and business value –\u00a0once companies have maxed-out the cost-savings from lower-cost labor.\u00a0 The IT outsourcing business still has plenty of mileage shifting software development and support work offshore, but eventually this will dry-up.\u00a0 Many of the high-end enterprises have already moved as much of the commodity work offshore, and they are having to look at more of the complex infrastructure areas for the next wave of productivity gains.\u00a0 Cloud delivery is going to pay a pivotal role in the heart of the future global sourcing delivery business, but the critical question is how quickly<\/em> it will become adopted.<\/p>\n

Stephanie Overby’s <\/strong>latest article in Computerworld magazine<\/strong><\/a> has some excellent talking points:<\/strong><\/p>\n