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Cloud catching up with traditional outsourcing

For some this will be an inevitable evolution – fresh research from ISG suggests that the cloud is overtaking more traditional forms of outsourcing. This is in the face of spending overall diminishing in the face of uncertainties including Brexit, according to Computer Weekly.

The hard figures are that traditional outsourcing fell to EU1.3bn during the third quarter of this year – a dip of 43% – while cloud grew to EU1bn.

For us at Intelligent Sourcing there is only one real surprise in this, and that is that the difference isn’t bigger. Fresh contracts (and this report is about new signings) are often predicated on flexibility and the idea that requirements might change during the life of a partnership, and cloud makes for the minimum upheaval – at least at the client end – making it more desirable than the alternatives.

The explanation we’ve come up with is that marketers and indeed representatives of the user community are a lot better at shouting about these things when they’ve done something innovative rather than when they’re stuck in “play it safe” mode. Because these deals genuinely don’t square with the balance of announcements passing by our editorial desk (not that we’re kidding ourselves that everyone is obliged to tell us about every deal).

We’re willing to take a second opinion…

 

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