Outsourcing Undergoing a Sea Change

Although outsourcing has been with us for several years now, and has increased in popularity more recently, it is now changing to the extent that what we used to call outsourcing will no longer exist. The reason goes back to the original purposes of outsourcing, which were heavily centered on saving costs.

Initially, costs were saved by handing over the administrative and infrastructure costs to a specialist group who could look after those areas more efficiently. Now, however, even greater savings can be achieved by handing over processing to the new cloud specialists, like Amazon and Google. No doubt there will be others.

The cloud specialists do not offer to run special or customized applications; rather they offer generic applications and share them among numerous users. That makes it cheaper. As the systems become more mature and developed, it will be feasible for companies to outsource more of their applications to them. Ultimately, the traditional forms of outsourcing will disappear.

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