Codestone

Category: Virtualisation

The IT outsourcing industry is being transformed by a number of factors that include the rise of cloud computing.

According to new research by K2 Advisory, the popularity of the technology is having a huge effect on the completion of computer-based tasks away from firms' headquarters.

Chief information officers are said to now desire outcome-based contracts from vendors of the service.

Cloud computing is single-handedly changing the way the outsourcing market operates, as it adds significantly more flexibility and enhances the range of services on offer.

The analyst body suggested that businesses that manage to understand how the cloud is utilised by outsource companies will subsequently improve the state of their own IT set-up.

Kate Hanaghan, research manager at K2 Advisory, said: "2012 will be a pivotal year for many organisations as they look to conduct a sizeable shift towards cloud services, or as they start to tackle the integration challenges."

Forbes writer Joe McKendrick recently noted that cloud computing is behind the success of some of the world's top services providers.

Posted by Victoria Browne