CIOs Scale Back Outsourcing, Favor the Cloud – CIO Journal

Posted on 15 May 2012

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Outsourcing has never been for a cost saving measure.  You must manage the vendor and once in a service agreement, anything requested beyond the originally contracted service comes with a fee.  Let’s face it, additional services and service requirements begin to change as soon as the ink is dry and where the providers starts making their profit.

Cloud computing provides platforms, infrastructure and commons services, but affords flexibility to they buyer in the management of the services without owning the infrastructure or technology in place with the cloud provider.  This does put the ownership of service management on the contracting organization.

Cloud computing is disrupting the traditional outsourcing model as well as in-house IT organizations which drives innovation into organizations.  When properly instrumented and managed, organizations have much to gain in re-thinking their sourcing and IT infrastructure strategies.

Where are you with your sourcing and infrastructure strategy?

Michele

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For CIOs, the halcyon days of IT systems and architecture that were built and managed entirely in-house, or partly outsourced to a few mammoth vendors, are gone. In its place a hybrid model rises — one that maintains elements of the traditional IT foundation, but also takes advantage of new technology and platforms as they emerge.  (Read Full Article…)

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