Cloud ‘cannibalises’ IT service procurement

What's Happening in Our Profession Dec 05, 2011 No Comments

Cloud computingThe continuing trend to outsource key services to cloud-based third party providers is radically disrupting established IT procurement practices, according to new research.

“The continued trends toward consumerisation and cloud computing highlight the movement of certain former IT responsibilities into the hands of others,” said Daryl Plummer, managing vice president and Gartner fellow.

“As users take more control of the devices they will use, business managers are taking more control of the budgets IT organisations have watched shift over the last few years. As the world of IT moves forward, CIOs are finding that they must coordinate their activities in a much wider scope than they once controlled. While this might be a difficult prospect for IT departments, they must now adapt or be swept aside.

By 2015, low-cost cloud services will cannibalise up to 15% of top outsourcing players’ revenue, according to Gartner’s latest estimates. The analyst group pointed out that Industrialised low-cost IT services (ILCS) is an emerging market force that will alter the common perceptions of pricing and value of IT services.

via Cloud ‘cannibalises’ IT service procurement.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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