Will Cloud Computing Shift IT Outsourcing Trends Towards IT Insourcing?

Comparing IT outsourcing and IT insourcing

Cloud computing is one of the technologies that simplifies operating compute resources and therefore the services that are based on cloud computing. Similarly, Software Defined WAN (SD-WAN), enables cloud based and simple branch office connectivity. Can cloud computing, SD-WAN and similar technology trends, bring IT (Information Technology) jobs in-house because of its inherent lower cost of operation and related automation?

Cloud computing enables businesses, large and small, to automate various IT tasks, adds agility to IT operations and drastically reduces manual labor for mundane equipment management. Compare installing a new physical server in a rack in a server room vs initiating a server in Google Compute or Amazon’s EC2. Clearly the latter is easier to manage, more cost effective and leads itself to automation. This means, there will be less need for outsourcing IT operations to overseas as companies may start to prefer bringing operations in-house for the newer cloud-based information technologies they invest in.

We are starting to see the same type of trend in the WAN segment of IT as well, where SD-WAN (Software Defined WAN), and cloud-based management of WAN connectivity for branch offices are bringing down the cost and simplifying the management of WAN resources. WAN Orchestration reduces the operational and management loads of branch office connectivity and therefore may trigger a trend for insourcing of the WAN-related IT services that have historically often been outsourced. When your Software Defined WAN Orchestration solution can auto-adapt to network changes, alert of any important events and self-heal to avoid service outages, then operating such a network becomes significantly easier and more cost effective, reducing the need for outsourced WAN services.

The WSJ today has a piece discussing how simplified and automated IT technologies can threaten the livelihood of big IT outsourcing companies such as Infosys, Tata and Wipro, unless they find a way to adapt to the changes happening in IT. Will the outsourced IT industry be able to make the big jump?

Cahit Akin, CEO, Mushroom Networks, Inc. 

Mushroom Networks is the provider of SD-WAN (Software Defined WAN) and NFV solutions capable of Broadband Bonding that enables self-healing WAN networks that route around network problems such as latency, jitter and packet loss.



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