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From outsourcing to Cloud computing: evolution of IT services

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  • Subhankar Dhar

Abstract

Purpose - Many organizations are outsourcing their information technology (IT) related services to a third party vendor for quite some time. However, the IT services industry including outsourcing is going through rapid changes with the increasing adoption of Cloud computing. The purpose of this paper is to compare global IT outsourcing with Cloud computing along with the evolution of traditional IT services. Design/methodology/approach - Cloud computing is a model for provisioning and consuming IT capabilities on a need and pay by use basis. This helps in shifting the cost structure from capital expenditure to operating expenditure and also helps the IT systems to be more agile. This innovative model of acquiring IT related services has made organizations revisit their infrastructure and platform services strategy and optimize their IT spending while improving overall agility. This paper compares global IT outsourcing with Cloud computing along with the evolution of traditional IT services. Findings - The impact of Cloud computing on IT outsourcing is no doubt significant. Cloud computing represents a fundamental shift in how organizations pay for and access IT services. It has created new opportunities for IT services providers and the outsourcing vendors will have to modify their strategy to take advantage of this new computing paradigm. Practical implications - This research is relevant for practitioners as well as researchers in the field of IT outsourcing and Cloud computing. Originality/value - This research compares global outsourcing with Cloud computing along with the evolution of IT services. Very little research has been done in this nascent and important area.

Suggested Citation

  • Subhankar Dhar, 2012. "From outsourcing to Cloud computing: evolution of IT services," Management Research Review, Emerald Group Publishing Limited, vol. 35(8), pages 664-675, July.
    • Handle: RePEc:eme:mrrpps:v:35:y:2012:i:8:p:664-675
    DOI: 10.1108/01409171211247677
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    Citations

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    Cited by:

    1. Bayramusta, Merve & Nasir, V. Aslihan, 2016. "A fad or future of IT?: A comprehensive literature review on the cloud computing research," International Journal of Information Management, Elsevier, vol. 36(4), pages 635-644.
    2. Asatiani, Aleksandre & Apte, Uday & Penttinen, Esko & Rönkkö, Mikko & Saarinen, Timo, 2019. "Impact of accounting process characteristics on accounting outsourcing - Comparison of users and non-users of cloud-based accounting information systems," International Journal of Accounting Information Systems, Elsevier, vol. 34(C), pages 1-1.
    3. Severin Oesterle & Jan Jöhnk & Robert Keller & Nils Urbach & Xin Yu, 2020. "A contingency lens on cloud provider management processes," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 1451-1489, November.
    4. Shuraida, Shadi & Titah, Ryad, 2023. "An examination of cloud computing adoption decisions: Rational choice or cognitive bias?," Technology in Society, Elsevier, vol. 74(C).
    5. Venkataraghavan Krishnaswamy & R. P. Sundarraj, 2017. "Organizational implications of a comprehensive approach for cloud-storage sourcing," Information Systems Frontiers, Springer, vol. 19(1), pages 57-73, February.
    6. Nur Hafizah Mat Daud & Safawi Abdul Rahman, 2017. "Advantages of Using Cloud Computing by Knowledge Management Personel," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(12), pages 413-421, December.
    7. Ivo Paunovski & Dimitar Kovachevski & Goran Vasilev & Krum Efremov, 2020. "E-Agriculture Strategy: Partnerships As Business Model Framework," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 17(1), pages 108-119.
    8. Nur Hafizah Mat Daud & Safawi Abdul Rahmann, 2017. "Advantages of Using Cloud Computing by Knowledge Management Personnel," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(11), pages 908-916, November.
    9. Olena Kopishynska & Yurii Utkin & Antonina Kalinichenko & Dorota Jelonek, 2016. "Efficacy Of The Cloud Computing Technology In The Management Of Communication And Business Processes Of The Companies," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 14(2), pages 104-114, December.
    10. Fouad Amiri & Sietse Overbeek & Gerard Wagenaar & Christoph Johann Stettina, 2021. "Reconciling agile frameworks with IT sourcing through an IT sourcing dimensions map and structured decision-making," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1113-1142, December.
    11. Subroto Roy & K. Sivakumar, 2014. "Which controls are better for service outsourcing? Integrating service-dominant logic and service characteristics," AMS Review, Springer;Academy of Marketing Science, vol. 4(3), pages 45-62, December.
    12. Jacques W. Brook & Vincent Feltkamp & Martin van der Meer, 2012. "Cloud Enabled Business Model Innovation: Gaining Strategic Competitive Advantage as the Market Emerges," Working Papers 2012/49, Maastricht School of Management.
    13. Pei-Fang Hsu, 2022. "A Deeper Look at Cloud Adoption Trajectory and Dilemma," Information Systems Frontiers, Springer, vol. 24(1), pages 177-194, February.
    14. Esra Cengiz Tırpan & Hülya Bakırtaş, 2024. "Technology Acceptance Model 3 in Understanding Employee’s Cloud Computing Technology," Global Business Review, International Management Institute, vol. 25(1), pages 117-136, February.
    15. Malgorzata Pankowska, 2019. "Information Technology Outsourcing Chain: Literature Review and Implications for Development of Distributed Coordination," Sustainability, MDPI, vol. 11(5), pages 1-28, March.

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