The landscape of outsourced IT services has transformed significantly since the early 2000s. While the fundamental concept of outsourcing remains, the intricacies and value of this model have evolved, especially in the realm of technology outsourcing. This is where the Cloud can help.
This blog used information sourced from Thrive. You can read more here
The Traditional Model
Not long ago, the standard approach to providing technology services involved maintaining a communications room within your workplace. This room housed an extensive technology stack, including networking, storage, and computing devices. It served as the backbone, delivering applications and data directly to user devices and workstations on-site. For service continuity, a replica of this setup would typically be maintained offsite, usually in a data centre. Managing this ecosystem requires a combination of in-house infrastructure, development, and support professionals, resulting in significant financial costs and management burdens.
The Shift to Private Cloud
The first major shift came with the transition from this “on-prem” setup to a data centre-derived solution, known as “private Cloud” or “co-location” (co-lo). This change eliminated the need for on-site hosting of enterprise systems and data, making applications more accessible and reducing infrastructure risks tied to the physical workplace.
The Public Cloud and SaaS Revolution
The next major evolution was the global adoption of public Cloud and SaaS services. Previously, technology outsourcing required substantial capital investment in data centres and hardware, along with a highly skilled team to manage and support these systems. Public Cloud and SaaS services have commoditised this environment, drastically reducing the need for significant capital and consolidating the expertise required.
As a result, many functions that would typically be handled by an internal team are now outsourced to service providers. This shift has transformed the technology function into a cost allocation within an outsourced services budget, providing numerous credible providers in the market. Customers now base their decisions primarily on cost and service quality.
Focus on Service Quality
Despite the complexities of technology outsourcing, the decisive factors for customers are straightforward: cost and service. While cost is important, exceptional service commands a higher value. The emphasis has shifted from the technology itself to the quality of service and the people behind it. Customers prioritise service and relationship quality over technical details.
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