We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: IT Outsourcing Firm or Cloud Provider? The line keeps blurring.
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > IT > Cloud Computing > IT Outsourcing Firm or Cloud Provider? The line keeps blurring.
Cloud ComputingIT

IT Outsourcing Firm or Cloud Provider? The line keeps blurring.

JoeMcKendrick
JoeMcKendrick
3 Min Read
IT Outsourcing Firm or Cloud Provider? The line keeps blurring.
Illustration generated with Qwen Image.
SHARE

The Gartner Gang reports that cloud computing represents the fastest-growing segment of the IT outsourcing market.  While still a relatively small piece of this market, it points to a blurring between solutions. Are cloud providers — especially Infrastructure or Platform-as-a-Service vendors — IT outsourcers? Are IT outsourcers and systems integrators becoming cloud vendors? What’s the difference anymore?

The Gartner Gang reports that cloud computing represents the fastest-growing segment of the IT outsourcing market.  While still a relatively small piece of this market, it points to a blurring between solutions. Are cloud providers — especially Infrastructure or Platform-as-a-Service vendors — IT outsourcers? Are IT outsourcers and systems integrators becoming cloud vendors? What’s the difference anymore?


Gartner just reported that worldwide spending for IT outsourcing services is on pace to reach $252 billion in 2012, a two-percent increase from 2011 spending of $247 billion. The fastest-growing segment within this market is cloud compute services, which is part of the cloud-based infrastructure as a service (IaaS) segment.

Cloud compute services are expected to grow 49% in 2012 to $5.0 billion, up from $3.4 billion in 2011, according to Gartner.

Underscoring Gartner’s projections, ZDNet’s Jo Best reports that Infosys has just launched its “Cloud Ecosystem Hub,” designed to enable companies to buy, deploy and manage cloud services across multiple environments. The Hub’s brokerage service enables users to compare products from over 30 companies, including Amazon, Microsoft, VMWare and Oracle, as well as make recommendations.

While cloud will still remain a smaller portion of the overall IT services market (about 2%), in nonetheless represents an impending shift for IT outsourcing providers. Many IT resources are now available as cloud services, and can be purchased incrementally, online, on an as-needed basis. The outsourcing companies that want to get ahead of this curve may serve as aggregators or brokers of collections of cloud services, such as what Infosys is doing.

On a related note, Phil Fersht, head of HfS Research and author of the Horses for Sources site, is running an advocacy poll as to whether the term “outsourcing” should be done away with. “Sourcing” might definitely say enough. (And applies to cloud situations.)

(Photo by Joe McKendrick.)

 About Joe McKendrick

Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Kick off your day with ZDNet’s daily email newsletter. It’s the freshest tech news and opinion, served hot. Get it.

Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article explains that training robots for physical interaction requires three distinct data cate
Physical AI: What Data Do You Need to Train a Robot?
Artificial Intelligence Exclusive Robotics
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
Analytics Big Data Exclusive Software
Flat editorial illustration: The article examines AI agents that escalate from legitimate data retrieval to attempted intrusions
OpenAI’s Government Website Incidents Raise a Hard Question for AI Agents: When Should They Stop?
Artificial Intelligence News Security
Flat editorial illustration: The article's core relationship is the alignment between customer behavioral data (visit frequency,
Data-Driven Loyalty: How Restaurants Use Behavioral Analytics to Optimize Revenue
Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

The Infrastructure Gap Slowing Data Center Growth -- AI-generated illustration
Big DataCloud ComputingExclusiveInfographicIT

The Infrastructure Gap Slowing Data Center Growth

7 Min Read
The Four IT Security Principles: A Practical Guide to Improving Information Security
Security

The Four IT Security Principles: A Practical Guide to Improving Information Security

5 Min Read
The Top 5 Worst Technology Predictions of All Time
IT

The Top 5 Worst Technology Predictions of All Time

5 Min Read
Mobile Advertising, Clustering Algorithms, and Your Ticket for a Free Ride
AnalyticsBig DataCollaborative DataData MiningData VisualizationExclusiveITLocationMarketingMarketing AutomationMobilityPredictive AnalyticsSocial DataSocial Media AnalyticsSoftwareStatistics

Mobile Advertising, Clustering Algorithms, and Your Ticket for a Free Ride

5 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

How To Get An Award Winning Giveaway Bot
How To Get An Award Winning Giveaway Bot
Big Data Chatbots Exclusive
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
The Art of Conversation: Enhancing Chatbots with Advanced AI Prompts
Chatbots

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?