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Offshore service providers must incorporate cloud computing

The business world has been subject to a number of dramatic changes during the past several years, especially as globalization trends take place and encourage enterprise decision-makers to work with offshore providers that promise to expand corporate operations. Although this occurrence has been happening at a steady pace for some time now, the introduction of cloud computing has given companies similar opportunities without having to outsource to another country. As a result, offshore providers are feeling the heat.

The simple fact is that offshore service vendors need to consider embracing the cloud and incorporating it into their operations or they risk losing out on revenue opportunities. This was highlighted in a recent Gartner report, instilling the prediction that the global public cloud market is forecast to generate $131 billion in revenue by the end of this year and grow to more than $180 billion in 2015.

Still, offshore providers shouldn't see the cloud as a threat. Instead, vendors should recognize the emergence of the hosted services as a new opportunity to expand their offerings and build stronger revenue streams.

"Cloud-based services will not replace offshore services, but will complement them," said Ian Marriott, research vice president at Gartner. "In addition, cloud services will not 'make or break' all offshore providers."

At the same time, however, providers need to embrace change or risk missing out on opportunities.

Time to adapt
Analysts said offshore providers that leverage the cloud will have an easier time keeping up with vendors that cater to multiple countries due to the fact that they can quickly adjust operations to meet the evolving needs of customers around the world. Meanwhile, a cloud infrastructure enables firms to maximize profit and growth due to its unique service delivery characteristics.

A separate IDC study noted that businesses around the world often need help implementing their own cloud solutions and look to collaborate with external providers that can help them navigate the complexities associated with embarking on these migrations. This introduces another opportunity for offshore providers because their use of the cloud may suggest to clients that they're more familiar with ongoing changes in the IT environment and can help companies pursue similar endeavors.

The proliferation of cloud computing services throughout the globe is creating substantial chances for organizations of all types to improve operations, reduce costs, and generate more revenue—all of which are crucial in the business world and key to ongoing enterprise survival.

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