IT Outsourcing Reaches the Automation Crossroads

Principal Craig Wright offers expert commentary in this article about the role of automation technologies in IT outsourcing. Sample excerpt: “Cloud computing is the most disruptive force in IT outsourcing today. Instead of signing outsourcing contracts that span five or more years, Craig Wright, a principal of Pace Harmon, an IT consulting firm that specializes in outsourcing, says the average outsourcing contract is now in the range of three to five years. What's changing, says Wright, is that a lot of those outsourcing contracts involve multiple cloud service providers that are being asked to bid on process workloads as either primary contactors or subcontractors… While it's conceivable that one day reverse auctions in which cloud service providers bid to process workloads for a defined period of time might be the norm, Wright says the practical reality of dynamically switching between cloud service providers makes such an approach currently impractical. What is becoming more common, says Wright, is that organizations are distributing workloads through a finite number of cloud service providers.”

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