Outsourcing Via the Cloud; With Less of that Pesky Negative Connotation

Outsourcing Via the Cloud; With Less of that Pesky Negative Connotation

Outsourcing has always been a somewhat controversial business strategy. MSPs are poised to be able to offer companies a way to "outsource" via the cloud that is slightly different than the larger and more traditional concept of outsourcing. 

Outsourcing has always been a somewhat controversial business strategy. Yes it cuts costs, but it also creates a distance between customers and the outsourcing providers, potentially lowering the quality of work and causing job loss.

And although it does still have some of the same controversial qualities (such as replacing people’s jobs), the practice of outsourcing is transforming into a standard way to do business as services are moving to the cloud and using services such as cloud-based file sharing.

As an article written in Forbes puts it, “Outsourcing is no longer simply defined by multi-million-dollar mega-deals in which IT department operations are turned over to a third party. Rather, bits and pieces of a lot of smaller things are gradually being turned over to outside entities.”

Phil Fersht, principal of HfS Research noted that people don’t care so much about protecting jobs anymore if those jobs can be automated quickly and only include transactional tasks. To get rid of the unnecessary waste, he says people will just buy a SaaS platform, move their services to the cloud where software providers can replace (somewhat unnecessary) on-premise jobs.

And although it might sound harsh, there are benefits to eliminating tasks that can be automated, saving money, and being able to granularly pick and chose the services you want, especially if an MSP can ensure that outsourcing doesn’t mean customers feeling out of touch with their providers.

Fersht feels that as enterprises become more integrated with the cloud, employees can focus more on their talent, add value to organizations, with insights that are more creative and innovative for decision making, rather than performing mindless monotonous tasks.

“Whether their work in finance, HR, marketing, procurement, IT, or the supply chain,” he says, “their job is to leverage digital technologies and platforms effectively so they can refocus their time adding value… People need to do a lot more thinking, and less executing.”

But with that being said, a recent study of 312 executives conducted by HfS and KPMG finds that “less than one-third of companies are happy with their internal talent’s ability to drive positive outcomes from their analytical and creative capabilities with their current outsourcing engagements. And 37 percent are ready to walk from their current arrangements.”

That is where MSPs step in to maximize the relationship between the cloud service with the enterprise for positive results.

Given the expertise that MSPs have with cloud services, they can help enterprises and marking executives turn generated data into actionable and useful analytics. By analyzing data efficiently, it can greatly build customer relationships by understanding what it is they want or how there are interacting with your product or service.

MSPs can also help operation managers become familiar with ERPs in the cloud and business managers become more involved in IT infrastructure. A good MSP can make it so - Instead of becoming more connected instead of distant.

If your company has outsourced to the cloud, do you feel everyone is more connected? Can you justify seeing jobs being replaced? Do you feel like people can focus more on creativity and talent as opposed to performing mundane tasks? Leave your comment in the section below. 

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