Offshoring:Is this beginning of a reverse trend?

admin wrote this on 16 Aug 2012

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US President Barack Obama has time and again raised concerns on outsourcing, calling out to US firms to bring development jobs back home.US based corporations and government agencies have been shipping application development work to offshore IT services providers for years. Now, thanks to cloud computing, foreign companies are starting to bring their business to providers of data center services located in US.Is this beginning of a reverse trend.

For example, a large hotel company in Mexico that today relies on five data centers to support more than 17,000 guest rooms in over 100 hotels. They are planning to move most of the company’s IT capability to a data center to a Texas based hosted services provider. The U.S. data center will provide cloud-based infrastructure and managed database services to this hotel.

The shift to the cloud does not affect IT costs. Instead, it provides capabilities that help streamline deployments of new and robust IT systems. The cloud angle gives much needed agility in business having seasonality in demand, peviously, implementing new system often required new equipment that could take months to deploy. Cloud computing makes it possible to deploy new services in a matter of weeks.

Meanwhile, as U.S. providers of cloud-based services start to attract foreign customers, some countries are enacting laws to protect their domestic providers, and some foreign companies are overseeing so-called FUD (fear, uncertainty and doubt) campaigns designed to raise questions about the security of U.S. data centers.

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Tags: Cloud, Data Management, Offshoring