By Alicia Michelle
Published on: Thursday, June 15, 2017 - 2:25pm ET
Photo credit: unsplash.com
The tech world is moving to the cloud. This trend has been announced for years, and now is our everyday reality. It is changing the way we all work. IT services are flourishing, and transforming the industry with automatic processes that enhance the exploitation of the available information. But above all, security is a concern. On this research we will dive deep into the industry trends related to how the cloud services are changing the way we all work.
The Advantages and Concerns of Cloud Services
Most new systems that need a server are now hosted in the cloud. The availability of robust hardware that can host many servers is part of the technological developments that have made this change possible. This has shown to be a reliable, and most of all, a low-cost solution compared to the traditional schemes. The fact that the information is available anywhere is very important and solves most network concerns.
Outsourcing IT companies have seen on this an important opportunity of growth. They are bringing the necessary skills to the market at a low cost. This happens because of the possibility to allocate highly skilled personnel at remote locations. A cloud model allows them to expand their market and increase their service offer.
But with all the accessibility in the cloud, the concern is still security. The fact that the information is available means that anybody who is skilled enough can crack security and steal the data. With the right motivation, all information is vulnerable. Decreasing this risk is what is becoming costly, and there are constant improvements.
As a response to these threats, the industry trend is focused on the development of robust systems for security. The areas with the most important developments include the intelligence, automation, and analysis of known threats. But they should not be addressed alone, but as part of an integral strategy with organic reach to react wisely to the increasing threats and opportunities.
The Trends for the Pricing Models
To address security concerns and to provide customized solutions, the trend in the IT service world is now to set new pricing models. This initiative is led by some of the worldwide big players like HP and Accenture. They have changed the T&Cs of their current contracts on renewal, changing them for a variable fee model.
But they are not the most important economical players around. Surprisingly, startups (small companies with up to 3 years) are raising their market share. This particular trend outstands when it comes to innovation.
Despite their lack of resources and experience, they have found a solution choosing the right pricing model. Considering how a project is conceived, and the popularization of waterfall methodologies, the expenditures are set on phases. Practically 30% of the budget is spent in the development phase at the beginning of the project to analyze the requirements correctly. This is how startups are contributing to the 1.13 billion dollars’ market share this year.
The Trends on the Companies Allocation
India is well known for having extremely skilled IT professionals. They may offer the cheapest solutions on the global market, but that is not enough to stand a fight. Software developers are now looking somewhere else for outsourcing companies.
Eastern Europe is where the new trends are going. Countries like Romania, Belarus, Poland, and Ukraine are outsourcing high quality IT projects all around Europe and even America and the Middle East. Their professional background and high education has been very important to this change. But most of all, a compatible schedule is proving to be key on working with such developers. There is only a two-hour difference with most European countries, compared to the 7 hours with India.
The fact that a company can call for a meeting in person with short notice during their working hours is very important. This kind of accessibility has speed up the projects and improved the results, which is what all companies are looking for nowadays.