Some believe that the flexible nature of cloud computing is changing the dynamics of IT outsourcing.

In a new study from the K2 Advisory group, Chief Information Officers, world-wide, are increasingly adopting more flexible labor options.

“In particular [they] favour outcome-based contracts from firms supplying cloud services,” Dr Katy Ring, director of K2 Advisory, said.

“Whilst the theory is good, large scale uptake of these types of contracts is unlikely in the short term due to levels of vendor risk and lack of experience from both procurement and sourcing advisors.”

The study also points out that internal IT departments will still have a role.  It will be their charge to ensure that cloud technologies actually are suited for the needs of their organization.

Nicola Mortimer, head of ICT and business development at O2, recently said that the cloud is changing business dynamics with a greater emphasis on flexibility and mobility.

http://www.k2advisory.com/