Outsourcing in an As-a-Service World: Managing Costs in Unpredictability

Outsourcing in an As-a-Service World: Managing Costs in Unpredictability

This IDC Perspective is the third of a four-part series and examines the changes in the outsourcing model that will change as a result of cloud computing and cloud services. IDC worked with the Centre for Outsourcing Research and Education to assess this hypothesis, in terms of identifying the cost drivers of cloud adoption and the factors contributing to cost unpredictability to cloud adoption. "Capital and operating costs are typically important factors in IT decisions and drivers to outsource services. While cloud computing can lower costs, it can also lead to unpredictable costs that are hard to plan for. Organizations should gain a clear understanding of the true cost of cloud adoption and accurately budget for those costs," says John Zhang, research analyst, Industry and Business Solutions, IDC Canada.

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