Cloudsourcing – do you understand the legal complexities of next-generation outsourcing?

Changes are expected in procurement, contract and governance processes – understand them to avoid getting locked in.

For the first time in 25 years, following the adoption of cloud computing, next-generation IT outsourcing models are developing (cloudsourcing).

IT provisioning and the associated decisions around outsourcing have dominated the discussions of IT decision makers since the first landmark outsourcing deal between Kodak and IBM. Since this deal in 1989, there have been multiple shifts in focus (selective v total; onshore v offshore), however, the traditional IT outsourcing model, has remained broadly unchallenged.


Cloudsourcing is similar to traditional outsourcing, in that an organisation employs a third party to provide certain infrastructure, platforms, applications and the associated processes and services. However, the rise of cloud computing means that organisations can now procure, implement and integrate infrastructure, platform and application requirements from cloud providers on a utility basis. As cloud computing matures, its use in IT provisioning is going to rapidly increase. Consequently, we can expect to see substantial changes to many aspects of traditional IT outsourcing.

Read more at: Cloudsourcing – do you understand the legal complexities of next-generation outsourcing? By Jenny Hotchin,


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