Out-tasking services are increasingly eating away at the $110 billion outsourcing pie. However, these services are not necessarily pure-play cloud platforms — in many cases, they’re a combination of the best of both worlds.
Infrastructure-as-a-Service, Software-as-a-Service, Database-as-a-Service, Desktop-as-a-Service and — wait for it — Innovation-as-a-Service (Digital-Transformation-as-a-Service is still in beta). The industry is flooded with new per-employee and per-gigabyte offerings from traditional providers and a wave of new pure-play entrants. These offerings are slowly but surely eating away at the Tower-based model the industry has relied on for over two decades.
It’s easy to understand why there is such intense interest. As-a-service offerings promise to deliver simplicity, speed and dramatic cost reduction. Compare this to the kinds of environments many buyers find themselves in today with massive complexity, languid response times and increased costs for a diminishing set of services.
Buyers are hungry. The promise of as-a-service is driving demand for these offerings to unprecedented levels.
However, expecting cloud-like features and financials combined with a 99.99% SLA can often lead to disappointment when evaluating these offerings. Long-term commitments, immature service delivery processes and supplier-weighted agreements often leave buyers disillusioned and frustrated. This frustration is most keenly felt when buyers use an outsourcing lens to evaluate these plucky new offerings.
The chasm between traditional and pure-play as-a-service offerings is deep and wide — but that is changing.
A number of managed services providers, and, to a lesser degree, public cloud providers, are embracing the idea that tiered, service catalog-based managed services combined with a highly standard technology platform equals opportunity. Opportunity to insert their standardized operating model into their customers’ operations to make them materially better