Browse > Home / Outsource Blogs / Even God outsourced the Ark to Noah

Even God outsourced the Ark to Noah

July 21, 2009

Galen Schreck, principal analyst, Forrester Research gave a very illustrative example recently. He said: “If you needed more office space, would you build an office from ground up or would you look for a larger, more modern office building to lease?” In the current business environment, my answer would be the latter. Any surprise then that under pressure from their managements to cut costs CIOs are increasingly veering towards leases datacenters?

IT services provider Savvis released the results of a recent study that reveals that most successful organizations are now spending more of their budgets on IT infrastructure outsourcing. Nearly the same trend was also reported by Symantec in its 2008 ‘State of the data centre’ report, which showed that 45% of companies are turning to outsourcing and training to address attrition issues.

godOutsourced Even God outsourced the Ark to Noah

“The popularity of managed hosting will likely increase because of current economic pressures,” notes Bill Martorelli, principal analyst at Forrester.

According to Martorelli, outsourcing al also makes sense from a power perspective. “Customers under capital spending constraints will find upgrading their own datacenters for higher power needs hard to justify. With its limited requirement for upfront capital investment, managed hosting can help relieve these concerns,” he observes.

However, an important question to ask in relation to infrastructure outsourcing is “how much is too much?” Although outsourcing is a tempting model when the most pressing need is to cut capital and operational costs, the actual dynamics of this industry are still evolving.

Thus while the consensus is building that “you can’t do BPO without ITO,” this can be challenging for companies that have no set precedents to follow. “Companies have understood and documented business processes since the early ERP days 20 years ago, but infrastructure processes are less understood and documented,” writes Kathleen Goolsby.

Fact is that although the IT industry has been talking about Infrastructure-as-a-Service (IaaS) for a few years, it would be sometime before we actually “get there.” That’s when ITO would take off in a big way!


Written by · Filed Under Outsource Blogs 

Comments

2 Responses to “Even God outsourced the Ark to Noah”

  1. sarath on July 21st, 2009 3:20 pm

    Nice info, but not sure how the tile of the blog and the content are related?

  2. Radhika on July 21st, 2009 10:21 pm

    God here is the outsourcer, Arc is the infrastructure that will ride the storm and Noah is the service provider — I thought the mythological pun worked… :)

Got something to say?