CIO - Most outsourcing analysts and consultants will tell you that the future of the traditional IT services industry is uncertain.
Arjun Sethi doesn't equivocate. "In the next five years, outsourcing as we know it will have disappeared," says the partner and head of the outsourcing practice at consultancy A.T. Kearney. "New players, which have yet to enter the market, will soon rule the industry."
At the heart of Sethi's prediction of a "massive reconfiguration of the outsourcing industry" is the rise of cloud computing. Most existing providers simply won't adapt quickly enough. As a result, Sethi says, Amazon, Google or a vendor we've not yet heard of will become the market leaders. Meanwhile, traditional infrastructure providers like HP, Dell and Xerox may struggle to keep up, and many Indian providers will disappear completely.
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