This week we will discuss an exciting topic of outsourcing and
cloud computing.
To understand what the two are, let’s look at both and how they
benefit or hinder a company.
Outsourcing, as we come to know it, is the method where a
company hires a third-party provider who then performs a specific task or
function on behalf and for the benefit of a business. This method can perform
functions that cloud computing cannot do or does not execute.
Cloud computing is the practice of using a network of
remote servers that are hosted over the internet to manage, store, and process
data, rather than doing so on a local server or a personal computer.
*Cloud computing is not the same as outsourcing*
The difference between the two is that cloud computing can do
computing between different machines at different locations and combine the data
from one application to another.
While outsourcing is where a business hires someone to do a specific task at a set price.
There are pros and cons to both methods, which are:
Outsourcing
Pros:
You contract an outside vendor that can perform tasks, Have access to a large talent pool,
Lower labor costs.
Cons:
Lack of Control,
Communication Issues, Problems with Quality, Impact on Company Culture, Risk of
Vendor Lock-In.
Cloud Computing
Pros:
Cost-Efficient,
Scalability, Backup, and Recovery, Automatic Software Integration, Easy Access
to Information, Quick Deployment.
Cons:
Technical Issues,
Security in the Cloud, Prone to Attack, Risk of Vendor Lock-in.
As you can tell, both methods bring different things to the table
for any business looking to cut costs or increase productivity. It all comes
down to what line of business is being done by that company. These methods can
also be used together or separately to fit the company needs better.
So, with that, I ask you. What is your experience with
outsourcing and cloud computing? How did it affect you and your business? Did
you find it a smooth transition, or was it challenging to get everything in
order?
Please, leave a comment below with your thoughts and let me know
if I left anything out.
Until next week!
References
Viswanathan, Priya. “Cloud Computing: Know the Pros and
Cons.” Lifewire, Lifewire, 14 Nov. 2019,
https://www.lifewire.com/cloud-computing-explained-2373125.
Patel, Deep. “The Pros And Cons Of Outsourcing.” Forbes,
Forbes Magazine, 17 July 2017,
https://www.forbes.com/sites/deeppatel/2017/07/17/the-pros-and-cons-of-outsourcing-and-the-effect-on-company-culture/#6d6b3d0f562d.
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