The concept of allowing data to move offshore radically breaks with tradition of keeping the corporate jewels relatively close to home. Nonetheless, two trends are evident: Small companies are beginning to offshore IT infrastructure one application at a time-, and large multi-national companies are off shoring entire datacenters.
With the never-ending pressures to lower IT run-rates, corporations are expanding cost cutting measures to IT infrastructure. Labor arbitrage is the defacto standard for lowering the cost of IT for many corporations, however, some companies are now considering the movement of not only labor pools, but IT infrastructure and production data also. Offshore IT service providers span the globe from India, China, Eastern Europe, Africa, to South America. Offshore labor resources execute a growing number of call centers, application, and business processes for organizations worldwide. In all cases, some level of data access goes part and parcel with the offshore service provider contract. But how could relocating IT infrastructure to a remote third-party datacenter be a viable strategy, especially considering how recently the infrastructure hosting and managed service provider market fizzled in the U.S.? The following industry trends explain why: Offshore IT firms Wipro, Infosys, HCL Comnet, Tata Consulting, Satyam, etc.- have made a serious move into infrastructure management services such as database administration, system, network, storage management, etc. Traditional outsourcing firms are advancing quickly towards global infrastructure management strategies. Any organization that has successfully outsourced technical or business processes to remote service providers is now likely to consider infrastructure management. For the CIO and/or CFO IT infrastructure capital and operational costs are the next logical line item on the budget and typically comprise a huge percentage of the average IT budget. Source and full article: www.CIOupdate.coma>