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Cloud Computing and Outsourced IT: A Winning Combination

ASG Cloud computing and Outsourced IT in South Africa

Combining Cloud Computing and Outsourced IT


In the next 10 years (2023–2033), the South African market stands to gain an extra R3.9 trillion in economic value as cloud computing becomes more integrated in business practice.

According to a new analysis commissioned by Amazon Web Services (AWS), public cloud computing usage could account for up to 4.5 percent of South Africa’s Gross Domestic Product (GDP).

A state-of-the-art econometrical approach for determining the total productivity benefits experienced by economies that embrace cloud computing has been developed in the study conducted by Telecom Advisory Services and overseen by Raul Katz, director of Business Strategy Research at the Columbia Institute for Tele-information (Columbia Business School).

The paper states that cloud adoption had a notable influence on the South African economy in 2021, adding R14.3 billion to the regional GDP, or 0.18%. The so-called “spill over effects” or increases in national productivity account for about 78% of this effect. Public and private sector cloud spending accounts for the remaining 22%.

In this article, we will discuss how combining cloud computing and outsourced IT could prove beneficial for your business.


Cloud computing: what is it?

The term “cloud computing” refers to the practise of storing data and computing resources in a remote, safe location and accessing them remotely as needed. A wide variety of services and resources are at your disposal, such as apps hosted in the cloud, servers (both physical and virtual), data storage, networking, processing power, development tools, and more. The data that drives these services and resources is stored on remote servers that are set up, managed, and maintained by companies that offer cloud outsourcing. To harness more cutting-edge tech like RPA, machine learning, and AI, cloud outsourcing is a must.

With cloud computing, numerous users from different places, using different devices and apps, can share and access the same resources simultaneously. Online document editors like Canva and Google Docs also allow users to work together on the same projects in real-time.

Businesses in South Africa are rethinking IT resource management and deployment strategies in light of cloud computing’s capacity to provide computing services over the internet. Since the cloud is scalable, flexible, and cost-efficient, it helps businesses to swiftly adjust to their evolving needs. More and more South African companies are using cloud services to store data, host applications, and access computing power. This allows them to scale operations without investing heavily in physical infrastructure up front.

Cloud computing’s popularity in South Africa has been boosted by the rise of regional cloud providers. Businesses can rest assured that local cloud providers will follow regional regulations, which is becoming more important as data sovereignty and compliance become top issues. This has helped allay some of the fears about compliance and data security that were preventing cloud computing from gaining traction.

Companies across various industries should seek out IT providers that have cloud engineers and developers on staff who are well-versed in cloud architecture and management. These experts will help businesses avoid cloud bill shock and make sure their data is secure.


IT Outsourcing in the South African Context

South African companies who want to boost their internal skills with specialised knowledge have made IT outsourcing a strategic necessity. A worldwide talent pool, specialised expertise, and economies of scale are all within reach when businesses outsource. Information technology outsourcing has been crucial in resolving skill shortages and meeting the demand for specialised knowledge in the modern business environment.

A growing number of South African companies are turning to outside firms for help with software development, cybersecurity, and other information technology-related tasks. Not only does this method increase productivity, but it also frees up internal resources for companies to concentrate on what they do best. With IT outsourcing, companies can achieve operational excellence and innovation without the burden of maintaining a large in-house IT team. This gives them a clear competitive edge.


A Perfect Combination

When looking at the advantages gained by combining Cloud Computing with IT Outsourcing in the South African company setting, the synergy between the two becomes clear.

One advantage of cloud computing is its scalability and flexibility, which let businesses adjust their IT capabilities to meet changing demand. In conjunction with IT Outsourcing, companies may tap into a pool of specialised talent and resources whenever they need it, allowing for more responsive and adaptable operations.

IT Outsourcing bolsters the economic benefits of Cloud Computing, which include a pay-as-you-go model and a decreased requirement for capital expenditure. Organisations can gain access to cost-effective solutions without sacrificing quality, streamline costs, and take advantage of economies of scale by outsourcing specific jobs or operations.

IT Outsourcing allows companies in South Africa to reach beyond national borders and access a pool of talented individuals from all over the world. Cloud computing makes it easy for distributed teams to work together, which helps businesses benefit from a wider range of expertise. Innovation and global competitiveness are made possible by this combination.

Cloud computing and IT outsourcing work together to reduce risks. Outsourcing specific tasks to specialised suppliers spreads operational risks and guarantees business continuity, while cloud services, supported by strong security measures, improve data protection.

Together, these two paradigms create a powerful symbiosis. Businesses are better prepared to handle the challenges of the digital age with agility and resilience when they use this winning mix, which boosts operational efficiency and innovation. Cloud computing and IT outsourcing, when combined, offer a powerful strategy for companies undergoing digital transformation, giving them an advantage in the dynamic and technologically driven commercial environment.

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