CNS is one of the leading ICT Integration and Managed Services companies in the UAE.
CNS claims that the global financial markets and the future adoption of private cloud computing is driving a decline in off-shore outsourcing interest, particularly from India.
"Many private and public sector organizations are still looking at the cost of ownership of their ICT infrastructures. The goal is to avoid Capex and reduce Opex. Traditionally, organizations have been considering outsourcing their ICT operations to low cost off-shore countries such as India which initially proved attractive, but the trend and economics is changing", claims Brian Perrins Senior Marketing Manager at CNS.
"Also many ICT operations in the UAE are simply not mature enough for outsourcing as they have basic limitations in the effectiveness of their maturity, processes and procedures. They are typically cost centers and operate reactively to technology and user demands. It is very optimistic to hand over your ICT operations to an outside company and expect them to solve the problems you have experienced for many years, over night. The reality is that it will not happen, especially if this organization is in another country. I think people soon will realize this when it comes to the details".
"The emergence of cloud computing in the next few years (HaaS and SaaS) will drive down the need for outsourcing as new ERP applications will be on demand, meaning that you will not need to worry about the infrastructure and its support. The ISV will manage this. Also the technology based OEMs such as HP & Oracle are already promoting cloud computing as they want to equip the global mega data centers that will grow on the back of cheap electricity and cooling in selected locations around the world, i.e. availability of hydro and wind power electricity. These will provide the raw Server & Storage needs of the future as a utility.
Add to this, the current economic situation worldwide where governments are forced to stimulate economic revival by creating local wealth and employment. Moving your ICT operations to another country will have a negative impact on your GDP; jobs will be lost, cash will flow out of the country, skills will not be developed and also there will be a dependence on an outside country for your future technology needs. Then consider security, telecommunications and currency fluctuations and the outsourced model does not look attractive for most organizations anymore.
Finally the global trend for outsourcing is diminishing. The days of mega deals are gone. Many companies are bringing ICT back in-house, a very difficult thing to do once it is outsourced. The monopoly that an outsource company has is often reflected in their high costs that the user is expected to bear when there is no competition or when contracts are cancelled.
Perrins adds: - "The new trend is to create a technology roadmap that leverages cloud computing for the future (3-5 years) and work with local Managed Services providers to help implement and make local arrangements that will complement the in-house teams that you have today. This will mature your internal processes and procedures and drive your ICT team to being a strategic business unit. End users and desk support are traditionally the areas that drain in-house resources and a good Managed Services company will, with the right tools and resources, be able to help reduce your costs and allow your teams to be more strategic".
"The only exception we see to the demise of outsourcing is applications development. This is not a mission critical requirements and writing code can be done remotely at low cost and low risk".
-Ends-
About CNS
CNS is a locally owned company, with 22 years of experience in the UAE with partnerships with many world leading OEMs (E.g. Oracle, HP, Microsoft). This proves we have what it takes to design, engineer and implement the most comprehensive turnkey services and solutions for our customers. To see how you can leverage by our expertise and experience go to www.cns-me.com
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