Traditional Outsourcing x Cloud: “Old” Risks x “New” Risks – Alfredo Saad

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  1. Risks which do not exist for “traditional” outsourcing but have arisen for cloud sourcing
  • Risks associated with the inherent and yet not stabilized characteristics of cloud scenarios:

–              Frequent modifications on providers list (new, merged or acquired ones), services portfolios, tools and pricing mechanisms

–              Cloud concepts and terminology standardization not sufficiently disseminated

–              Big number of providers coexisting within an organization, not always peacefully

  • Secondary indirect risks coming from the progressive adoption of the new innovative digital technologies supported by a simultaneous cloud adoption project:

–              Mobile devices, Social Networks, Big Data Analytics, Internet of Things, BYOD, etc.

  • Secondary indirect risks coming from the evolution of the organization’s business and IT models simultaneously to the cloud adoption

–              Migration from the Make & Sell to the Sense & Respond organization business model

–              Migration from the traditional siloed to the bimodal IT model

–              Changes in business and IT investment decision models

–              New and mandatory IT skills availability

–              Enrichment of customer experience

  • Risks associated:

–              To the uncritical adhesion to one-click (sign-and-go) contracts

–              To applications integration, interoperability, portability and performance, including the new mobile apps

–              To difficulties related to switching between providers (vendor lock-in)

–              To the structuring of a platform for cloud cost management and monitoring

Does the reader’s perception coincide with that of the author? Please contribute with your comments.

Alfredo Saad has been acting on IT Strategic Outsourcing Services area since 1997. In 2006 he published the book “IT Services Outsourcing” (Brasport Publishing House). Risk Manager of all IBM Strategic Outsourcing contracts in Brazil (2009-2014). From March 2014 on, he has been acting as an independent consultant, lecturer and writer on IT Outsourcing as the principal of his own company, Saad Consulting.

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