Since 2010, outsourcing has been slowly transforming and adopting cloud-based computing elements for as much as 10% of their operations. It is one trend that forecasters see will continue, even growing to as much as half or more of a typical outsourcing scope during the next five to seven years – a transition of outsourcing engagements toward cloud-based models. This shift will have a huge impact on infrastructure, operations, training and resources, and most of all, security.

Cloud services are changing the very core of outsourcing. What can be viewed as benefits pose as risks too, things that need to be dealt with in such a way that brings to the forefront the most important challenge in cloud computing – ensuring security.

Cloud services will transform outsourcing

Cloud computing will differ from traditional outsourcing in a big way, which can clearly benefit the customer and improve the operations of the provider. From using active agents (data controllers) to using passive self-service usage of resources, providers will be able to save in data infrastructure and using human technology or resources.

Cloud services use standardized and most often, shared infrastructure or environment, so employing affordable hardware catering to client needs is doable. Access and control are very important and huge differences in cloud services – clients have access to their information real-time and access control need to be regulated, secured, and controlled.

Cloud security will play a huge role in outsourcing contracts

The dynamics between client and provider will have a noticeable shift with cloud-based services relying not on volumes and instances – a metric most outsourcing providers base their fees on. Cloud-based services are also generally shorter than traditional outsourcing contracts so the challenge for providers to have a cloud that can entertain and cater to different clients while keeping all of them secure and apart will demand resources.

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This shouldn’t be a big challenge as what savings providers get from shrinking requirements of infrastructure can be truncated to splurge on security programs, hardware, and qualified IT experts.

Outsourcing providers should take advantage of cloud technology

Cloud services, like any other service, come with risks but are manageable. The inconvenience of transition is very minimal compared to the advantage in crafting and being ahead of next-generation outsourcing agreements.

Providers can offer flexibility in their current outsourcing commitments, offering a change in plans towards partially (or fully) migrating (or testing) the cloud. Of course, the need to be transparent on what are the partners (or sharers) in the cloud is important. The issue of charging is another consideration. Since cloud services have a clear advantage of having access, anytime, anywhere, consumption patterns will double.

Cloud security can be a new outsourced option, even for providers

There is the most important concern of security. Setting types and degrees of user control can be taken control of. They may encrypt or obfuscate data, whatever the service type. Recovery Systems, in case of a breach or a hardware failure (back-ups are crucial), need to be thought of and upgraded time and again.

Zscaler is a known IT security company provider that is employed by 5,000 enterprise and government organizations worldwide to become protected against cyber-attacks and data breaches while staying fully compliant with corporate and regulatory policies. Zscaler was recently named JMP Securities “Hot 100” Company mainly because of its capability to build a modern cloud security platform that enables its clients to embrace innovation securely. It transforms the market for Internet security.

Cloud services set a new age in technology where all businesses will not only outsource but also become virtual. Corporations will manage complex ecosystems of cloud providers, IT suppliers, and business process outsourcers as well as a host of other parties, both internal and external. And security will be at the center of it all making sure trust is earned from clients so business operations can continue for providers.