The following is a post that was written by Appoxy for ReadWriteWeb:
Business Week published an article recently that talked about changes in outsourcing. They got the cloud part right - massive disruptions and changes in the IT infrastructure stack both in technology and company power positions. But they got the outsourcing part wrong.
There will be big changes for large and middle-tier outsourcing companies. But the large won't necessarily get larger. In fact, the combination of cloud and modern programming frameworks makes it perfect for small developers and medium IT shops to get a leg up on the big consulting firms, putting their models - and margins - at risk.
This post explains why cloud makes for better outsourcing. More specifically, why cloud lets you keep a better eye on outsourced development, lets you more quickly correct issues that might arise, and gives you more security when taking ownership of the work.
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