Cloud Computing is a computer concept that is starting to appear in the limelight of outsourcing and IT companies. It is an alternative solution for computer services where one service is shared by many through a collection of servers. This means that instead of installing a program into a single computer unit in the company, the program can be accessed by multiple units via the internet. Now what does that mean? It means savings on licensing original products and cost reduction on IT maintenance, a problem that has become a vital and important issue for chief information officers according to experts.

Contrary to what some naysayers of outsourcing are saying, the industry is alive and well, and it seems that it’s going to stay for a long while yet. As mentioned in a previous article, competition in outsourcing is becoming very stiff now, what with the industry expanding, as is what professional services firm Pricewaterhouse Coopers surmised in its Jan, 2010 report. Everyone wants a piece of the cake, but when everyone’s toting the same salver, it’s a bit difficult to decide to whom to give a piece to.

As a follow-up to a recent article, the IT Industry is riding the wave of change in all fronts from operations upgrades and expansions to more adverse developments, and on what better board could it have ridden on but the outsourcing community.

Competition is stiff in the outsourcing  industry, which is why outsourcers really have to perform in order to not just meet their clients’ expectations, but to exceed it.  Not to mention the sometimes extremely harsh public scrutiny that outsourcing companies are subjected to. Outsourcing companies are a dime a dozen now, and it’s easy to go from one to the other, especially if the one you’re with doesn’t deliver.  Just take a look at the Satyam (NYSE:SAY) - Punjab & Sind contract, which has now become the Wipro (NYSE:WIT) - Punjab & Sind bank contract.

Last year, the economic downturn caused some organizations to temporarily scale back on I.T. outsourcing efforts while they tackle fundamental issues including keeping the company afloat. This year, I.T. outsourcing is making a comeback… in Asia. As Dell Services (NASDAQ:DELL) Chairman Jim Champy predicts the Asian I.T. outsourcing market will grow much faster in 2010. “IT outsourcing is set to rise in Asia as the region’s companies begin to modernize business processes and technology systems in a build-out that could last decades. We see, as most providers do, the Asian markets growing faster - clearly more than Europe, and certainly faster than the US”, explains Mr. Champy.

The downpour isn’t a torrent anymore …The world is still recovering from the effects of the global economic crisis. And while it may be years until everybody’s able to go back to pre-crisis form, most industries, including the outsourcing industry, now have a sunny outlook for the future.

Last December, I wrote an article on Infosys’ (NASDAQ:INFY) big week, wherein the outsourcing company scored numerous deals and expanded its business in multiple areas around the world. However, since ringing in the New Year, it seems that, at least for now, the company has lost a little bit of its steam, and acquisition of contracts have waned.