IT outsourcing growth is on the rebound but it is unlikely that it will ever be the same again. After the big boom that the industry experienced a few years ago before the recession, analysts estimate that this is unlikely to happen again.

Following the UK elections and subsequently, the naming of the country’s new Prime Minister David Cameron and Chancellor George Osborne has pushed government outsourcing contracts in limbo, as companies anticipate the stance the new government will enforce.

The big three of Indian outsourcing companies have a lot to evaluate, as their lower ranking rival Cognizant (NASDAQ:CTSH), is slowly starting to emerge ahead of the pack following the company’s first quarter results. This comes with the continued albeit slow rebound of the outsourcing market this year.

For the first quarter of 2010, there were some notable outsourcing contracts established, albeit they’re not the ‘mega deals’ of old, but substantial they are still.

With the passage of the historic, although much maligned, Obama healthcare reform bill in the US, a new opportunity has opened up for outsourcing companies as hospitals and insurance providers will now be seeking ways of minimizing expenses.

Even with the recovery from the economic downturn in sight, governments are still choosing to outsource some of its operations to different outsourcing companies. Governments such as India and the US are taking advantage of outsourcing to help bolster their operations and provide their constituents with quality service.

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.