Software Enterprises Turning to Cloud Computing to Help Face Emerging Challenges
Several Chinese software and service outsourcing enterprises are now looking into using cloud computing as a part of their strategies to face emerging challenges coming from global competition and an increase in domestic salaries. Cloud computing has a strong impact in the outsourcing sector, and traditional outsourcing business is expected to shrink by 40 percent in the next three to five years.
According to Xu Zhen the chief architect of Newtouch Cloud, that cloud computing standardize resources which cuts down costs and time. Registering the account, anyone can purchase solutions based on their needs. Newtouch started to use cloud computing in 2014, and is assisting existing customers in the banking, insurance and medical industry in building private cloud or hybrid clouds that provides a one stop service for software development teams in creating tasks, sharing files and conduct online forums.
Newtouch saw an increase of requirements for cloud computing services from customers and outsourcing enterprises are now joining the tide and started to gain advantages in a particular industry wherein the can keep their advantages as long as they provide additional cloud services. Also Ye Ming the vice president for Yida New Software City Co. Ltd. one of the leading software parks operator, stated that entrepreneurship, innovation and smart manufacturing are offering great opportunities for those outsourcing enterprises. He said that outsourcing is not an industry but a business model that offers possibilities in any industry that needs outsourcing.