CHAPTER ONE

1.1. BACKGROUND OF THE STUDY

When it comes to outsourcing everyone has a tale of woe. Some software vendor that outsources a new development project could not meet dead line because they were amateur so they switch from one platform to another. But the big question is who reach the platform, did the customer work daily? (NO). Did it have automated status reputing (it did not)

 Outsourcing is a key part of ever modern IT group. The problem is, we still don’t seem to do it well. Hence many business technology professional fire vendors within a short period of time. Companies using IT outsourcing speak of the importance of managing outsourcing better.

 One of the growth of cloud computing and software as a service initiatives.

IT outsourcing is moving up the stack as vendors take over increasingly strategic functions. Nearly six to ten IT shops outsource some critical function. Management, engineering or development, almost one fourth keep executive and management functions in-house but look to outsource everything else as companies relies more on outsiders, a lack of oversight , management and even monitoring can have catastrophic consequences.

 Cloud computing blurs the lines between what had been conventional outsourcing and internal operations and it will test IT’s management and control policies. Therefore the research seeks to investigate cloud computing as a better means of IT outsourcing.

1.2. STATEMENT OF THE PROBLEM

The problem confronting this research is to investigate cloud computing as a better means of IT OUTSOURCING

1.3. RESEARCH QUESTIONS

What is cloud computing

What is IT OUTSOURCING

What is the role of cloud computing as a better means of IT OUTSOURCING

1.4. OBJECTIVES OF THE STUDY

To determine the nature and characteristics of cloud computing

To determine the nature of IT outsourcing

To highlight the role of cloud computing as a better means of IT outsourcing

1.5. SIGNIFICANCE OF THE STUDY

The study shall be of immense importance to IT companies and IT professionals

The study shall provide a structural framework on the application of cloud computing as a better means of IT outsourcing

It shall serve as a reference point that of information on cloud computing as a better means of IT outsourcing

 1.6. STATEMENT OF HYPOTHESIS

Ho, the growth of cloud computing is low

H1, the growth of cloud computing is high

H0, the level of IT outsourcing is low

H1, the level of IT outsourcing is high

H0, the impact of cloud computing on IT outsourcing is low

H1, the impact of cloud computing on IT outsourcing is high

 1.7. SCOPE OF THE STUDY

The study focuses on cloud computing as a better means of IT outsourcing

1.8. DEFINITION OF TERMS

Definition of cloud computing:

 Cloud computing is a model for enabling ubiquitous, convenient, on-demand and network access to a shared pool of configurable computing resources (e.g.  networks, servers, storage, applications and services) that can be rapidly positioned and released with minimal management effort or service provider interaction . Edwin .s (2014

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