When it comes to the technology behind business expansion in Asia, all roads are beginning to lead to Singapore.
We've seen strong interest in cloud computing fuel demand in Singapore, and now we're seeing that region take the lead in IT outsourcing as well. In fact, a global study commissioned by Savvis recently found that a minority of Singapore organizations - 42 percent - keep most of their IT infrastructure in-house, compared to 54 percent globally.
In five years, this study predicts 98 percent of Singapore's IT leaders will outsource most of their infrastructure and move it to the cloud.
Why is Singapore beating the rest of the world to the advantages of outsourcing - and ultimately - the cloud? The convergence of economic, cultural and technologic trends makes Singapore the right place at the right time for IT outsourcing.
Here's why -
Economic expansion. Rapid business growth requires efficient infrastructure deployment and management. Outsourcing can alleviate the burdens of infrastructure management, while also lowering the total cost of ownership - essential elements for expanding businesses that need to focus on establishing a regional presence and driving revenue.
Strategic accountability. As multinational organizations charter new territories, CIOs must concentrate on delivering business value, not managing heavy, day-to-day infrastructure tasks. With technologies unfolding in cloud at an ever-evolving pace, outsourcing becomes a strategic, forward-thinking decision for these leaders.
Fluctuating IT demand. Expanding business volume and changing end-user needs call for scalable IT solutions. In Singapore, 70 percent of Savvis survey respondents said the most important benefit of cloud computing was the ability to scale up and down to meet computer, storage and bandwidth consumption.
Soaring Internet user base. Skyrocketing Internet usage throughout the Pacific Rim, and in Southeast Asia particularly, is attracting the attention of major multinational technology companies, which need regional data hubs to accommodate the growing network and data consumption. Singapore, with its strong government support for technology and its business-friendly climate, is well-situated to house such hubs.
Fewer legacy systems. As a culture, newer Singapore organizations are less reliant on legacy systems, and that's translating into fewer security reservations. Our study found security to be the top barrier to cloud computing among IT leaders globally - except in Singapore, where it ranked seventh on executive concerns.
The best thing global CIOs can do for their organizations is support processes that enhance their company's competitive advantage. Those who realize that are turning to cloud computing and IT outsourcing to achieve improved efficiency, scalability and collaboration. And they're doing so in Singapore.
Mark Smith is managing director, Asia, at Savvis, a CenturyLink company.