The rapid advancements in software technology have increased the productivity of the software professionals. It has pushed IT professionals to equip themselves with new skills. At same time IT innovations, over the time have reduced the workforce by integrating automated solutions in the system. The latest development on the software technology front is cloud computing. It is a type of outsourcing, in which workload is transferred from the end-user organization to the third party supplier or vendor. In short the web applications are available on the vendors’ site and the client has to simply log in, pay and use the service online.

There is no need for the organizations to invest heavily in infrastructure and manpower. Cloud computing will cut job at because the companies will not need the manpower to create the application or service, which will be available to them at a click of button. They will save money and time and help them to streamline their organization. As result it will push up their ROI.

Cloud computing threatens software outsourcing to India because it is different from the traditional outsourcing model. It imparts higher degree of virtualization in the system and makes it automated. The increased use of automation eliminates the need of the staff. Cloud computing poses a big challenge to the IT techies to fast evolve their computing skills so that they are absorbed into the fast evolving IT industry, which is more automated and customer- centric.

However, cloud computing has its own limitation. It is quite in-effective in getting around the traditional vendor and integrate seamlessly with the end user. There are integration problems which have to be sorted out. Beside this it still lacks the finesse to deliver customized solutions and is a general and broad based offering, for the larger audience.

Cloud computing will certainly hit the software outsourcing to India, under the belt. But there is a brighter side to it. It will certainly open new avenues for software professionals by creating a demand for developers with right skills, who can manage well on-demand provisioning. These new roles will be more rewarding because IT professionals will directly adding value instead of fixing problems to sustain performance.