I’ve been doing research for several reports on the topic of IT outsourcing, some about utilizing cloud computing for hardware and some about working with vendors to handle consulting and development. While these two areas are conceptually very different, the approach and business values are quite similar.

One misconception about both is that they are used for “replacement.” By this, I mean that an insurer uses cloud computing to replace their data center or an insurer utilizes an IT service provider to replace their IT organization. While in some instances this might be true, it is rarely the case.

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