A Project Report

On
A STUDY ON EXAMINATION OF CLOUD COMPUTING ON
IT OUTSOURCING IN AN ORGANISATION AT R-MAC
SECURE TECH
A Project Report Submitted in Partial fulfilment of the requirement for the
award of Degree of

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

(INFORMATION TECHNOLOGY AND SYSTEMS MANAGEMENT)
In
NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES
(NMIMS)

Submitted by
NAME: RAMKUMAR PURUSHOTHAMAN
STUDENT ID: 77220832845

Under the guidance of

Dr. M. GOWRISANKAR, M.B.A., M.Phil., PGDCA, Ph.D
PRINCIPAL
AYYAN THIRUVALLUVAR COLLEGE OF ARTS & SCIENCE
COIMBATORE

NOVEMBER 2022
 CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “A STUDY ON EXAMINATION OF

CLOUD COMPUTING ON IT OUTSOURCING IN AN ORGANISATION AT R-

MAC SECURE TECH" is a bonafide work of Mr. RAMKUMAR PURUSHOTHAMAN

(Enroll No: 77220832845) carried out in partial fulfillment for the award of degree of Post

Graduate Diploma in Business Management (Information Technology and Systems

Management) of NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

(NMIMS) under my guidance. This project work is original and not submitted earlier for the

award of any degree / diploma or associateship of any other University / Institution.

SIGNATURE OF THE GUIDE

Dr. M. GOWRISANKAR

Place: Coimbatore

Date: 25/11/2022
 ACKNOWLEDGEMENT

I bow before my parents and the Divine almighty for showering the Divine grace on
me. I hereby express my heartfelt gratitude to my parents, well-wishers and everyone who
helped me with my project, whether directly or indirectly. First and foremost, I would like to
express my whole hearted thanks to our esteemed Director for having given me an
opportunity to pursue this project.

I personally thank Dr. M. GOWRISANKAR, Principal, Ayyan Thiruvalluvar

College of Arts & Science, Coimbatore for sharing his most precious time, the light of
knowledge with me and offered me the necessary help from time to time. He was the source
of constant inspiration and influence in arriving me to think and work in an effective manner.

I would also like to thank all my professors and coordinators for their constant
motivation and encouragements throughout my studies. Without their assistance I would not
have finished this project successfully.

RAMKUMAR PURUSHOTHAMAN
 TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO
NO
1 Introduction 1

2 Review of related literature 11

3 Research Design 15

3.1. Need for the study 15

3.2. Objectives of the study 15

3.3. Scope of the study 15

3.4. Research Methodology 16

3.5. Statistical Tools 17

3.6. Limitations of the study 18

4 Data Analysis and Interpretation 19

5 Interpretation 48

6 Summary and Recommendations 51

Bibliography 54

Appendices
Questionnaire 56
 EXECUTIVE SUMMARY

Cloud computing is the delivery of on-demand computing services -- from applications to

storage and processing power -- typically over the internet and on a pay-as-you-go basis.
Rather than owning their own computing infrastructure or data centers, companies can rent
access to anything from applications to storage from a cloud service provider.

The need for the study is significantly important for effective resource utilization, success
rate enhancement, quality improvement, and cost reduction for the IT industry in Chennai. It
explores the possible usage of cloud-enabled tools and techniques in computing,
communication, and collaboration practices and opportunities worldwide for IT
professionals. The IT professionals can share their knowledge, intelligence, and skills in the
worldwide collaborative environment even without physical migration. The proposed cloud-
enabled framework will be an essential instrumental to facilitate the outsourcing of almost
everything in an inter or intra-organizational environment.

Research methodology is a way to systematically solve the research problem. In this we study
the various steps that are generally adopted by the researcher in studying his/her research to
know not only the research methods and techniques but also the methodology. The research
tool will be used by the researcher is questionnaire. The questionnaire consists of various
questions dimensions related to the practices of the organization. The sample size is 120
approximately with measures 50% of the universe. Simple random sampling is used for this
research. The questionnaire has been distributed to IT department and explained individually
to respondents about the subject of the survey. Both primary and secondary data has to be
used in this study. Primary data has been collected directly from the respondents using
questionnaire specially prepared for this purpose. Secondary data has been collected from
various related books, magazines, reports prepared by research scholars, various websites,
etc. Data will be partially collected from respondents and analyzed that what are the cloud
security risks and how must they be handled and what possible issues that occur with cloud
computing on IT out source. The data will be collected and classified, tabulated, analyzed and
interrupted in percentage to carry out the objectives of the study. The simplified data is then
portrayed in the forms of tables and diagrams, Percentage Analysis, Chi-square Analysis and
Karl’s Pearson correlation.
 LIST OF TABLES

TABLE TITLE OF THE TABLES PAGE

NO NO
4.1.1 CLASSIFICATION OF GENDER 19

4.1.2 CLASSIFICATION OF AGE 20

4.1.3 CLASSIFICATION OF EXPERIENCE 21

4.1.4 CLASSIFICATION OF EDUCATION QUALIFICATION 22

4.1.5 CLASSIFICATION OF INCOME 23

4.1.6 NUMBER OF EMPLOYEES WORKING 24

4.1.7 AWARENESS ON CLOUD COMPUTING 25

4.1.8 AWARENESS ON CLOUD COMPUTING WORKING 26

4.1.9 CLOUD COMPUTING BENEFITS IN IT 27

4.1.10 CLOUD COMPUTING USAGE 28

4.1.11 ESTABLISHMENT OF CLOUD DEPLOYMENT MODELS 29

4.1.12 LAYER OF THE CLOUD LIKELY TO APPROACH 30

4.1.13 MOST SUITABLE FOR AN IT COMPANY 31

4.1.14 REASONS BEHIND POSSIBLE ENGAGEMENT IN THE CLOUD 32

COMPUTING

4.1.15 ORGANIZATION VIEW AS THE MOST IMPORTANT BENEFITS 34

OF CLOUD COMPUTING

4.1.16 GREATEST BARRIERS FOR ADOPTION OF CLOUD COMPUTING 35

IN ORGANIZATION

4.1.17 TYPES OF APPLICATIONS USE (OR) PLAN TO DEPLOY INTO A 36

CLOUD

4.1.18 NAME FEW CLOUD SERVICE PROVIDERS IN GLOBAL 37

4.1.19 CLOUD SERVICE PROVIDERS HAS THE BEST BRAND IMAGE 38

IN IT INDUSTRY

4.1.20 CLOUD SERVICE PROVIDERS GIVES THE BEST SERVICE IN IT 39

INDUSTRY
4.1.21 CLOUD SERVICE PROVIDERS GIVES THE BEST PRICING IN IT 40
INDUSTRY

4.1.22 CLOUD SERVICE PROVIDERS HAS THE SECURED SERVICES 41

 LIST OF CHARTS

CHART TITLE OF THE CHARTS PAGE

NO NO
4.1.1 CLASSIFICATION OF GENDER 19

4.1.2 CLASSIFICATION OF AGE 20

4.1.3 CLASSIFICATION OF EXPERIENCE 21

4.1.4 CLASSIFICATION OF EDUCATION QUALIFICATION 22

4.1.5 CLASSIFICATION OF INCOME 23

4.1.6 NUMBER OF EMPLOYEES WORKING 24

4.1.7 AWARENESS ON CLOUD COMPUTING 25

4.1.8 AWARENESS ON CLOUD COMPUTING WORKING 26

4.1.9 CLOUD COMPUTING BENEFITS IN IT 27

4.1.10 CLOUD COMPUTING USAGE 28

4.1.11
ESTABLISHMENT OF CLOUD DEPLOYMENT MODELS 29

4.1.12 LAYER OF THE CLOUD LIKELY TO APPROACH 30

4.1.13 MOST SUITABLE FOR AN IT COMPANY 31

4.1.14 REASONS BEHIND POSSIBLE ENGAGEMENT IN THE CLOUD 33

COMPUTING

4.1.15 ORGANIZATION VIEW AS THE MOST IMPORTANT BENEFITS 34

OF CLOUD COMPUTING

4.1.16 GREATEST BARRIERS FOR ADOPTION OF CLOUD 35

COMPUTING IN ORGANIZATION

4.1.17 TYPES OF APPLICATIONS USE (OR) PLAN TO DEPLOY INTO A 36

CLOUD

4.1.18 NAME FEW CLOUD SERVICE PROVIDERS IN GLOBAL 37

4.1.19 CLOUD SERVICE PROVIDERS HAS THE BEST BRAND IMAGE 38

IN IT INDUSTRY
4.1.20 CLOUD SERVICE PROVIDERS GIVES THE BEST SERVICE IN IT 39
INDUSTRY

4.1.21 CLOUD SERVICE PROVIDERS GIVES THE BEST PRICING IN IT 40

INDUSTRY

4.1.22 CLOUD SERVICE PROVIDERS HAS THE SECURED SERVICES 41

 CHAPTER I
INTRODUCTION
1.1. CONCEPT INTRODUCTION
Cloud computing is the delivery of on-demand computing services -- from
applications to storage and processing power -- typically over the internet and on a pay-as-
you-go basis.

Cloud Computing Works

Rather than owning their own computing infrastructure or data centers, companies can rent
access to anything from applications to storage from a cloud service provider.
One benefit of using cloud computing services is that firms can avoid the upfront cost and
complexity of owning and maintaining their own IT infrastructure, and instead simply pay for
what they use, when they use it.
In turn, providers of cloud computing services can benefit from significant economies of
scale by delivering the same services to a wide range of customers.
What cloud computing services are available?

Cloud computing services cover a vast range of options now, from the basics of storage,
networking, and processing power through to natural language processing and artificial
intelligence as well as standard office applications. Pretty much any service that doesn't
require you to be physically close to the computer hardware that you are using can now be
delivered via the cloud.

Examples of cloud computing

Cloud computing underpins a vast number of services. That includes consumer services like
Gmail or the cloud back-up of the photos on your smartphone, though to the services which
allow large enterprises to host all their data and run all of their applications in the cloud.
Netflix relies on cloud computing services to run its its video streaming service and its other
business systems too, and have a number of other organisations.
Cloud computing is becoming the default option for many apps: software vendors are
increasingly offering their applications as services over the internet rather than standalone
products as they try to switch to a subscription model. However, there is a potential downside

1
to cloud computing, in that it can also introduce new costs and new risks for companies using
it.
Why is it called cloud computing?
A fundamental concept behind cloud computing is that the location of the service, and many
of the details such as the hardware or operating system on which it is running, are largely
irrelevant to the user. It's with this in mind that the metaphor of the cloud was borrowed from
old telecoms network schematics, in which the public telephone network (and later the
internet) was often represented as a cloud to denote that the just didn't matter -- it was just a
cloud of stuff. This is an over-simplification of course; for many customers location of their
services and data remains a key issue.

Cloud sourcing
Cloud sourcing is an arrangement in which a company pays a third-party cloud hosting
provider to deliver and support IT services that could be provided in-house. Cloud sourcing is
similar to outsourcing, but the cost for cloud computing services is usually based on a per-use
utility model instead of an annual or monthly contract.
Cloud computing refers to the delivery of hosted IT services over a network, such as the
internet. It enables an organization and its users to access and deploy resources -- including
virtual infrastructure, storage, development tools and even full applications -- that are hosted
by a third-party provider, rather than having to implement and maintain those resources in-
house.
With cloud sourcing, an organization not only has access to these types of hosted services,
but generally relies on the provider to support, maintain and manage those services on its
behalf. This is the same paradigm used in traditional IT outsourcing.

Cloud sourcing pros and cons

Cloud sourcing, like general IT outsourcing, can help an organization reduce on-premises
infrastructure costs and increase operational efficiency. It can also minimize the time an IT
team needs to spend on manual and repetitive tasks and allow them to focus instead on more
strategic projects that bring greater value to the business.
A company that uses cloud sourcing, however, can also face some potential challenges. For
example, as is sometimes the case with cloud technology, in general, an organization might
fear losing direct control over IT resources and processes when they move to a cloud
2
sourcing model. This is especially true when an enterprise has strict security and compliance
requirements.
What's more, cloud sourcing might require an organization to dedicate specific resources and
staff to manage the relationship, as well as the service-level agreements, that come with the
use of a third-party provider.

1.1.1. BENEFITS OF OUTSOURCING CLOUD MANAGEMENT

Enterprises looking to adopt the cloud into their infrastructure will have a lot of cloud
services to manage. From the initial migration to automating business workflows in the
cloud, the applications of cloud computing for enterprises are endless. To help consolidate
their IT resources, many companies look to outsource some of their cloud management
capabilities. That’s where managed cloud services come in.
Managed cloud service providers take care of various cloud management functions for your
enterprise. Outsourcing these services allows your IT team to focus on cloud workflows and
applications that require their attention. Some providers give users a comprehensive set of
management capabilities while others provide more specific management options.
Though each managed services provider offers different services, each one can benefit a
cloud user in various ways. If your enterprise is considering managed cloud services, you
want to be aware of those benefits. To understand what outsourcing cloud services can
provide for you, we’ve outlined the benefits of managed services for cloud computing.

Creating a cloud migration strategy

The first step in an enterprise’s cloud journey is designing and enacting a plan for migrating
their data to the cloud. Your enterprise might be anxious to push everything onto the cloud as
fast as possible. However, this would be a huge mistake. If your enterprise isn’t familiar with
your cloud environment, you’ll be putting your data at risk by migrating it too early.
Managed service providers can help cloud users create a cloud migration strategy that’s
tailored to meet their business needs. Most providers offer the support of cloud experts to
help enterprise understand what their cloud environment is and how their company should
implement it. The experts can help enterprises figure out how exactly to migrate their data to
the cloud. This includes determining what data to migrate first and what pace you should
move your data at.

3
You can also establish a roadmap for your cloud migration journey with a managed service
provider. Planning out your migration timeline allows your enterprise to understand the time
frame and cost your cloud transformation requires.

Cost efficient managed services

Outsourcing cloud services to managed service providers can potentially be cost efficient for
your enterprise. Implementing cloud solutions requires you to train your IT team in order to
take advantage of the cloud’s capabilities. That could cost your company a lot of money,
especially if your enterprise plans to heavily use the cloud for various solutions.
It may be financially beneficial for your company to outsource those cloud management
functions instead of handling them yourself. With managed service providers, you know that
your cloud management will be handled by experts that fully know the cloud environment
you’re using. Thus, outsourcing those management capabilities might save your enterprise
money in the long run, especially since you won’t need to spend time and money getting your
company’s team up to speed.

Flexible managed services

Managed service providers are often flexible. They understand that not every enterprise is the
same when it comes to cloud needs, knowledge, and ability. Therefore, managed cloud
service vendors can customize their management capabilities to better suit your specific cloud
needs. If they offer multiple different managed services, the can help you decide which
service should be taken care of by your enterprise and which they should manage for you.

One of the biggest benefits of the cloud is scalability. That means that the resources you use
in the cloud can grow or shrink seamlessly depending on your company’s needs. Similarly,
cloud managed services are also scalable. Managed service providers know that they need to
match the amount of resources their clients require. They can accommodate for your
enterprise’s cloud resource needs and build your cloud up or down.

Cloud provider support and knowledge

There are multiple different cloud providers on the market, from the largest public cloud
vendors to smaller cloud start-ups. Managed service providers usually tailor themselves to a
specific cloud provider, though larger ones can support multiple different ones. Your
4
enterprise may still be deciding on which cloud environments they want to implement into
their infrastructure, or they’ve already selected a cloud provider and want a managed service
vendor that helps them manage their specific cloud environment.

In any case, a managed cloud service provider will have extensive knowledge into how the
cloud environments they support operate. A managed services vendor that supports AWS, for
example, will know fully which services AWS offers and how enterprises can utilize them.
That allows them to help their clients know how they can take advantage of AWS and its
offerings. Managed service vendors provide cloud users with insights into their cloud
environments and empower them to implement the cloud successfully.

Centralized cloud managed services

When you choose a managed cloud service provider, you’re outsourcing your cloud
management capabilities to a particular vendor. That allows your enterprise to centralize your
cloud management, since every managed service will come from one provider. Most
managed service providers create programs, websites, and APIs that give their users a visual
interface to track their cloud management functions. This lets you interact with the managed
service provider with a simple program interface rather than just leaving the management to
the vendor.

1.1.2. CLOUD COMPUTING ARCHITECTURE COMMON ELEMENTS

While clouds vary widely in their implementation details, cloud computing
architecture typically includes these common elements:

Virtualization layer. Server virtualization and storage virtualization play a key role in cloud
computing architecture by delivering one of the primary cloud benefits: agility. A
virtualization layer allows providers to quickly provision or deprovision cloud servers to meet
the needs of service users.

Horizontally scalable storage. Scalability is another hallmark of cloud computing

architecture, and on the storage side of things this typically derives from technologies that
leverage large clusters of commodity hardware that can be easily and economically expanded
as the demand for infrastructure and storage resources grows.
5
Mechanisms for supporting multi-tenancy. A cloud service must provide for the physical
or virtual segregation of stored data on a per-tenant basis, and be able to track service usage
per tenant. It's worth noting that multi-tenancy is an integral feature even in private clouds: in
this context, the tenants are the different departments or work groups within the enterprise.
Web APIs. Another key element in cloud computing architecture is a set of web APIs
(utilizing standard methods such as RESTful HTTP calls, XML, and SOAP) through which
the cloud services may be invoked. This enables services to be made available through a
standard web browser or other HTTP client application.

Migrating to a cloud computing platform means your responsibility for data security goes up
considerably. Data with various levels of sensitivity is moving out of the confines of your
firewall. You no longer have control – your data could reside anywhere in the world,
depending on which cloud company you use.

Moving to the public cloud or using a hybrid cloud means the potential for cloud security
issues is everywhere along the chain. It can happen as the data is prepped for migration,
during migration, or potentially within the cloud after the data arrives. And you need to be
prepared to address this every step of the way.

Data security has been incumbent on the cloud service providers, and they have risen to the
occasion. No matter which platform you select in the debate between AWS vs. Azure vs.
Google, all sport various compliances to standards like HIPAA, ISO, PCI DSS, and SOC.

However, just because the providers offer compliance doesn’t give customers the right to
abdicate their responsibilities. They have some measure of responsibility as well, which
creates a significant cloud computing challenge. So here are eight critical concepts for data
security in the cloud.

1.2. INDUSTRY PROFILE

The market was valued at INR 301.40 Bn in 2020 and is expected to expand at a compound
annual growth rate (CAGR) of ~29.02% during the 2021 - 2025 period to reach INR 1,169.23
Bn by 2025. Cloud infrastructure includes the essential components needed for cloud

6
computing. Cloud computing involves the delivery of computing services such as servers,
storage, software, databases, networking, and analytics to customers over the internet.
IT, e-commerce, communication and media, telecom, manufacturing, transport, logistics, and
retail are the sectors that have adopted cloud infrastructure to enhance their day-to-day
operations.

Market insights:
Need for improved infrastructure, economic benefits of using cloud computing, and
government's efforts to promote digital India and IT infrastructure are a few of the factors
propelling market growth. Initiatives undertaken by the government to drive the adoption of
cloud infrastructure include investment in National Optical Fibre Network (NOFN) and
multiple e-governance portals, and governmental programs such as Digital India and
Meghraj.
Moreover, the use of innovative technologies such as AI, machine learning, advanced
analytics, and immersive media in the IT ecosystem contribute to the seamless adoption of
SaaS, IaaS, and PaaS offerings.

COVID-19 impact analysis:

The cloud infrastructure market in India is one of the few sectors that has emerged strong
amid the pandemic. With the outbreak of the pandemic and the nation's migration to virtual
operations, the demand for secure, reliable, scalable, and cost technology services
proliferated, leading to higher cloud adoption and cloud infrastructure spending.

The demand for e-learning, telemedicine, and remote working picked up on account of the
growing application of cloud computing during the lockdown. Other sectors that have
become highly dependent on cloud computing services are banking, financial services, and
insurance (BFSI), and manufacturing.

Companies covered:
 Infosys Limited
 Tata Consultancy Private Limited
 Wipro Limited
 Rackbank Datacenters Private Limited
7
  Netmagic Solutions Private Limited
 Amazon Web Services, Inc.
 Google India Private Limited
 IBM India Private Limited
 Microsoft Corporation India Private Limited
 Oracle India Private Limited

Cloud infrastructure includes the essential components needed for cloud computing. Cloud
computing involves the delivery of computing services such as servers, storage, software,
databases, networking, and analytics to customers over the internet. IT, e-commerce,
communication and media, telecom, manufacturing, transport, logistics, and retail are the
sectors that have adopted cloud infrastructure to enhance their day-to-day operations. Based
on service type, the cloud infrastructure market is segmented into Infrastructure-as-a-Service
(IaaS), Software-as-a-Service (SaaS), Platform-as-a Service (PaaS), Business Process-as-a-
Service (BPaaS), and cloud management and security services.

Cloud infrastructure includes the essential components needed for cloud computing. Cloud
computing involves the delivery of computing services such as servers, storage, software,
8
databases, networking, and analytics to customers over the internet. IT, e-commerce,
communication and media, telecom, manufacturing, transport, logistics, and retail are the
sectors that have adopted cloud infrastructure to enhance their day-to-day operations. Based
on service type, the cloud infrastructure market is segmented into Infrastructure-as-a-Service
(IaaS), Software-as-a-Service (SaaS), Platform-as-a Service (PaaS), Business Process-as-a-
Service (BPaaS), and cloud management and security services.

“Indian CIOs saw the benefits of cloud during the first wave of the pandemic in 2020,” said
Sid Nag, research vice president at Gartner. “To build business resilience and minimize the
impact of continued disruptions, investing in cloud is unavoidable. India has experienced
consistent double-digit growth in cloud spending over the last three years, the pandemic only
expedited the shift.”

1.3. COMPANY PROFILE

R-MAC Secure Tech is an IT based company, a leading global developer, manufacturer and
marketer of security devices for its clients across the globe. Product lines include the much-
needed security devices, life style and support systems and web-based software. R-MAC
Secure Tech has a history of leading-edge security solutions products. This tradition
continues through a singular focus on innovation, advanced technology and making the life of
its clients safe, secure and manageable in terms of security, time and money one of the most
important defining characteristics of a security and life support solution based company in the
early 21st century. It is one of the most valued security solutions across the globe and has
been accorded with many national and international awards for its growth and R & D. R-
MAC Secure Tech aims at displaying not just the technological innovation and prowess but
also the product diversity in various segments of vehicle, premises, mobile, other assets and
now entering Energy & Health Segments.

OUR VISION:
Our Vision is to emerge as a Global IT based Solution for customers in the field of
Security, Life Style & Life Support Systems. To identify, source and deploy infrastructure,
talent and resource in order to render superior Information Technology solutions worldwide.

9
OUR MISSION:
 To develop advanced technology products and to disseminate them through strategic
alliances with emerging and existing leaders in the field of Information Technology.
 To identify, source and deploy infrastructure, talent & resource to render a Qualitative
and Efficient service in the field of Information Technology Worldwide.
 To focus on client objectives and provide customized cutting edge solutions.
 To provide innovative solutions to the global market.

OUR SERVICES
 Website Designing And Development
 .Net Application Development
 JAVA Application Development
 CCTV Security Systems
 Security systems
 Home Automation System

WHAT WE DO
Information Technology (IT) is a critical area, and in IT, we design the technology
solutions that help make R-MAC Secure Tech a success. Our team uses Creativity,
Technology and Expertise to meet the needs of a company in an intensely competitive
market. As part of our team, the responsibilities allow each individual to define, implement
and maintain IT based security solutions as the main component of our business strategies.

R-MAC Secure Tech greatest strength is the quality and integrity and the passion they
bring to work to help others live a secured life. By providing a positive work environment
that encourages collaboration and innovation, teams are encouraged to think beyond what we
do today, to what we can become. One of the R-MAC Secure Tech values, Motivate Our
People, states that: “All the assets of our company are insignificant when compared to the
capabilities of our employees.”Every team has the pride in working for a company that has
been recognized for its R & D, Growth, and Technology which not only secures the life of
their own citizen but also masses globally. At R-MAC Secure Tech, we push the boundaries
of Information Technology every day. Micro Technologies has a culture of camaraderie and
pride in one’s work.
10
 CHAPTER – II
REVIEW OF LITERATURE

Lee et al., (2003). Increased scale and breadth of service providers. The leading outsourcing
vendors are expanding their operations on a global scale along with a wide range of services
These factors coupled with increasing number of Cloud services and management make them
serious contenders for larger deals and acquisitions in the global market. In addition, these
vendors also bring a wealth of program management expertise and governance and help their
clients achieve success for their outsourcing projects.

Dhar and Balakrishnan (2006) Adoption of multi-sourcing and higher vendor accountability.
As a result of a large number of poor executions and failure of traditional IT outsourcing
projects, many organizations are shying away from large, multi-year commitments for
outsourcing projects. Instead they are opting for short-term projects, which involve allocating
separate IT functions to different vendors. By doing this, they are leveraging skills and value
propositions of each vendor thereby reducing risk and increasing efficiency.

Buyyaa et al., (2009). Increasing use of Cloud services and virtualization. To meet the
specific requirements of clients and forge long-term relationships with them, outsourcing
vendors are embracing emerging delivery models including Cloud-based services. For
example, SaaS is a preferred delivery model for on-demand services. It provides a low-cost
access to various applications across a global network. It provides greater flexibility and
allows customers to focus on core business processes rather than developing and managing
IT infrastructure. This results in faster payback on investment, timely deployment of various
services and excellence in service delivery and minimization of risk.

F. Shimba (2010) Research confined to investigate the successful adoption of cloud

computing as a key to the realization of benefits promised by cloud computing technologies.
As organizations need the high processing capabilities, large storage capacity, IT resource
scalability, and high availability, at the lowest possible cost. In this context, cloud computing
becomes an attractive alternative media. The study explains that how an emphasis on
collaboration between clients and vendors is essential for the successful adoption of cloud
computing. This research is relevant to the proposed research because one of the dimensions
11
of the proposed study is to adopt cloud computing in IT project management for outsourcing
activities. This study motivates how outsourcing practices can be migrated over the cloud in
the next generation of IT project management practices.

Subhankar Dhar (2012) Many organizations are outsourcing their information technology
(IT) related services to a third party vendor for quite some time. However, the IT services
industry including outsourcing is going through rapid changes with the increasing adoption of
Cloud computing. The purpose of this paper is to compare global IT outsourcing with Cloud
computing along with the evolution of traditional IT services. Cloud computing is a model
for provisioning and consuming IT capabilities on a need and pay by use basis. This helps in
shifting the cost structure from capital expenditure to operating expenditure and also helps
the IT systems to be more agile. This innovative model of acquiring IT related services has
made organizations revisit their infrastructure and platform services strategy and optimize
their IT spending while improving overall agility. This paper compares global IT outsourcing
with Cloud computing along with the evolution of traditional IT services. Findings – The
impact of Cloud computing on IT outsourcing is no doubt significant. Cloud computing
represents a fundamental shift in how organizations pay for and access IT services. It has
created new opportunities for IT services providers and the outsourcing vendors will have to
modify their strategy to take advantage of this new computing paradigm. This research is
relevant for practitioners as well as researchers in the field of IT outsourcing and Cloud
computing. This research compares global outsourcing with Cloud computing along with the
evolution of IT services. Very little research has been done in this nascent and important area.

S. C. a. R. Gibbons (2012) A study of Stephen conducted to investigate the outsourcing IT to

improve the organizational performance. This study is an exploratory research which reveals
how the cloud systems facilitate the services and improve the productivity that was
envisioned but often not realized by organizations implementing old computing models, and
allow for further productivity improvements in organizations that have benefited from
previous technologies. In this research, the main focus was on the performance improvements
parameters without any consideration of the project management practices in detail,
pecifically an exploration of offshoring or outsourcing in developing countries.

Y. P. Sunil Patil (2014) a review on outsourcing with a special reference to telecom

operations. This paper was focused on outsourcing IT management and explores relevance to
12
telecom operations. In the case of telecom operators, it is observed that the basic set of
parameters influencing the decision of outsourcing is the same as the rest of the industry. It is
observed that telecom operators have extended this model by outsourcing the management of
network infrastructure, management of towers, billing systems, marketing, etc. This is
creating new working models and relationships. This research is an effort that provides a
direction for outsourcing concepts with a new dimensional thrust towards the exploration of
the possibilities to share different infrastructure now and then. And also helps with the trend
in outsourcing is multi-sourcing, collaborative innovation needs to happen where all the
vendors work together, innovate together with the client team and implement innovations.
Innovations can be in different domains such as technology, processes, products and services,
and forward-looking areas. This study didn’t address the challenges faced by IT Project
Management leaders during the development phases like scope creep, technology creeps, and
scalability issues both in terms of infrastructure and human resources in the developing
country industries.

Schneider & Sunyaev (2016).The significance of this study can be realized by considering the
importance of both CC and ITO, including their potential benefits and opportunities
concerning any organizations‟ performance. Hence, the usefulness of an effective ITO
decision making is evident. Although CC represents an evolution of ITO, it requires
companies to modify their sourcing processes because certain features related to CC may
change ITO. Consequently, companies should redefine the determinant factors of sourcing
decisions for CC and thus, ITO decisions too.

D. N. A. J, M. M. K. Muhammad Younas Imran Ghani (2016) Research contributed the

major benefits due to the amalgamation of agile software development methodology and
cloud computing. This research tried to explore the efficient facilitation of global agile
software development in the cloud environment. The researchers tried to explore the
infrastructure features required for agile development in a distributed environment. This
research is relevant to the proposed dimension of our research paper but the tools,
methodologies, approach, and analysis didn’t outline anything in the outsourcing of the agile
development approach during project execution and management practices in IT industries or
organizations.

13
Mesfin Alemu, Abel Adane, Bhupesh Kumar Singh (2020) The optimum utilization of
human resources is one of the crucial exercises in IT organizations. To provide a well
organized and cohesive working environment, organizations need to review their work
culture in reference to newly evolved tools and techniques. To reduce the development cost
of the IT projects and the optimum utilization of human resources, organizations need to
review and redesign the project development processes. The significant challenges faced by
IT organizations are the rapid switch-over (attrition) of IT professionals, physical migration
or deployment, and redeployment of the human resources. This research paper is an effort
towards the multilateral exploration of the techniques to adapt and improve the ICT enabled
project management practices in an outsourced environment. This research is an effort with
special reference to developing countries such as Ethiopia, where an acute shortage of high
skilled IT human resources and their physical migration from one project location to another
project location is a costly and challenging task. Ethiopia as a developing country and its IT
industry is challenged by several issues like the capacity of ICT infrastructure and the skilled
human resources. In such situations, IT projects are either challenged, impaired, or completed
failed due to lack of IT human resources with desired skills and ultramodern up to date IT
infrastructure. In this research paper, cloud computing technology is assumed as a key to the
solution. For this, a systematic and careful investigation using mixed data analysis approach
was used to adopt cloudbased outsourcing in IT project management practices i.e. design,
development, and testing over outsourced systems by outsourced IT human resources. The
major findings of this paper are to investigate and analyze how these cloud-based resources
can be explored without physical movement or migration. For the novel improvement in the
existing IT project management practices, the salient stakeholders’ views were collected and
analyzed for designing cloud-based outsourcing IT project management framework for the
Ethiopian IT industry. The framework was functionally tested over the cloud-based Bitrix24
platform.

14
 CHAPTER – III
RESEARCH DESIGN
3.1. NEED FOR THE STUDY
The proposed research is significantly important for effective resource utilization, success
rate enhancement, quality improvement, and cost reduction for the IT industry in Chennai. It
explores the possible usage of cloud-enabled tools and techniques in computing,
communication, and collaboration practices and opportunities worldwide for IT
professionals. The IT professionals can share their knowledge, intelligence, and skills in the
worldwide collaborative environment even without physical migration. The proposed cloud-
enabled framework will be an essential instrumental to facilitate the outsourcing of almost
everything in an inter or intra-organizational environment.

3.2. OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:
 To study on cloud computing on IT outsourcing in IT industry
SECONDARY OBJECTIVE:
 To investigate and analyze the cloud computing issues and challenges affecting the
success of the IT Projects in the IT industry.
 To identify, and explore the possible applications of cloud-enabled outsourced IT
project management tools and technologies.
 To evaluate the Performance and Productivity of the cloud computing optimum
utilization of IT resources in outsourced environments.
 To analyze the performance and satisfaction of cloud computing in IT industry

3.3. SCOPE OF THE STUDY

The scope of the study is to delimit the discovery of cloud-enabled tools, techniques, and
their applications in outsourcing practices of IT projects in Chennai IT industry. The final
contribution proposed is to design, develop, and demonstrate a framework for the IT project
management related outsourcing practices over cloud.

15
3.4. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. In this
we study the various steps that are generally adopted by the researcher in studying his/her
research to know not only the research methods and techniques but also the methodology.
Researchers also need to understand the assumptions underlying techniques and they
need to know the criteria by which they can decide that certain techniques and procedures
will be applicable to certain problems and others will not. All this means that it is necessary
for the researcher to design his methodology for his problems as the same may differ from
problem to problem.

3.4.1. RESEARCH TOOL

The research tool will be used by the researcher is questionnaire. The questionnaire
consists of various questions dimensions related to the practices of the organization.

3.4.2. SAMPLE SIZE

The sample size is 120 approximately with measures 50% of the universe. Simple
random sampling is used for this research. The questionnaire has been distributed to IT
department and explained individually to respondents about the subject of the survey.

3.4.3. SOURCE OF DATA

Both primary and secondary data has to be used in this study. Primary data has been
collected directly from the respondents using questionnaire specially prepared for this
purpose. Secondary data has been collected from various related books, magazines, reports
prepared by research scholars, various websites, etc.

3.4.4. DATA COLLECTED:

Data will be partially collected from respondents and analyzed that what are the cloud
security risks and how must they be handled and what possible issues that occur with cloud
computing on IT out source.

16
3.5. STATISTICAL TOOLS
The data will be collected and classified, tabulated, analyzed and interrupted in
percentage to carry out the objectives of the study. The simplified data is then portrayed in
the forms of tables and diagrams.
 Percentage Analysis
 Chi-square Analysis
 Karl’s Pearson correlation

 PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio in marketing comparison between two or more
data to describe Relationships. Percentage can be used to compare the relative terms. The
distribution of two or more series of data.

PERCENTAGE= NUMBER OF RESPONDENTS X 100

TOTAL RESPONDENTS

 CHI-SQUARE TEST:

A Chi-square test is a statistical hypothesis test in which the sampling distribution of the
test statistic is a chi-square distribution. The formulae used to calculate the chi – square
value is

(O – E) 2
χ2 = ∑ ––––––
E
χ2 = Pearson’s cumulative test statistic, when Asymptotically approaches a χ2 distribution.
Oi = an Observed Frequency.
Ei = an expected frequency, asserted by the null hypothesis.
n = the number of cells in the table.

 CORRELATION

This is one of the statistical tools used to measure the relationship between two or more than
two variables. The measure of correlation is coefficient of correlation.
17
Of the several mathematical methods of measuring correlation, Karl’s Pearson method
popularly known as pearsonian coefficient of correlation, is most widely used in practice. The
correlation coefficient is popularly denoted as R.

The correlation coefficient R value should be between -1 to +1. The value is 0 means there is
no relationship between the variables.

The values + ve means there is a positive relationship between the variables. The value is –
ve means there is a negative relationship between the variables.

Mathematically solved by using this equation,

3.6. LIMITATIONS OF THE STUDY

 The respondents’ responses may be biased.
 The study may not reveal real facts, since it has been conducted with small
sample size rather than exhaustive survey.
 The research framed only important questions in the questionnaire, rather than
asking more questions related to the subject.
 The respondents (samples) were chosen based upon their availability.

18
 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

TABLE NO: 4.1.1: CLASSIFICATION OF GENDER

OPINION NO OF RESPONDENTS PERCENTAGE

Male 97 80.8

Female 23 19.2

Total 120 100

Interpretation: From the above table it is clearly understood that 80.8% of the respondents
are male and the 19.2% of the respondents are female.

CHART NO: 4.1.1 : CLASSIFICATION OF GENDER

19
 TABLE NO: 4.1.2: CLASSIFICATION OF AGE

OPINION NO OF RESPONDENTS PERCENTAGE

Below 22 yrs 11 9.16

22 - 26 yrs 13 10.8

26 - 30 yrs 57 47.5

30-35 yrs 23 19.16

Above 35 yrs 16 13.3

Total 120 100

Interpretation: From the above table it is inferred that 9.1% of the respondents are below
22 yrs, 10.8% of the respondents are 22-26 years, 47.5% of them are 26-30 years of age,
19.1% respondents are 30-35 years and the rest of them are above 35 years.

CHART NO: 4.1.2: CLASSIFICATION OF AGE

20
 TABLE NO: 4.1.3: CLASSIFICATION OF EXPERIENCE

NO OF
OPINION RESPONDENTS PERCENTAGE

Fresher 9 7.5

Less than 2 yrs 2 1.6

2.1-5 yrs 27 22.5

5.1-8 yrs 48 40

above 8 yrs 34 28.3

Total 120 100

Interpretation: From the above table it is inferred that 7.5% of the respondents are fresher,
1.6% of the respondents are less than 2 years experience, 22.5% of them are 2.1-5 years
experience, 40% of them are 5.1-8 years experience and 28.3% respondents are above 8
years experience.

CHART NO: 4.1.3: CLASSIFICATION OF EXPERIENCE

21
 TABLE NO: 4.1.4: CLASSIFICATION OF EDUCATION QUALIFICATION

NO OF
OPINION RESPONDENTS PERCENTAGE

Hsc 2 1.7

Ug 72 60

Pg 45 37.5

Diploma 0 0

Others 1 0.8

Total 120 100

Interpretation: From the above table it is inferred that 1.7% of the respondents are HSC
qualified, 60% of the respondents are UG qualified, 37.5% of them are PG qualified and .8%
respondents are other qualified.

CHART NO: 4.1.4: CLASSIFICATION OF EDUCATION QUALIFICATION

22
 TABLE NO: 4.1.5: CLASSIFICATION OF INCOME

OPINION NO OF RESPONDENTS PERCENTAGE

Below 10000 1 0.9

10001 – 15000 5 4.16

15001 – 20000 9 7.5

20001 – 30000 17 14.7

Above 30000 88 75.9

Total 120 100

Interpretation: From the above table it is inferred that .9% of the respondents are getting
below 10000 income, 4.16% of the respondents are getting 10001 – 15000 income, 7.5% of
them are getting 15001 – 20000 income, 14.7% respondents are getting 20001 – 30000
income and 75.9% respondents are getting above 30000 income.

CHART NO: 4.1.5: CLASSIFICATION OF INCOME

23
 TABLE NO: 4.1.6: NUMBER OF EMPLOYEES WORKING

OPINION NO OF RESPONDENTS PERCENTAGE

Less than 100 26 22

100-500 15 12.5

501-1,000 10 8.5

1,001-5,000 22 18.6

5,001-10,000 9 7.6

More than 10,000 38 32.2

Total 120 100

Interpretation: From the above table it is inferred that 22% of the respondents are less than
100 employees, 12.5% of the respondents are 100-500 employees, 8.5% of them are getting
501-1000 employees, 18.6% respondents are 1001-5000 and 7.6% respondents are 50001-
10000 and 32.2% of them are more than 10000.

CHART NO: 4.1.6: NUMBER OF EMPLOYEES WORKING

24
 TABLE: 4.1.7 AWARENESS ON CLOUD COMPUTING

Particulars No of Respondents Percentage (%)

Yes 102 85

No 18 15

Total 120 100

Interpretation: The above table shows 85% of respondents are agreed that they know about
cloud computing and 15% of the respondents are denied they don’t know about cloud
computing.

CHART 4.1.7 AWARENESS ON CLOUD COMPUTING

25
 TABLE: 4.1.8 AWARENESS ON CLOUD COMPUTING WORKING

Particulars No of Respondents Percentage (%)

Yes 93 77.5

No 27 22.5

Total 120 100

Interpretation: The above table shows 77.5% of respondents are agreed that they know
how cloud computing works and 22.5% of the respondents are denied they don’t know how
cloud computing works.

CHART 4.1.8 AWARENESS ON CLOUD COMPUTING WORKING

26
 TABLE: 4.1.9 CLOUD COMPUTING BENEFITS IN IT

Particulars No of Respondents Percentage (%)

Yes 114 95

No 6 5

Total 120 100

Interpretation: The above table shows 95% of respondents said yes they are benefited by
cloud computing and 5% of the respondents are denied about the same.

CHART 4.1.9 CLOUD COMPUTING BENEFITS IN IT

27
 TABLE: 4.1.10 CLOUD COMPUTING USAGE

Particulars No of Respondents Percentage (%)

Yes 97 80.8

No 23 19.1

Total 120 100

Interpretation: The above table shows 80.8% of respondents said yes their company is
using cloud computing and 19.1% of the respondents are denied about the same.

CHART 4.1.10 CLOUD COMPUTING USAGE

28
 TABLE: 4.1.11 ESTABLISHMENT OF CLOUD DEPLOYMENT MODELS

Particulars No of Respondents Percentage (%)

Yes 74 61.66

No 46 38.33

Total 120 100

Interpretation: The above table shows 61.6% of the respondents said yes they know how
cloud computing deployment done and 38.3% of the respondents are denied about the same.

CHART 4.1.11 ESTABLISHMENT OF CLOUD DEPLOYMENT MODELS

29
 TABLE: 4.1.12 LAYER OF THE CLOUD LIKELY TO APPROACH

Particulars No of Percentage (%)

Respondents

Individual software packages (SaaS) 54 45

Complete operating system and software 30

package available via cloud services (PaaS) 25

Just infrastructure services such as storage, 21

network, etc (IaaS) 17.5

Security services in the cloud 15 12.5

Total 120 100

Interpretation: The above table shows 45% of the respondents said Individual software
packages (SaaS) layer is most likely to approach, 25% of the respondents said Complete
operating system and software package available via cloud services (PaaS) layer is most
likely to approach and 12.5% of the respondents said Security services in the cloud layer is
most likely to approach.
CHART 4.1.12 LAYER OF THE CLOUD LIKELY TO APPROACH

30
 TABLE: 4.1.13 MOST SUITABLE FOR AN IT COMPANY

Particulars No of Percentage (%)

Respondents

Public Cloud (owned and managed by unrelated 25

business) 20.83

Private Cloud (owned and managed internally) 53 44.16

Partner Cloud (owned and managed by a trusted 42

partner) 35

Total 120 100

Interpretation: The above table shows 44% of the respondents said Private Cloud (owned
and managed internally) is most suitable for IT company, 20.8% of the respondents said
Public Cloud (owned and managed by unrelated business) is most suitable for IT company
and 35% of the respondents said Partner Cloud (owned and managed by a trusted partner) is
most likely to approach.

CHART 4.1.13 MOST SUITABLE FOR AN IT COMPANY

31
 TABLE: 4.1.14 REASONS BEHIND POSSIBLE ENGAGEMENT IN THE CLOUD
COMPUTING

Particulars No of Respondents Percentage (%)

Remove economic/expertise barriers impeding to 30

modernize business processes 10.6

Avoiding capital expenditure in hardware, software, 66

IT support, Information Security by outsourcing
infrastructure/platforms/services 23.4

Increasing computing capacity and business 64

performance 22.7

Diversification of IT systems 34 12.09

Business Continuity and Disaster recovery 49

capabilities 17.4

Local and global optimization of IT infrastructure 38

through automated management of virtual machines 13.5

Total 281 100

Interpretation: The above table shows 23.4% of the respondents said Avoiding capital
expenditure in hardware, software, IT support, Information Security by outsourcing
infrastructure/platforms/services is the possible engagement in the cloud computing, 22.7%
of the respondents said Increasing computing capacity and business performance is the
possible engagement in the cloud computing and 12% of the respondents said diversification
of IT systems is the possible engagement in the cloud computing.

32
CHART 4.1.14 REASONS BEHIND POSSIBLE ENGAGEMENT IN THE CLOUD
COMPUTING

33
TABLE: 4.1.15 ORGANIZATION VIEW AS THE MOST IMPORTANT BENEFITS
OF CLOUD COMPUTING

Particulars No of Percentage (%)

Respondents

Cost savings on hardware / software 75 25.5

Cost savings on IT operations staff 54 18.3

Ability to rapidly launch new products and 55

services 18.7

Convenience for the development teams 47 15.9

Pricing flexibility 43 14.6

Outsourcing of non-core competencies 20 6.8

Total 294 100

Interpretation: The above table shows 25.5% of the respondents said cost savings on
hardware/software is the most important benefits of cloud computing, 18.3% of the
respondents said Cost savings on IT operations staff is the most important benefits of cloud
computing and 6.8% of the respondents said Outsourcing of non-core competencies is the
most important benefits of cloud computing.
CHART 4.1.15 ORGANIZATION VIEW AS THE MOST IMPORTANT BENEFITS
OF CLOUD COMPUTING

34
 TABLE: 4.1.16 GREATEST BARRIERS FOR ADOPTION OF CLOUD
COMPUTING IN ORGANIZATION

Particulars No of Respondents Percentage (%)

Reliability 41 17.9

Performance 54 23.5

Geographic Location of Cloud Provider Data 43

Centers 18.7

Security 62 27.07

Lack of Management Understanding / Willing to 29

Innovate 12.6

Total 229 100

Interpretation: The above table shows 27% of the respondents feel Security is the greatest
barriers for adoption of cloud computing in your organization, 23.5% of the respondents feel
Performance is the greatest barriers for adoption of cloud computing in your organization and
12.6% of the respondents feel Lack of Management Understanding / Willing to Innovate is
the greatest barriers for adoption of cloud computing in your organization.

CHART 4.1.16 GREATEST BARRIERS FOR ADOPTION OF CLOUD

COMPUTING IN ORGANIZATION

35
TABLE: 4.1.17 TYPES OF APPLICATIONS USE (OR) PLAN TO DEPLOY INTO A
CLOUD

Particulars No of Respondents Percentage (%)

Development 63 22.8

Testing/QA/Staging 50 18.1

Ecommerce application 36 13.04

Internal enterprise application (e.g., HCM, Payroll, 48

CRM, ERP) 17.3

Monitoring / Application Performance 45

Management 16.3

Security/Compliance 34 12.3

Total 276 100

Interpretation: The above table shows 22.8% of the respondents feel Development types of
applications they are using or plan to deploy into a cloud, 18% of the respondents feel
Testing/QA/Staging types of applications they are using or plan to deploy into a cloud and
12.3% of the respondents feel Security/Compliance types of applications they are using or
plan to deploy into a cloud.

CHART 4.1.17 TYPES OF APPLICATIONS USE (OR) PLAN TO DEPLOY INTO A

CLOUD

36
 TABLE: 4.1.18 NAME FEW CLOUD SERVICE PROVIDERS IN GLOBAL

Particulars No of Percentage (%)

Respondents

Amazon Web Services 97 30.4

Microsoft Azure 73 22.8

Google Cloud Platform 62 19.4

IBM Cloud 34 10.6

Oracle 34 10.6

VMware 19 5.9

Total 319 100

Interpretation: The above table shows 30.4% of the respondents said Amazon Web
Services is the cloud service providers, 22.8% of the respondents said Microsoft Azure is the
cloud service providers and 5.9% of the respondents said VMware is the cloud service
providers.

CHART 4.1.18 NAME FEW CLOUD SERVICE PROVIDERS IN GLOBAL

37
 TABLE: 4.1.19 CLOUD SERVICE PROVIDERS HAS THE BEST BRAND IMAGE
IN IT INDUSTRY

Particulars No of Percentage (%)

Respondents

Amazon Web Services 85 38.11

Microsoft Azure 57 25.5

Google Cloud Platform 40 17.9

IBM Cloud 20 8.9

Oracle 12 5.3

VMware 9 4.03

Total 223 100

Interpretation: The above table shows 38% of the respondents said Amazon Web Services
provider is having the best brand image in IT Industry, 25.5% of the respondents said
Microsoft Azure provider is having the best brand image in IT Industry and 4% of the
respondents said VMware provider is having the best brand image in IT Industry.

CHART 4.1.19 CLOUD SERVICE PROVIDERS HAS THE BEST BRAND IMAGE
IN IT INDUSTRY

38
TABLE: 4.1.20 CLOUD SERVICE PROVIDERS GIVES THE BEST SERVICE IN IT
INDUSTRY

Particulars No of Percentage (%)

Respondents

Amazon Web Services 82 38.4

Microsoft Azure 53 24.8

Google Cloud Platform 37 17.3

IBM Cloud 19 8.9

Oracle 11 5.16

VMware 11 5.16

Total 213 100

Interpretation: The above table shows 38.4% of the respondents said Amazon Web
Services provider is giving the best service in IT Industry, 24.8% of the respondents said
Microsoft Azure is giving the best service in IT Industry and 5% of the respondents said
VMware/Oracle provider is giving the best service in IT Industry.

CHART 4.1.20 CLOUD SERVICE PROVIDERS GIVES THE BEST SERVICE IN IT

INDUSTRY

39
TABLE: 4.1.21 CLOUD SERVICE PROVIDERS GIVES THE BEST PRICING IN IT
INDUSTRY

Particulars No of Percentage (%)

Respondents

Amazon Web Services 78 40.2

Microsoft Azure 45 23.19

Google Cloud Platform 29 14.9

IBM Cloud 17 8.7

Oracle 14 7.2

VMware 11 5.6

Total 194 100

Interpretation: The above table shows 40% of the respondents said Amazon Web Services
provider is giving the best pricing in IT Industry, 23% of the respondents said Microsoft
Azure is giving the best pricing in IT Industry and 5.6% of the respondents said VMware
provider is giving the best pricing in IT Industry.

CHART 4.1.21 CLOUD SERVICE PROVIDERS GIVES THE BEST PRICING IN IT

INDUSTRY

40
 TABLE: 4.1.22 CLOUD SERVICE PROVIDERS HAS THE SECURED SERVICES

Particulars No of Percentage (%)

Respondents

Amazon Web Services 80 35.08

Microsoft Azure 57 25

Google Cloud Platform 38 16.6

IBM Cloud 20 8.7

Oracle 18 7.8

VMware 15 6.5

Total 228 100

Interpretation: The above table shows 35% of the respondents said Amazon Web Services
provider is giving the best secured services in IT Industry, 25% of the respondents said
Microsoft Azure is giving the best secured services in IT Industry and 6.5% of the
respondents said VMware provider is giving the best secured services in IT Industry.

CHART 4.1.22 CLOUD SERVICE PROVIDERS HAS THE SECURED SERVICES

41
 4.2. CHI- SQUARE TEST
I. Chi-square is the sum of the squared difference observed (o) and the expected (e) data (or
the deviation, d), divided by the expected data in all possible categories.
Null hypothesis (Ho):
There is no relationship between the work experience of the employees and
greatest barriers for adoption of cloud computing in your organization.

Alternate hypothesis (H1):

There is a relationship between the work experience of the employees and greatest
barriers for adoption of cloud computing in your organization.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Experience (in yrs) *
Greatest barriers for
adoption of cloud 120 100.0% 0 .0% 120 100.0%
computing in your
organization

Experience (in yrs) * Greatest barriers for adoption of cloud computing in your
organization Crosstabulation
Greatest barriers for adoption of cloud
computing in your organization
Lack of
Geograph Managem
ic ent
Location Understa
of Cloud nding /
Provider Willing
Reliabil Performa Data Securit to
ity nce Centers y Innovate Total
Experience Fresher Count 3 2 1 2 0 8
(in yrs)
Expected
3.1 1.9 1.4 .9 .8 8.0
Count
42
 Less than Count 1 0 0 1 0 2
2 yrs Expected
.8 .5 .4 .2 .2 2.0
Count
2 -5 yrs Count 10 9 5 3 0 27
Expected
10.4 6.3 4.7 2.9 2.7 27.0
Count
5 -8 yrs Count 21 9 11 1 7 49
Expected
18.8 11.4 8.6 5.3 4.9 49.0
Count
above 8 Count 11 8 4 6 5 34
yrs Expected
13.0 7.9 6.0 3.7 3.4 34.0
Count
Total Count 46 28 21 13 12 120

Expected
46.0 28.0 21.0 13.0 12.0 120.0
Count

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 19.243a 16 .256
Likelihood Ratio 23.305 16 .106
Linear-by-Linear
1.227 1 .268
Association
N of Valid Cases 120
a. 16 cells (64.0%) have expected count less than 5. The
minimum expected count is .20.

INTERPRETATION:
From the above table, p value is found to be 0.256 which is greater than 0. 05. Hence, null
hypothesis (H0) is accepted and alternate hypothesis (H1) is rejected. Therefore, there is no
relationship between the work experience of the employees and greatest barriers for adoption
of cloud computing in your organization.

43
II. Null hypothesis (Ho):
There is no relationship between the age of the employees and layer of Cloud
would be most likely to approach.

Alternate hypothesis (H1):

There is a relationship between the age of the employees and layer of Cloud
would be most likely to approach.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age (in yrs) * Layer of
the cloud would you be 120 100.0% 0 .0% 120 100.0%
most likely to approach

Age (in yrs) * Layer of the cloud would you be most likely to approach Crosstabulation
Layer of the cloud would you be most likely to
approach
Complete
operating
system and Just
software infrastructur
package e services
Individual available via such as
software cloud storage, Security
packages services network, etc services in
(SaaS) (PaaS) (IaaS) the cloud Total
Age (in 22 - 26 yrs Count 6 2 2 1 11
yrs)
Expected
4.7 2.9 2.0 1.4 11.0
Count
26 - 30 yrs Count 30 16 13 10 69
Expected
29.3 18.4 12.6 8.6 69.0
Count
44
 30-35 yrs Count 12 7 3 2 24
Expected
10.2 6.4 4.4 3.0 24.0
Count
Above 35 Count 3 7 4 2 16
yrs Expected
6.8 4.3 2.9 2.0 16.0
Count
Total Count 51 32 22 15 120
Expected
51.0 32.0 22.0 15.0 120.0
Count

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 6.748a 9 .663
Likelihood Ratio 7.091 9 .628
Linear-by-Linear
.478 1 .489
Association
N of Valid Cases 120
a. 9 cells (56.3%) have expected count less than 5. The
minimum expected count is 1.38.

INTERPRETATION:
From the above table, p value is found to be 0.663 which is greater than 0. 05. Hence, null
hypothesis (H0) is accepted and alternate hypothesis (H1) is rejected. Therefore, there is no
relationship between the age of the employees and layer of Cloud would be most likely to
approach.

45
 4.3. ANALYSIS USING KARL PEARSON’S CORRELATION
Correlation analysis is the statistical tool used to measure the degree to which two variables
are linearly related to each other. Correlation measures the degree of association between two
variables.
Null hypothesis (H0):
There is a positive relationship between the Cloud Service Providers gives the best
service in IT industry and Cloud Service Providers gives the best pricing in IT industry.

Alternate hypothesis (H1):

There is negative relationship between the Cloud Service Providers gives the best
service in IT industry and Cloud Service Providers gives the best pricing in IT industry.

Correlations
Cloud Service Cloud Service
Providers Providers
gives the best gives the best
service in IT pricing in IT
industry industry
Cloud Service Pearson
1 .579**
Providers gives the best Correlation
service in IT industry Sig. (2-tailed) .000
N 120 120
Cloud Service Pearson
.579** 1
Providers gives the best Correlation
pricing in IT industry Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).

= .579
INFERENCE: Since r is positive, there is a positive relationship between the Cloud
Service Providers gives the best service in IT industry and Cloud Service Providers gives the
best pricing in IT industry.
46
II. Null hypothesis (H0):
There is a positive relationship between the cloud computing beneficial in IT industry
and organization view as the most important benefits of cloud computing.

Alternate hypothesis (H1):

There is a negative relationship between the cloud computing beneficial in IT
industry and organization view as the most important benefits of cloud computing.

Correlations
Organization
view as the
most
Cloud important
computing benefits of
beneficial in cloud
IT industry computing
Cloud computing Pearson
1 -.091
beneficial in IT industry Correlation
Sig. (2-tailed) .324
N 119 119
Organization view as Pearson
-.091 1
the most important Correlation
benefits of cloud Sig. (2-tailed) .324
computing
N 119 120

= -.091
INFERENCE:
Since r is negative, there is a negative relationship between the cloud computing beneficial in
IT industry and organization view as the most important benefits of cloud computing.

47
 CHAPTER V
INTERPRETATION

5.1. FINDINGS

 80.8% of the respondents are male and the 19.2% of the respondents are female.
 9.1% of the respondents are below 22 yrs, 10.8% of the respondents are 22-26 years,
47.5% of them are 26-30 years of age, 19.1% respondents are 30-35 years and the rest
of them are above 35 years.
 7.5% of the respondents are fresher, 1.6% of the respondents are less than 2 years
experience, 22.5% of them are 2.1-5 years experience, 40% of them are 5.1-8 years
experience and 28.3% respondents are above 8 years experience.
 1.7% of the respondents are HSC qualified, 60% of the respondents are UG qualified,
37.5% of them are PG qualified and .8% respondents are other qualified.
 .9% of the respondents are getting below 10000 income, 4.16% of the respondents are
getting 10001 – 15000 income, 7.5% of them are getting 15001 – 20000 income,
14.7% respondents are getting 20001 – 30000 income and 75.9% respondents are
getting above 30000 income.
 22% of the respondents are less than 100 employees, 12.5% of the respondents are
100-500 employees, 8.5% of them are getting 501-1000 employees, 18.6%
respondents are 1001-5000 and 7.6% respondents are 50001-10000 and 32.2% of
them are more than 10000.
 85% of respondents are agreed that they know about cloud computing and 15% of the
respondents are denied they don’t know about cloud computing.
 77.5% of respondents are agreed that they know how cloud computing works and
22.5% of the respondents are denied they don’t know how cloud computing works.
 95% of respondents said yes they are benefited by cloud computing and 5% of the
respondents are denied about the same.
 80.8% of respondents said yes their company is using cloud computing and 19.1% of
the respondents are denied about the same.
 61.6% of the respondents said yes they know how cloud computing deployment done
and 38.3% of the respondents are denied about the same.

48
 45% of the respondents said Individual software packages (SaaS) layer is most likely
to approach and 12.5% of the respondents said Security services in the cloud layer is
most likely to approach.
 44% of the respondents said Private Cloud (owned and managed internally) is most
suitable for IT company and 20.8% of the respondents said Public Cloud (owned and
managed by unrelated business) is most suitable for IT company.
 23.4% of the respondents said Avoiding capital expenditure in hardware, software, IT
support, Information Security by outsourcing infrastructure/platforms/services is the
possible engagement in the cloud computing and 12% of the respondents said
diversification of IT systems is the possible engagement in the cloud computing.
 25.5% of the respondents said cost savings on hardware/software is the most
important benefits of cloud computing and 6.8% of the respondents said Outsourcing
of non-core competencies is the most important benefits of cloud computing.
 27% of the respondents feel Security is the greatest barriers for adoption of cloud
computing in your organization and 12.6% of the respondents feel Lack of
Management Understanding / Willing to Innovate is the greatest barriers for adoption
of cloud computing in your organization.
 22.8% of the respondents feel Development types of applications they are using or
plan to deploy into a cloud and 12.3% of the respondents feel Security/Compliance
types of applications they are using or plan to deploy into a cloud.
 30.4% of the respondents said Amazon Web Services is the cloud service providers
and 5.9% of the respondents said VMware is the cloud service providers.
 38% of the respondents said Amazon Web Services provider is having the best brand
image in IT Industry and 4% of the respondents said VMware provider is having the
best brand image in IT Industry.
 38.4% of the respondents said Amazon Web Services provider is giving the best
service in IT Industry and 5% of the respondents said VMware/Oracle provider is
giving the best service in IT Industry.
 40% of the respondents said Amazon Web Services provider is giving the best pricing
in IT Industry and 5.6% of the respondents said VMware provider is giving the best
pricing in IT Industry.

49
  35% of the respondents said Amazon Web Services provider is giving the best
secured services in IT Industry and 6.5% of the respondents said VMware provider is
giving the best secured services in IT Industry.

CHI- SQUARE TEST

 There is no relationship between the work experience of the employees and greatest
barriers for adoption of cloud computing in your organization.
 There is no relationship between the age of the employees and layer of Cloud would
be most likely to approach.

KARL PEARSON’S CORRELATION

 There is a positive relationship between the Cloud Service Providers gives the best
service in IT industry and Cloud Service Providers gives the best pricing in IT
industry.
 There is a negative relationship between the cloud computing beneficial in IT industry
and organization view as the most important benefits of cloud computing.

50
 CHAPTER – VI
SUMMARY AND RECOMMENDATIONS

6.1 SUGGESTION RECOMMENDATIONS

 Most offered service is the software (SaaS) as it is chosen from more than half of
those that offer the service, but also big percentage have chosen Infrastructure as
service (IaaS) and Platform as service (PaaS).
 Biggest number of companies believes that the data in the cloud is safe. Still, almost
one third are either not sure or don’t know at all. Biggest number of those that have
answered the questionnaire are aware that while using cloud services they should lean
on the legislation for personal data protection in order to protect themselves from
computer crime,
 We envision that the low cost of using cloud computing is a key driver of its wide
acceptance by individual consumers, SMBs as well as large enterprises. However,
large enterprises will employ a hybrid cloud model in which both private and public
clouds are present. Many enterprises will run mission critical applications and store
business-sensitive data in the private clouds, while outsourcing their supporting
services to the public cloud.
 The role that IT staff is playing in the enterprises and businesses is also undergoing a
significant transformation due to the push for further IT based on cloud services. As
most IT staff move from business IT departments to service providers, the role of
remaining staff converts into support and consultation for service selection,
engagement and management.
 The biggest perceived advantage for using cloud computing is the ability to access the
data at any time and from any place, better access to services, reduced costs,
availability, easier collaboration, easier data recovery etc. Although all of the features
are individually perceived as more positive than negative, as the lowest priority
feature is rated the safety and control of data.
 In terms of usage of services in the cloud, small SMBs and individual consumers will
be the main users of IaaS, DaaS, SaaS and PaaS. Enterprises may demand
customization of services as the APIs provided by service providers may not offer the
flexibility and features they require. In addition, they may demand instances of
51
 services to be deployed in their private clouds for the sake of keeping data onsite and
retaining control. This can be seen as a transformation of how enterprises use
commercial software as services in the cloud.
 The virtual business operating environment for creating and conducting virtual
businesses using cloud based services is a missing piece and the current article lays
the foundation of architecture for an environment that addresses this pressing need for
businesses that intend to use cloud services.
 The Cloud service providers should be aware that security is a great concern for most
organizations. Data protection and privacy issues are holding back wide scale
adoption of Cloud computing in the enterprise. The current challenges must be
addressed including developing acceptable compliance and security policies, reducing
the risk by developing robust infrastructure for reliability and high availability along
with performance guarantee.
 Cloud computing is a model for provisioning and consuming IT capabilities on a need
and pay by use basis. This helps in shifting the cost structure from capital expenditure
to operating expenditure and also helps the IT systems more agile. This innovative
model of acquiring IT related services has made organizations to revisit their
infrastructure and platform services strategy and optimize their IT spending while
improving overall agility.

6.2. CONCLUSION

Cloud computing represents a fundamental shift in how organizations pay for and access IT
services. It has created new opportunities for IT services providers and the outsourcing
vendors. Cloud computing will have significant impact on outsourcing vendors, who must
adopt new strategies to include Cloud services as part of their offerings to keep up with the
profound changes in the IT services industry. They should experiment with Cloud services
and understand which models are suitable for their clients. This will help them to identify
new business opportunities that arise from Cloud computing.

Companies need to analyze the benefits of Cloud computing along with business impacts.
They must have a short-term and a long-term plan for deployment. Companies must also get
52
support from all the stakeholders including the top management. They also should come up
with a transition plan for all the users switching from old system to this new computing
paradigm. In addition, a training program for the users should be implemented wherever
necessary.

The outlook of IT services industry looks promising as IT outsourcing vendors enhance their
portfolio with various Cloud offerings. Many emerging trends will impact the future of IT
services and Cloud computing that include the integration of new services with the existing
ones, increasing number of applications that utilize Cloud infrastructure, and reliable global
delivery models on demand. The deployment of new innovative Cloud services with
attractive business models will lead to high level of customer satisfaction and unprecedented
adoption of Cloud services in the enterprise.

Protection and security of information is a prime concern in cloud computing information

storage. Despite the fact that cloud gives flexibility and ease public information storage and
management, yet there are chances for any intruder interaction and malicious activity.
Information stored at cloud server might be secret along with greater security.

53
 BIBLIOGRAPHY

REFERENCES

 Dhar, S. and Balakrishnan, B. (2006), “Risks, benefits and challenges in global IT

outsourcing: perspectives and practices”, Journal of Global Information Management,
Vol. 14 No. 3, pp. 59-89.
 Lee, J., Huynh, M.Q., Kwok, R.C. and Pi, S. (2003), “IT outsourcing evolution – past,
present, and future”, Communications of the ACM, Vol. 46 No. 5, pp. 84-9.
 Buyyaa, R., Yeoa, C.S., Venugopala, S., Broberg, J. and Brandic, I. (2009), “Cloud
computing and emerging IT platforms: vision, hype, and reality for delivering
computing as the 5th utility”, Future Generation Computer Systems, Vol. 25 No. 6,
pp. 599-616.
 Subhankar Dhar (2012) From outsourcing to Cloud computing: evolution of IT
services- Management Research Review Vol. 35 No. 8, 2012 pp. 664-675 q Emerald
Group Publishing Limited 2040-8269 DOI 10.1108/01409171211247677
 Schneider, S., & Sunyaev, A. (2016). Determinant factors of cloud-sourcing
decisions: reflecting on the IT outsourcing literature in the era of cloud computing.
Journal of Information Technology, 31(1), 1-31.
 Mesfin Alemu, Abel Adane, Bhupesh Kumar Singh (2020) Cloud-Based Outsourcing
Framework for Efficient IT Project Management Practices (IJACSA) International
Journal of Advanced Computer Science and Applications, Vol. 11, No. 9, 2020.
 S. C. a. R. Gibbons, "How and when can outsourcing IT improve organizational,"
2012.
 D. N. A. J, M. M. K. Muhammad Younas Imran Ghani, "A Framework for Agile
Development in Cloud Computing Environment," 2016.
 F. Shimba, "Cloud Computing: Strategies for Cloud Computing Adoption, (2010),"
2010.
 Y. P. Sunil Patil (2014), "A review on outsourcing with a special reference to telecom
operations".

54
WEBSITES

 https://www.lexisnexis.com/lexis-practical-guidance/the-journal/b/pa/posts/cloud-
based-outsourcing
 https://www.zdnet.com/article/what-is-cloud-computing-everything-you-need-to-
know-about-the-cloud/
 https://www.businesswire.com/news/home/20210603005507/en/India-Cloud-
Infrastructure-Market-Report-2021-2025---ResearchAndMarkets.com
 https://www.researchandmarkets.com/reports/5306312/cloud-infrastructure-market-
in-india-2021
 https://economictimes.indiatimes.com/tech/information-tech/gartner-forecasts-india-
public-cloud-end-user-spending-to-total-4-4-billion-in-
2021/articleshow/82304767.cms
 https://searchcloudcomputing.techtarget.com/definition/cloud-sourcing
 https://solutionsreview.com/cloud-platforms/managed-cloud-services-the-benefits-of-
outsourcing-cloud-management/

55
 APPENDICES
QUESTIONNAIRE
A STUDY ON EXAMINATION OF CLOUD COMPUTING ON IT
OUTSOURCING IN AN ORGANISATION AT R-MAC SECURE TECH

1. Name: __________________________

2. Department: _________________________________

3. Designation: __________________________________

4. Gender: a) Male b) Female

5. Age (in yrs):

a) Below 22 yrs b) 22 - 26 yrs c) 26 - 30 yrs d) 30-35 yrs e) Above 35 yrs

6. Experience (in yrs):

a) Fresher b) Less than 2 yrs c) 2.1-5 yrs d) 5.1-8 yrs e) above 8 yrs

7. Education qualification:
a)Hsc b)Ug c)Pg d)Diploma e)Others

8. Monthly Income (in Rs):

a) Below 10000 b) 10000 – 15000 c) 15001 – 20000 d) 20000 – 30000 e) Above 30000

9. How many employees work at your organization?

o Less than 100
o 100-500
o 501-1,000
o 1,001-5,000
o 5,001-10,000
o More than 10,000
56
10. Do you know what “Cloud Computing” is?
o Yes
o No

11. Do you know how “Cloud Computing” works?

o Yes
o No

12. Is cloud computing beneficial in IT industry?

o Yes
o No

13. Does your company use cloud computing?

o Yes
o No

14. Do you know how cloud deployment models establish?

o Yes
o No

15. Which “layer” of the Cloud would you be most likely to approach?
o Individual software packages (SaaS)
o Complete operating system and software package available via cloud services (PaaS)
o Just infrastructure services such as storage, network, etc (IaaS)
o Security services in the cloud

16. Which solution do you see as the most suitable for an IT company?
o Public Cloud (owned and managed by unrelated business)
o Private Cloud (owned and managed internally)
o Partner Cloud (owned and managed by a trusted partner)

57
17. What are the reasons behind your possible engagement in the Cloud Computing?
o Remove economic/expertise barriers impeding to modernize business processes
o Avoiding capital expenditure in hardware, software, IT support, Information Security
by outsourcing infrastructure/platforms/services
o Increasing computing capacity and business performance
o Diversification of IT systems
o Business Continuity and Disaster recovery capabilities
o Local and global optimization of IT infrastructure through automated management of
virtual machines
18. What did or does your organization view as the most important benefits of cloud
computing
o Cost savings on hardware / software
o Cost savings on IT operations staff
o Ability to rapidly launch new products and services
o Convenience for the development teams
o Pricing flexibility
o Outsourcing of non-core competencies

19. What were or are the greatest barriers for adoption of cloud computing in your
organization?
o Reliability
o Performance
o Geographic Location of Cloud Provider Data Centers
o Security
o Lack of Management Understanding / Willing to Innovate

20. Which types of applications do you use or plan to deploy into a cloud?
o Development
o Testing/QA/Staging
o Ecommerce application
o Internal enterprise application (e.g., HCM, Payroll, CRM, ERP)
o Monitoring / Application Performance Management
o Security/Compliance
58
21. Name few Cloud Service Providers in global
o Amazon Web Services
o Microsoft Azure
o Google Cloud Platform
o IBM Cloud
o Oracle
o VMware

22. According to you which Cloud Service Providers has the best brand image in IT Industry?
o Amazon Web Services
o Microsoft Azure
o Google Cloud Platform
o IBM Cloud
o Oracle
o VMware

23. According to you which Cloud Service Providers gives the best service in IT Industry?
o Amazon Web Services
o Microsoft Azure
o Google Cloud Platform
o IBM Cloud
o Oracle
o VMware

24. According to you which Cloud Service Providers gives the best pricing in IT Industry?
o Amazon Web Services
o Microsoft Azure
o Google Cloud Platform
o IBM Cloud
o Oracle
o VMware

59
25. According to you which Cloud Service Providers has the secured services?
 Amazon Web Services
 Microsoft Azure
 Google Cloud Platform
 IBM Cloud
 Oracle
 VMware

26. Suggestions if any ___________________________

60