Enterprising Developments

Cloud as a Job Creator

Joe McKendrick
Insurance Experts' Forum, March 27, 2012

Last week, INN reported that IDC predicts cloud computing may soon generate more than 66,000 jobs in the North American insurance industry. 

The new study put together by IDC, and underwritten by Microsoft, also estimates that cloud computing will potentially generate at least 14 million new jobs across the globe within the next three years.

A number of these jobs will be in the insurance sector: “The insurance industry, generally a heavy user of IT, is already toward the top of the list in terms of investment in public cloud services as a percentage of IT spending, and cloud-related jobs in this industry are expected to almost double by 2015,” researchers say.

Already, IDC estimates that close to 350,000 jobs in the worldwide insurance industry are tied to cloud development, implementation or adoption. This number will almost double, up to 675,000, by 2015. In North America, about 42,000 jobs are tied to cloud, and this is projected to grow to 66,000.

What kinds of jobs are we talking about here? Yes, there will be plenty of IT jobs associated with the cloud phenomenon. But the report asserts that many of the jobs that are being created or will be created will cover a range of areas, including marketing, sales, finance and administration, production, and service.

And ultimately, cloud may create more jobs than it takes away. As the study’s author, John Gantz, put it: “A common misperception is cloud computing is a job eliminator, but in truth it will be a job creator — a major one. And job growth will occur across continents and throughout organizations of all sizes because emerging markets, small cities and small businesses have the same access to cloud benefits as large enterprises or developed nations.”

For the insurance industry, known to be extra cautious when it comes to new technology adoption, cloud offers opportunities to expand and grow without the large risky investments that technology often required.

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

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