Are inflexible labour markets the real barrier to cloud adoption and IT agility?

In a columns in Forbes, Forrester Research puts out a barrier to cloud adoption and IT flexibility that I haven’t heard before:

This CIO started our conversation by saying, “Matt, all you market analysts suggest the biggest cost benefit of cloud computing services is reducing headcount associated with administering commodity IT services – what you fail to understand is it often costs us more to make jobs redundant in my company than it does to keep people.” Yes, many of our clients are very direct with us – and she said it with a great accent, which stings even more. For this client, the inflexibility of labor laws and the power of labor unions is a far bigger constraint to her IT agility than is the complexity of IT systems or internal processes. Clearly, if you can’t recognize the benefits of an IT investment in a reasonable time period due to factors that exist beyond IT’s control, it’s not a strategy.

via Matt Brown, VP at Forrester Research in
Sadly, in Europe and particularly in the public sector, this message resonates.

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