Cloud Computing Adoption, Cost Efficiency, and Organizational Performance in Pakistan’s IT Sector

Abstract

Cloud computing has transformed the working environment of the information technology (IT) organizations globally and the firms have been in a position to optimize on cost, grow flexibility and general performance. The application of cloud technologies to the Pakistani IT industry is topical as one of the strategic requirements which allow organizing the efficiency of operations, reduction of costs, and competitive advantages. The paper investigates the relationship between the application of cloud computing, the cost-effectiveness and performance of the organizations of IT companies in Pakistan. The paper uses statistical modeling, including regression analysis and structural equation modeling to establish the impact that the adoption of clouds has on cost efficiency and, by extension, performance of firms. The findings reveal that a higher level of cloud adoption can positively impact the cost-efficiency and influence such performance indicators within the organization as the operational productivity, scalability, and financial performance. According to the paper, cloud technologies may be the secret of sustainable development of the Pakistani IT industry and its competitive power.