An expert has revealed the major issues facing IT outsourcing customers, InfoWorld.com reports.

According to Barry Briggs, chief technology officer at Microsoft, globalisation, increased regulations and data growth will be the major factors which shape the industry in the coming years.

Mr Briggs told industry professionals at the Massachusetts Institute of Technology Conference on Monday (May 31st) that the obsession with cloud computing was misplaced as it is only one of several things that will have an impact on IT.

He also revealed his belief that globalisation will change the role of IT in the supply chain too, the IT news provider said.

However, the development of the cloud is likely to lead to more strict government regulations as businesses seek reassurances over security, he added.

UK spending on cloud computing is set to double by 2012, reaching over ?1 billion, according to TechMarketView. At present, cloud-based services account for 7.5 per cent of the ?8 billion UK software market.