An outsourcing industry expert suggested cloud computing should be viewed as a form of outsourcing, according to a recent report.

In comments to ZDNet Asia, HiSoft CEO Loh Tiak Koon claimed cloud computing is "the highest form of outsourcing." Contrary to what some have suggested, cloud computing should be viewed as overlapping with outsourcing and not competing with it, Loh said.

According to Loh, a company that moves its IT solutions to the cloud has "practically outsourced its data center, software development, everything." This is a choice being made by a growing number of U.S. companies and organizations in order to reduce costs and streamline processes.

Loh claimed that not all services can yet be outsourced through the cloud. Nevertheless, cloud computing has now reached the point at which there is sufficient awareness of its cost and efficiency benefits for the concept to grow quickly, he said.

The report claims that the entire services sector of the global technology industry is experiencing sustained growth. According to Loh, outsourcing accounts for approximately one-third of this expansion.

Cloud computing is widely expected to continue growing in the coming years. According to a recent 451 Market Monitor report, worldwide cloud computing revenue is expected to reach $16.7 billion by 2015.