Comment by jajaBinks

I think what they mean is that IT Outsourcing that specifically involved deploying, installing, upgrading, configuring tools and software is being disrupted by cloud, because you don't need to worry about a lot of such things any more. Like bringing up 20 windows machines, and installing SQL Server, .NET Framework, and domain join the machines used to be a 2 day affair, not so with Azure. Nothing to do with outsourced software development. The cloud may actually boost outsourcing in that area.