While I agree with your assessment that cloud computing, automation, and artificial intelligence will play a significant role in the demise of traditional IT departments, I believe that there are other important factors at play that are worth considering.

First and foremost, the increasing complexity of modern IT systems is making it more difficult for in-house IT teams to keep up with the pace of change. With the proliferation of new technologies, platforms, and tools, it is becoming increasingly challenging for IT departments to maintain the necessary expertise in-house. This is particularly true for smaller businesses that may not have the resources to invest in a large and diverse IT team.

Another factor that is likely to contribute to the decline of in-house IT is the growing trend towards agile and DevOps methodologies. These approaches emphasize collaboration, flexibility, and rapid iteration, which can be difficult to achieve within a traditional IT department structure. By working with external resources, businesses can tap into a broader pool of talent and expertise, and can more easily adapt to changing requirements and priorities.

In addition, the rise of the gig economy and the growing availability of freelance IT professionals is making it easier and more cost-effective for businesses to augment their in-house capabilities with external resources. This allows businesses to scale up or down as needed, and to bring in specialized expertise for specific projects or initiatives.

Finally, I would argue that the shift towards external IT resources is not just a matter of necessity, but is also a positive development for businesses. By working with external partners, businesses can benefit from fresh perspectives, innovative ideas, and best practices from other industries. This can help to drive innovation, improve efficiency, and ultimately, create a competitive advantage.