Final answer:
The term that best characterizes the transition from physical IT components to a service-oriented environment is Cloud computing. It represents the provision of IT resources over the internet and reflects the broader move towards an information economy.
Step-by-step explanation:
The change from physical items, such as servers and hard drives, to services-oriented IT environments is best characterized by the term Cloud computing. This model allows individuals and companies to use computing resources, such as storage or applications, over the internet on a pay-per-use basis, and is part of a broader transition to an information economy. It differs from Virtualization, which involves creating a simulated, or virtual, version of something, including but not limited to computing hardware. While Virtualization is often used within Cloud computing environments to maximize the use of the physical hardware, Cloud computing itself concerns the delivery of services through the internet.
Automation refers to the use of technology to perform tasks without human intervention and is another factor that contributes to the change in the job market by replacing workers with technology. Lastly, Outsourcing is when a business contracts an outside firm to perform services or create goods that traditionally were performed or made in-house, which can also include moving operations to another country, known as offshoring.