IT outsourcing came about as a result of need for efficient and cost effective way to manage large IT infrastructures. Back in the day, the cost of hiring an IT expert was very high. This was because there were very few IT experts. Hence the few that were available were in high demand for the services they offered. The cost of their services therefore went up. That is simple economics. When the demand for a good or service increases and the supply remains constant, the price of that good or service will also increase.
Offshore IT outsourcing became popular with the revolution of the sector in the 90s. Back then not many people knew what a computer is or what it was meant to do. Big companies such as IBM began outsourcing their IT services to offshore companies. The main reason as to why they were outsourcing the services to offshore it outsourcing companies is to save on costs and increase efficiency. Most of the offshore IT outsourcing companies were set up in India for a few reasons. One reason is the fact that India has a large pool of qualified IT specialists. Hence the cost of labor is lower in India as compared to other countries.
Offshore IT outsourcing companies manage large amounts of data that is generated from the networks of large organizations. IT outsourcing companies also handle other issues such as software development and web design. These services are handled by qualified personnel who have undergone thorough training on how to offer the IT services.
Most of the offshore IT outsourcing companies are located in India. Government incentives and investor friendly policies have seen the outsourcing industry grow tremendously. The industry is expected to grow further in the coming years. The outsourcing industry began in India in the 90s. Back then it was not as common as it is today. However the outsourcing services would later on be very popular with companies that want to cut costs.
Outsourcing IT services free resources of the company and the freed resources can then be used to carry out core functions of the business. It will also increase efficiency or production. That is just one of the benefits of offshore it outsourcing. If you are considering to outsource your IT services to offshore companies, the first place that you should consider is India.
Daven Michaels Author of the book Outsource This!