Outsourcing of IT services

The widespread use of IT took over everycompanies in the developed countries of Europe
major functions of a company payrolling wasand America and get them done offshore at a
being done through computers, email became thefraction of the cost. IT offshore outsourcing
mode of official communication, day to daybegan with mainly outsourcing of support IT
management, account keeping, data maintenancefunctions while retaining the core IT development
everything shifted to Information Technology andand design work in the country.
computers and IT became the backbone of allOffshore outsourcing helped companies save cost
enterprises. The demand of trained IT workerson support functions and non-primary operations
soared to unimaginable levels. Finding the rightand use the same to develop R&D capabilities and
talent was sometimes not possible and it becamefocus more on growing their core area of
too expensive driving up the operational costs,business. Information technology outsourcing
many major corporations devised an alternativecreated a win-win situation for both the
to outsource their IT services to developingdeveloping and developed world, while the
nations which had the benefit of huge talent pooldeveloping countries had more well paid
and low labor cost. The impact of IT outsourcingemployment opportunities, it helped the
has been such that it gave birth to several billioncompanies in the developed world cut down on
dollar IT outsourcing companies in the developingtheir operational cost and spend more on their
world. The main business of such IT outsourcingcore function areas.
companies was to outsource IT services from