Outsourcing as a business strategy was started in mid 1990s to manage workload and cut costs using tools of information technology. With the passage of time, wider use of the internet and much improved connectivity and communication has made outsourcing an easy tool for solving business problems, management of excessive workload and shortage of skilled workers. Although outsourcing is mainly used by the IT enabled industry, it is interconnected with all other businesses and influences other sectors by various means. Based on the dramatic growth in outsourcing by businesses in last few years, it seems that in future outsourcing will permeate all Services-Provider industries in the world.
Outsourcing has a new impetus in the current financial recession when companies are facing all round pressure to cut costs. They need to be leaner and smarter to emerge unscathed from this storm. The ones are able to leverage outsourcing competently will have a better chance of survival.
Outsourcing, which started with doubts of incomplete tasks, quality, quantity and turn around time issues and with a great risk to confidentiality, has proved successful in the past decade. Outsourcing has a secure future and will remain essential for businesses all around the world.
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