IT Offshore Outsourcing

IT Offshore Outsourcing

Offshore outsourcing refers to services that a client company contracts from a vendor located abroad. These services often include labor, infrastructure or capital. More often in the last three to five years, offshore outsourcing refers to the information technology work performed for American companies by overseas Information Technology (IT) companies. What began over a decade ago as a cost-effective means to supplement overworked application developers has become a trend that dramatically affects the entire American IT workforce. Some say this trend will have a lasting affect on the American economy as a whole.
The main reason many companies are now turning to overseas IT providers is profitability. IT work can be contracted to offshore companies cheaper than paying an IT staff. The practice began with the development of India?s technology universities and training infrastructure. The programming skills needed are now readily available in many countries including China, Russia and the Philippines. Labor rates and related personnel costs in these countries are significantly lower than in the United States. A company can hire well-trained, professionally educated IT workers from India at a significant savings over hiring American IT workers.

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