Abstract

IT (Information Technology) outsourcing is one of the most prolific areas of research in the recent years. It is an act of delegating or transferring some or all of IT related decision making rights, business processes, internal activities, and services to external providers, who develop, manage, and administer these activities in accordance with agreed upon deliverables, performance standards and outputs, as set forth in the contractual agreement. Global offshore outsourcing, involves contracting with a low-cost offshore service provider that assumes responsibility for all or part of the information systems development lifecycle. In addition to lower cost, other benefits of offshore development and outsourcing include access to specialized technical skills and services, and the ability to respond to IT labor shortages according to variations in global supply and demand. Enterprises within and outside the IT industry have long used offshore development and outsourcing to reduce information systems development and maintenance costs and as a source of specialized, low-wage workers. In the last decade, there has been a spur of activities in offshore outsourcing which is driven by the e-Business revolution and a worldwide demand for IT skills. This contributed to the growth of IT related industries in countries such as Ireland and India. Meanwhile, vendors from the Philippines, Russia, Hungary, China, Taiwan, Mexico, and other countries entered the market, and in some cases, adapting business models established by Indian firms that have dominated the services sector in the past decade. The emergence of new offshore centers has been marked by new approaches and skill sets, adding to the services and value propositions that define the offshore sector today.

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