In the past, companies hired in-house personnel to perform business functions such as IT services. Hiring and training personnel to perform specific functions was costly.
Since core competencies are the basis of competitive advantage, enterprises eventually realized that they need to focus their human and financial resources to core departments and delegate other secondary functions to third-party contractors and vendors—this is how IT outsourcing services emerged.
It’s not easy to clearly define when IT outsourcing began because the term can mean different things to various people. However, one thing’s for sure—the concept and practice of IT outsourcing have changed through time.
Since the 1970s, IT outsourcing has become a priority for companies both small and large. Today, IT outsourcing has extended to complex tasks and processes that completely changed the way industries operate.
Computer Weekly outlined the history of information technology outsourcing, and we’ve created a visual timeline of how it became the common practice we know today.
IT Outsourcing Has Gone a Long Way
Outsourcing services outside a company’s forte is very common practice nowadays. Aside from eliminating additional overhead costs, outsourcing enables a company to focus on their core competencies and delegate other functions to companies or professionals that specialize in specific functions.
IT outsourcing will always be a huge and dense industry, but IT will constantly change, along with new technological advancements and innovations.
Today’s world is moving at breakneck speed, and there’s always a new technological trend or scientific breakthrough. Then again, information technology never stays the same for too long, and you can count on it.