Is IT Outsourcing a Failing Concept?

If you look over the past few decades or so, you would see an increasing number of Western businesses moving their IT departments abroad, whether to India, Pakistan, or other underdeveloped nations. There came a time when India became recognized as the hub for software development, as labor was relatively cheap as compared to what businesses would have to spend in the United States. However, all that has changed now.

Many software developers who were previously working for foreign workers have decided to start up software producing houses of their own. And they are doing quite well. They don’t want the bulk of the profits to be transferred abroad when they deserve a higher share of it. Even IT outsourcing, companies initially were only seeking to cut down costs by outsourcing it. But then there are disadvantages associated to this as well. The 3^rd party is not likely to live up to the promises you have made t your customers, completely failing the concept of Integrated Marketing Communication. Moreover, security is becoming a major issue. Employers are no longer comfortable with sharing company information with 3^rd parties, irrespective of binding agreements that hinder the 3^rd party to disclose information. This has led to companies creating IT departments of their own. They are concerned with the risks associated with IT outsourcing, and they are right to do so.

However, this entire procedure is likely to move gradually. Not many firms or businesses are well equipped to manage entire IT operations on their own, be it a lack of resources or a lack of capital. This is one major reason why they have to increasingly outsource major sections of their entire operation. Moreover, the emergence of an increasing number of outsourcing organizations clearly indicated that the concept is yet to fail.

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