An Introduction to Outsourcing
Outsourced accounting services in the recent times there have been lots of speculations and negative criticisms against Outsourcing to offshore destinations. But it has to be noted that outsourcing as a phenomena is not new but has been going on since ages. If one looks at the outsourcing history one can realize that since ancient time's companies in developed countries have outsourced services to nearby less developed counties.
Outsourcing arises when companies contract with other companies to perform a particular function. Companies seek to outsource jobs or projects to companies who are experts in that function or who can provide that function at a much lower cost relative to hiring personnel.
IT outsourcing includes the outsourcing of IT related functions such as website design and maintenance, data collection, database management and management information systems. Since information systems is an essential part of day-to-day operations, IT outsourcing is more complicated and involved when compared to outsourcing functions such as payroll.
IT outsourcing started in the 1980s with companies liked EDS and IBM who ran large mainframe data centers and provided IT and computer outsourcing services to other companies. When the Internet came on the scene in the 1990s, Application Service Providers (ASP) surfaced and offered web-based outsourcing services. Today, the latest IT outsourcing trend is called "cloud computing."
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