IT outsourcing is an arrangement between a client and a vendor who can provide IT services. In this arrangement the IT outsourcer agrees to provide IT service to the client for an agreed fee. Invariably, a contract called service level agreement is signed by both the parties. In terms of benefits to the client, he is able to concentrate on his core activity and is in a position to outsource part or all of his IT functions to the outsourcer. In addition, the outsourcer is invariably a company very strong in IT technology. Hence, he gets the benefits of expert advice at no cost. The IT outsourcer benefits as he gets a fairly long contract and he can expect a fixed income every month. IT outsourcing has been growing very fast over the last ten years and is likely to grow further in future. IT outsourcing has seen double digit growth over the last five years. However, future growth may not be that high. Currently, the value of offshore IT outsourcing exceeds US$200 billion. IT outsourcing has led to job losses in the US, the UK and other developed countries. In terms of problems of the IT outsourcing industry there has been a lot of attrition causing dissatisfaction among customers. The other problems include intellectual property rights and failure of outsourcers to deliver as per the agreed terms. The IP rights problem is likely to increase as IT outsourcing shifts to countries like China and Vietnam. Political conditions in countries like China, Russia and Ukraine are also not very stable. In the near future, India is likely to continue to be the top destination for IT outsourcing. The book discusses the evolution and growth of IT outsourcing, concerns and also a few country experiences.
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