Analyse the Importance of Information and Communication Technologies in the Process of International Outsourcing.

Topics: Business process outsourcing, Outsourcing, Offshoring Pages: 3 (1028 words) Published: December 12, 2012
Analyse the importance of information and communication technologies in the process of international outsourcing.

Information and communication technologies are of paramount importance in the process of international outsourcing primarily through the technological advancement surge and demand in recent years. Through the rise of Information technology in recent years, the importance of international outsourcing rose significantly. Outsourcing is the contracting of the management and/or execution of a business function to an outside third-party contractor or subcontractor. Outsourcing typically refers to the contracting of services to an offshore, rather than domestic, company. While outsourcing has been an accepted business practice for hundreds of years, it has recently become a key component in the success of many domestic and international firms especially in Information and communication sectors.  In the modern world, businesses will define what they do best, organize the whole and outsource the rest.

India is the leading country for offshore outsourcing. The offshore outsourcing industry started in India and it has been able to grow the IT and BPO export sector to $47 billion and capture more than half the offshore outsourcing industry. That is not to say that India does not have challenges or is the best location for every offshore outsourcing effort, but it has an unparalleled history and size. The Americas and Europe are the largest customers for the Indian outsourcing industry and account for 60% and 31% respectively of IT and BPO exports. The largest vertical sectors are financial services (41%), high-tech/ telecom (20%), manufacturing (17%) and retail (8%).  In 2009 the IT and BPO export industries employed about 2.2 million people. IT and BPO services outsourcing first started in India in the mid 1980s. The large, English speaking, low-cost workforce was the main attraction. The industry grew rapidly through the 1990s aided by the Internet boom...
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