The Information Technology (IT) and Outsourcing industry has witnessed a strong growth in the recent past. Outsourcing in IT refers to contracting out IT functions to companies specialized in IT services. IT services typically outsourced include data centre operations, software development, desktop support, IT network infrastructure, website/E-commerce development and its maintenance.
Outsourcing in IT sector predominantly started in the 1980’s in the United States of America, where IBM was considered to be the major IT service provider. IBM thus, is a oldest player in this sector. Worldwide IT outsourcing revenue increased by 2.8% year-on-year in 2013.
IT outsourcing market in Asia Pacific region is expected to grow by 6% during the period of 2016-2020. India was declared as most popular outsourcing destination worldwide in 2016 on parameters of business attractiveness and financial feasibility. The country has been applauded for its quality manpower at economical price, easy outsourcing process and superior infrastructure. India’s total outsourcing industry is worth approximately USD 150 billion.
During last few decades, China’s IT industry has seen terrific growth and has become a vital industry in the country’s economy. The country has largest internet users in the world totalling to 700 million users which was as small as 22 million users in 2000. In Q1 2016, IT outsourcing related contracts formed 52.5% of the total outsourcing contracts fulfilled during the period, which depicted 16.2% year on year growth. The country ranks as second largest software outsourcing destination after India. IT industry in China is expected to grow by 15% annually in the next five years.
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