Chapter 1. Introduction to Outsourcing

The topic of outsourcing has gained much attention in the press. A Gartner, Inc., report dated March 10, 2004 states, “The worldwide outsourcing market is expected to grow from $161.9 billion in 2002 to just over $235.6 billion in 2007 at a compound annual growth rate (CAGR) of 7.8 percent.” The article continues, “Because of the recent global economic downturn, cost reduction has been the primary driver for outsourcing over the past several years and continues as a strong driver even as economic growth returns.”1 Outsourcing of IT services clearly will be a major venue for the fulfillment of our needs for IT systems for years to come. Figure 1-1 shows the breakdown for worldwide IT outsourcing and its respective ...

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