Source Code China: The New Global Hub of IT (Information Technology) Outsourcing

Chapter 1. Outsourcing: The Most Important Management Trend of the Past 75 Years

The global outsourcing race is on. If you are not outsourcing, your company may not survive. Your competition is earning points ahead of your market share and everything that goes with it. Harvard Business Review identified outsourcing as “one of the most important management ideas and practices of the past 75 years.”^[1] The ability for companies to achieve high-quality results at a lower cost while also reducing head count would most likely have been considered a business revolution some time ago.

At the macro level, the process is triggered by competing forces engaging in outsourcing. Simply by not engaging in it, you are losing out because others are getting into it.

The concept of outsourcing is not rocket science. It is simply about sourcing the most qualified talent at the most effective rates. It allows you to focus on what you do best—your core business. Do what you do best—let some tech nerds do their thing.

Cost is part of the equation, but more so than that is the amount of tech talent. Technology is moving fast; it is hard for people to stay current unless they are constantly learning. Western-educated people have a tendency to get bored easily with perceived low-end programming jobs. This allows both outsourcing firms and their clients to tap into markets where it is easier to structure teams of various sizes in day or night shifts.

Outsourcing is more than just a business process—it is also ...